As the year ends for central banks, the optimism established before the meetings is maintained in the face of confirmation that rates will be cut in 2024. A photo repeated next year, most voices are talking about an increase in stocks, but where to invest?
On Wall Street, in recent weeks, we’ve seen many investors overconfident that there won’t be more rate hikes and expect them to fall — even stronger than companies themselves have let on — and that’s the opposite of the behavior we’ve seen. The beginning of the year in the technology sector. A sector that is preparing for an unprecedented recession and is expected to return over 30% this year.
According to the Sectoral Strength Index prepared by Premium Zone, two are the clear leaders at the moment: insurance and financial services. Other sectors that gave an overall or globally positive tone were retail, construction, media, technology and banks.
One sector, particularly the Big Seven, was responsible for a sharp rise in indices on Wall Street. In fact, if we take a snapshot of the US market now, we see that the leaders in the market have nothing to do with those who led the indicators 30 years ago.
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The companies, at their current size and presence, don’t even remotely represent what we do now, with that stock market evolution that made Apple three billion dollars or bigger than NVIDIA at the start. Values exceeding a trillion dollars and values such as Warren Buffett’s investment vehicle Meta or Berkshire Hathaway.
María Mira and José Antonio González, investment strategies analysts, analyze the technical and fundamental 6 technology companies linked to the development of artificial intelligence (AI), we mention: Microsoft, Alphabet, Qualcomm, Meta (Facebook), Nvidia and ASML .
The truth is that banks represent the US of technology in Spain. Jose Antonio González, a technical analyst at Investment Strategies, says it’s a sector with the first indication that a correction will begin. “A correction that is far from extreme, while maintaining a clear medium-long-term structure, will allow us to eliminate excessive overbought in the short term. Our approach to this sector should be constructive unless the price says otherwise.”
Another of the sectors with a heavy weight in the selection is utilities. Among the companies that are part of the sector, GPM analyst Javier Alfayate recognizes that Endesa is a defensive value and that “above 19.20 euros is good. In the field I would choose Entesa or Iberdrola, which is a classic.
Ibex 35 securities had a great year in the stock market, with an average return over the past 12 months of 17% below the profits of those in the continuous market, but with a high percentage of success, 80% of large companies won. Acciona was the only one that tricked the market.
Another year in investment strategies, one year ending, this time starting in 2024, we want to bring relevant market information to our users. We seek to show what is the evolution of the major listed companies in 2023, what are their plans and challenges for the next year, and where are the investment opportunities.
