09Apr 2024 by Cattolica Investment Club No Comments
Building a Balanced Portfolio: The Art of Diversification

Building a Balanced Portfolio: The Art of Diversification

Educational in Portfolio Management
Creating a balanced portfolio is analogous to constructing a robust house: each component plays a crucial role in ensuring its stability and resilience. In the world of finance, portfolio diversification stands as the cornerstone of prudent investment strategy; at its essence, diversification involves spreading investments across various asset classes to mitigate risk and maximize returns. This practice not only safeguards against market volatility but also enhances the potential for long-term growth. Diversification offers several benefits, the most important among them being risk management. By allocating investments across different assets, investors can reduce the impact of adverse events on their overall portfolio performance. Furthermore, it allows for exposure to a wide array of opportunities, thereby capturing potential gains from multiple sources. A balanced portfolio typically comprises a mix of stocks, bonds,…
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09Apr 2024 by Cattolica Investment Club No Comments
GOLD: A “SAFE HAVEN” OR A FRAGILE ILLUSION? 

GOLD: A “SAFE HAVEN” OR A FRAGILE ILLUSION? 

Daily in Portfolio Management
April 8th, 2024 - It is thought by many that good times for always increasing gold prices may have come to an end and the price of the commodity could experience a downturn shortly. The spot yellow metal price has hit a fresh record of $2,375.5 per ounce on Monday confirming the positive trend of the “safe haven” in times of uncertainty like these. Notwithstanding that, there are strong beliefs that it could be the moment for the ongoing growth to cease, therefore for prices to decrease as several other factors come into the game.  The first among them is the so-called “catch-up effect”: investors think gold has to catch up with other assets and keep investing in it, as a consequence of actually projecting such expectations as reality, they…
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09Apr 2024 by Cattolica Investment Club No Comments
Unlocking Opportunity: The small-cap health-care stocks suggested by Jim Cramer.

Unlocking Opportunity: The small-cap health-care stocks suggested by Jim Cramer.

Daily in Portfolio Management
6th April, 2024 - The financial guru from CNBC, Jim Cramer, had brought into the notice the rosy prospect of microcap stocks, particularly in healthcare as one of the best investment options for the year 2024. Stating that the most notable effect is the revival of the smaller companies, Cramer indicated five companies that though seem to be less known, still have the potential for great growth. Among the listed companies is Integer Holdings, a popular medical-device manufacturer which is in the sector of product design. Cramer noted the company's favorable standing due to the constant health-care occupation rates and the fact that there is a backlog of patient procedures that had been postponed during the pandemic. Another stock that Cramer advises is Progyny, a fertility benefits management firm which…
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09Apr 2024 by Cattolica Investment Club No Comments
ZALANDO STOCK ANALYSIS

ZALANDO STOCK ANALYSIS

Stock Analyses in Portfolio Management
April 5th, 2024 - On Friday, Zalando lost 5.72%, it lost 9.08% in the last 5 trading days, but it is up 24.07% in the last month, 11.25% in 6 months and 15.6% from the beginning of 2024.  Founded in 2008 in Berlin, Zalando is a leading European company in the e-commerce sector for fashion and lifestyle products. Zalando had its golden era during the pandemic with a stellar operating income and having a Compounded Average Growth rate on EBIT of 45% from 2019 to 2021.  This analysis of the company starts from 2012, and since then, Zalando revenue increased at a CAGR of 19.78%, while the EBIT grew 11.78% from 2014, because in 2012 and 2013 it was negative and for this reason the CAGR formula was not applicable.…
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09Apr 2024 by Cattolica Investment Club No Comments
Major Indices fall in anticipation for March’s job report

Major Indices fall in anticipation for March’s job report

Daily in Portfolio Management
April 4th, 2024 - Stocks tumbled on Thursday in a session of volatile trading ahead of the March jobs report. The Dow Jones lost 530.16 points, 1.35%, to close at 38,596.98, suffering its worst session since March 2023. The S&P 500 dropped 1.23% to end at 5,147.21 and Nasdaq dipped 1.40% to close at 16,049.08. Levi Strauss (LEVI) stock jumped over 20% on Thursday after the company reported solid first quarter results and enjoys added exposure through a new Beyonce song. The results came in with a revenue of $1.56 billion against an estimate of $1.55 billion and adjusted earnings per share resulting at $0.26 versus an analyst estimate of $0.21. At the end of the day the growth settled at 12.38%. Shares of Conagra Brands (CAG) closed on Thursday…
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09Apr 2024 by Cattolica Investment Club No Comments
Oil prices continue rising as JPow outlines his signals for possible rate cuts

