The clear bet for 2024 is fixed income. The central banks' rate hikes — the fastest hikes in history — have created more than attractive coupons. As we see it, it's a year where stocks play a major role. This is where to look.
Yes, 2024 threatens to repeat what 2023 did and perhaps the only variable that could cause markets to have a related scare is an early or delayed cut in rates globally, as the current market consensus is that they will fall in almost everyone except Japan, which leaves institutional investors looking for a little bit. . Lower bond yields mean more risk in their portfolios. Ultimately it is central banks that steer the direction of stock markets, both in terms of interest rates and asset returns. See: Everything points to a great year ahead for the stock market. Even if you don't believe it…
If there's one sector that can confidently discount this scenario of low interest rates, it's the tech sector. And, within the US market, we need look no further than this sector. For Keith Lerner, co-chief investment officer at Trust, it's a simple math equation. The technology sector makes up nearly 30% of the S&P 500, the largest of the 11 sectors, and the Magnificent Seven Tech stocks alone account for nearly 30% of the index's market capitalization, making moves in those sectors important. Investors in broad indices.
“Technology that shows profitability and the ability to increase profitability at a good pace, even if it's a step down in growth, with the concentration that still exists, is critical for this market to continue moving forward,” Lerner said. Yahoo Finance is ahead of tech earnings on Wednesday.
This has left the US market unstuck. “The ones that are in independent living today are the Nasdaq 100 and Philadelphia Semiconductor. In the mix, obviously, we can't talk about the free rise or the S&P 500 yet, because it's only over three days,” says Roberto Moro, independent technical analyst.
Some markets even lose support such as Ibex 35. After losing 10,000 points, it did not hesitate to drop 9,900 points this week. At most, they were below estimates.
But there is life beyond banks. Looking ahead to the first part of the year, there are recurring sectors in the races: infrastructure, technology and consumption. All of them are favored by the low interest rate environment. In these sectors, Spanish companies that are important players in this period are increasing, such as ACS, Inditex or Ferrovial.
And in the case of companies linked to the behavior of bonds, if rates start to fall, such as utilities or renewable energy companies that generally have a positive call globally, says Juan Luis García Alejo of Andbank. I think that's where we're going to get a good portion of the journey. Because of the visibility, they will give you benefits and long-term interest rates will be slightly supported in the next year.
Some companies in the utility sector have state participation in their shares through SEPI. Bonds such as Redeia or Enagás are analyzed by the investment strategy analysis department because, being companies with a significant share of the state in their shareholders, there is a higher regulatory risk or intervention risk than other companies. Not in presence.
Without leaving the Spanish market, Fluitra describes a continuation of the bullish trend in the form of an ascending triangle. In this sense, we keep an eye on the attempt to break above 19.48 euros and may continue to rise to 13.57% against this gap and 19.97% against the upper side of the bullish channel.
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If there is one good asset in 2023, it will undoubtedly be Bitcoin. The launch of ETFs in cryptocurrency doesn't seem to have gone down well with its price, but some experts are promising that the cryptocurrency could hit a new all-time high as early as the next half. It has a strange relationship with the S&P 500.