Market Report Jun 25 2023
Our primary focus is to align our strategic approach with the evolving market trends. We are witnessing a market pullback, and our task is to assess whether this development is significant enough for exploitation or merely a high-volatility pullback.
As a rudimentary measure, we refer to year-to-date percentages to distinguish between thriving and underperforming stocks. Among the S&P 500, Nvidia, Meta, and Tesla emerge as the top performers. Our current holdings include Nvidia and Tesla, while our stake in Meta has been relinquished.
On the macroeconomic front, the upcoming release of the Personal Consumption Expenditures (PCE) inflation data, a favoured metric of the Federal Reserve, will provide more insight into prospective monetary policy actions for the rest of the year. Market participants have already factored in at least one rate hike, with a 15% probability of a second hike. CFRA Research has identified AI frontrunners, namely AMD, Broadcom, Marvell Technology, and Nvidia, all projected for strong performance moving forward, with AMD and Nvidia forming part of our current holdings.
In real estate, landlords in New York and London have been observed abandoning office tower debts due to diminished occupancy rates, potentially due to the rise of hybrid work models. Similar trends manifest in San Francisco and Hong Kong, where the largest shopping mall and a new skyscraper are underutilized, respectively. Lastly, Spotify continues to reign as the leading music streaming platform, with both free and paid versions showing a strong market presence. From an investment lens, it's upward trending chart shows promise, given its substantial progress since breaking past resistance.
Anne Chapman
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