Market Report Jul 23 2023

The upcoming week holds significant events in the investment landscape, with the focus on the Federal Reserve's policy statement regarding interest rates. While the market appears to have already priced in potential outcomes, it remains uncertain until the statement is released. Additionally, earnings season is underway, and some major holdings like MSFT and GOOGL are set to report their earnings. As an investor, it's essential to monitor these developments and manage positions accordingly.

For MSFT, a substantial position in our portfolio since 2020, recent profits have been taken, though possibly not as much as desired due to its significant growth over time. As earnings season can lead to short-term volatility, the focus should remain on the medium to long-term trends, which have been bullish for MSFT. However, this outlook also depends on market sentiment and sector performance, which could be influenced by the Fed's policy decision.

In the UK, there's an ongoing discussion about potentially removing iMessage and FaceTime due to government's desire for access to confidential information. This could have significant implications for tech companies like Apple, but the outcome remains uncertain, pending an eight-week consultation.

In Paris, there's an interesting trial of a motorway stretch that allows electric vehicles to recharge while driving, potentially addressing charging station wait times and encouraging EV adoption.

Regarding investments in the electric vehicle sector, Tesla stands out as a market leader, benefiting from its early entry into the EV space and superior battery technology. Despite short-term margin concerns, the long-term potential of Tesla is highly regarded, making it a bullish choice for many investors.

Woods' Ark Innovation Fund has made strategic moves, divesting from China-related stocks due to concerns over the real estate market's debt burden. While Tesla is present in China, its overall outlook remains positive due to its strong market position and advanced technology.

One potential investment opportunity being considered is a payment systems company FOUR, which has shown positive price action and may fit well into the portfolio, pending earnings outcomes and portfolio positioning.

As always, thorough analysis and consideration of various factors are crucial before making any investment decisions. It's essential to stay vigilant during this eventful week, as market movements and earnings reports can significantly impact investment strategies.

Anne Chapman

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