Oil prices continue rising as JPow outlines his signals for possible rate cuts

Daily in Portfolio Management
03 April 2024- At a conference held by Stanford University in California, Jerome Powell commented on the current stance of the US economy and he answered some questions. Recently, the data on job gains and inflation came higher than expected, when commenting on this data, Jerome Powell said that it doesn’t change the big picture which is solid growth but a rebalancing labor market. Powell also said they have to step back and watch for the upcoming data to see if recent data is just a ‘bump’ on their way to the 2% inflation target. Powell again cited that seeing rate cuts is appropriate at some point this year. However, Atlanta Fed president Raphael Bostic had more hawkish comments about the current situation. He thinks that one cut might be…
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03Apr 2024 by Cattolica Investment Club No Comments
GENERAL ELECTRIC’S BREAK-UP FINALLY COMES TO AN END,  WHILST RIVIAN EXCEEDS MARKETS’ FORECASTS 

GENERAL ELECTRIC’S BREAK-UP FINALLY COMES TO AN END,  WHILST RIVIAN EXCEEDS MARKETS’ FORECASTS 

Daily in Portfolio Management
April 2nd, 2024 - General Electric (GE) recently terminated its break up process through which 3 different companies  were created (GE Healthcare, GE Aerospace and GE Vernova that came to life at the beginning of  2023). This huge operation was announced in late 2021, after GE saw its dimension increasing hugely  thanks to an important diversification strategy carried out before the beginning of the breaking up.  The latter was the culmination of a strategy aimed at helping GE facing the consequences of the 2008  global financial crisis that heavily affected GE Capital, the most relevant division of the company. GE  began trading as separate entities on Tuesday, with Larry Culp (CEO of GE Aerospace) and Scott Strazik  (CEO of GE Vernova) who rang the NYSE opening bell. Analysts currently estimate…
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02Apr 2024 by Cattolica Investment Club No Comments
THE AI BOOM: AN ENERGY ISSUE

THE AI BOOM: AN ENERGY ISSUE

Daily in Portfolio Management
April 1st, 2024 - The upsurge in demand for energy to power data centers, therefore the amount of the latter required to fuel the ongoing AI revolution could lead to a “golden era” for natural gas, according to executives. Managers’ belief, strongly supported by data, is that renewable energy sources and batteries won’t be enough to cope with the soaring energy needs, and that fossil fuels will still play a crucial role in the energy landscape. The energy issue is widely controversial since the US Government is still providing incentives to developers of clean energy with the aim of bringing the carbon emissions of the electricity grid to zero; but at the same time, it looks like those won’t be able to bear the AI growing needs in the future…
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31Mar 2024 by Cattolica Investment Club No Comments
Tesla’s disappointing Q1: hits and misses

Tesla’s disappointing Q1: hits and misses

Daily in Portfolio Management
30th March, 2024 - In the rocky start of 2024, Tesla, the electric car giant, had a big drop. Its stock fell almost 30%, making it the worst in the S&P 500 index. This was very different from the larger market's good rise, with the S&P 500 going up by 10.2%, its best in a first quarter since 2019. Tesla had three main problems: not great predictions, more issues in the big Chinese market, and a series of controversial moves by the company's CEO, Elon Musk. At first, things seemed good for Tesla as it said it had record-breaking sales in Q4, with 485,000 cars, and met its year-end goal for 2023 with 1.8 million cars. But the good feelings from this were soon gone when the company said it…
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31Mar 2024 by Cattolica Investment Club No Comments
A DEEP DIVE INTO HUAWEI AFTER STRONG 2023 EARNINGS

A DEEP DIVE INTO HUAWEI AFTER STRONG 2023 EARNINGS

Daily in Portfolio Management
29th March, 2024 - As we announced recently in our article on the 26th of March, Apple (AAPL) (Purchased 0.6 units @ $183.96) is struggling to keep its position in the Chinese market because of changes in the national macro environment and strong competition from Huawei. The Chinese networking and electronics company reported stellar results for 2023, registering its fastest growth in the last four years. Huawei struggled in recent years because of the U.S. government banning their products in 2019 after accusing the company of being a security risk. The company also suffered China’s strict regulation during the pandemic and the chip reserves crisis in 2021. In 2023 though, revenue rose 9.63% from a year earlier to 704.2 billion yuan ($97.48 billion), mostly thanks to the consumer segment, growing…
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