Over the last few weeks, the newsflow for China assets has been horrendous, whether it’s the macro data or the policy side (disappointment at the scale and lack of detail)
While sentimnet on China is very bearish, Greater China stocks have outperformed over the past month. This could be a sign that the worst is behind and that bad news are already priced in. Source: J-C Gand, Bloomberg
Market cap of listed domestic companies as a % of GDP for selected countries
Switzerland is way ahead of peers in the ranking. US comes next Source: HolgerZ
Cloud Infrastructure Services Market
$65 billion in spending in Q2 2023. → +18% Y/Y and +3% Q/Q. Market share: 🟧 $AMZN AWS 32%. 🟦 $MSFT Azure 22%. 🟩 $GOOG GCP 11%. Big 3 = 65% of the market. Estimates by Synergy Research Group. Source: App Economy Insight
The Magnificent Seven have added nearly $4.2T in market cap this year, led by Apple’s $AAPL $781B increase and Nvidia’s $NVDA $745B rise
Microsoft $MSFT, Amazon $AMZN, and Meta $META all have added over $500B as well. Will it last? Source: Beth_Kindig
The Kobeissi Letter - Financial Events in 2023 So Far:
1. Mortgage rates pass 2008 highs at 7.2% 2. Credit card debt set to hit $1 trillion for first time ever 3. Regional bank crisis leads to 2nd and 3rd largest bank collapses in history 4. Fed raises interest rates to highest level since 2001 5. Debt ceiling crisis nearly leads to US default 6. US sees most bankruptcies since 2020 lockdown 7. Interest expense on US debt set to cross $1 trillion annually 8. Fitch downgrades US credit rating for first time since 2011 Yet, the S&P 500 is up an incredible 700 points this year. Is this the most resilient stock market in history? Source: The Kobeissi Letter
MSCI World long-term performance by style
Quality outperforms by far with a lower standard deviation (NB: past returns are not a guarantee for future returns). Source: Invest In Assets | Stock Market Investing
July cross-assets performance billboard by DB -> After a mixed performance in June, July was largely positive for assets across the board
Oil stole the show, as supply cuts spurred upward pressure on prices, and the AI excitement saw the S&P 500 and the Nasdaq extend their rally, both securing their fifth consecutive month of positive total returns. Fixed income took a hit in July, as central banks continued their hiking cycle (via HolgerZ)
2023 has been so far the mirror image of 2022 in terms of #assets returns 2022/2023/2022-23 Combined Total Returns...
$NVDA: -50%/+220%/+59% $AAPL: -26%/+52%/+12% $MSFT: -28%/+41%/+1% $SPY: -18%/+21%/-1% $QQQ: -33%/+45%/-3% $META: -64%/+165%/-5% $GOOGL: -39%/+50%/-8% $AMZN: -50%/+59%/-20% $TSLA: -65%/+117%/-24% $NFLX: -51%/+49%/-27% Source: Charlie Bilello
