Jan 25th, 2024 – Portfolio holding Boeing (BA) (Purchased 0.15 units @ $248.79) fell 5.71% today, as the FAA announced a pause to the production of their 737 max 9 planes. However, on a positive note, the planes already produced are now allowed back in the air. This was a major blowback to our holding’s business model. Therefore, we are now reconsidering our stance on the future of the company within our portfolio altogether.
From a more macroeconomic perspective, an estimate of the USA’s economic growth in the last fiscal quarter of 2023 beat analyst expectations by 1.3%, as the economy grew by 3.3% compared to 2% expected by analysts. The market reacted mildly, with the Dow Jones falling by 60 basis points (0.6%) and the S&P 500 rising 50 basis points (0.5%).
Today we realized some gains, as we sold General Dynamics (GD) (Purchased 0.1 units @ $244.87 sold 0.1 units @ $261.16) together with part of our Nvidia holding (Sold 0.0373 units @ $622.10). We’re still bullish on both stocks, however given the short term nature of our investments, we wanted to lock in some gains. GD has rallied 6.7% from when we purchased it, and we felt satisfied with the profit earned from the defense stock. Nvidia has instead been a staple in our portfolio, and we simply wanted to make sure to not be impacted by any future correction in the stock’s price.
Author: Stefano Rizzi and Luca Sesena