Category: Daily in Portfolio Management

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…

Jan 24th, 2024 - The Dow Jones fell 26 basis points today, whilst the NASDAQ and S&P 500 instead grew 0.36% and 0.08% respectively, as Nvidia and other large cap tech companies continue their meteoric rise. Portfolio holding IBM (IBM) (Purchased 0.1693 units @ $151.04) rose today, increasing more than 5% in the post market following the release of their fourth quarter earnings. The company netted $3.3 billion in income or $3.55 per share, with expectations being $2.9 billion in income and $2.96 per share. The firm’s executives cited a sharp increase in Artificial Intelligence demand as the backbone to this outstanding quarterly performance.  Furthermore, portfolio holding Nvidia (NVDA) (Purchased 0.2773 units @ $471.73) further rallied today, adding 2.49%. The company has performed phenomenally so far this year, and has…

Jan 23rd, 2024 - Today, Johnson & Johnson (JNJ) reached an important agreement to end an investigation conducted by more than 40 states. The investigation accused the New Jersey based company of false disclosures regarding the real dangers to one's health health deriving from the use of its talc-based products. By the way, this does not solve the high number of accusations from Johnson & Johnson consumers, according to which the talc-containing products were the main cause of cancer for them. Many of these civil lawsuits will go on trial during the course of 2024. So, it seems like the company just admitted its responsibilities in causing serious diseases to its customers because of its products. As a result, J&J stock price dropped by 1.64% at 16:00 EST.  As reported by a regulatory…

Jan 22nd, 2024 - The financial markets are on edge as they grapple with the potential structural implications of Donald Trump's proposed 10% tariff increase on all imported goods. Michael Every, a global strategist at Rabobank, asserts that this move has the power to "shake up every asset class." Trump, a leading contender for the 2024 Republican nomination, aims to triple the government's intake by imposing these tariffs, intending to boost American domestic production. Criticism of the policy is bipartisan, with Treasury Secretary Janet Yellen acknowledging that it would raise the cost of various goods for American businesses and consumers; the Tax Foundation estimates an annual tax increase exceeding $300 billion for U.S. consumers, potentially triggering retaliatory tax hikes by international trade partners. The American Action Forum predicts a 0.31%…

Jan 21st, 2024 - A recent Morgan Stanley survey revealed that Individual investors are increasingly optimistic, with 60% expressing bullishness. The optimism is linked to expectations of Federal Reserve rate cuts. About 60% believe in a "soft landing" for the economy, and 58% see the economy as healthy enough for rate reductions. Despite the Fed signaling cuts, Chris Larkin from E-TRADE at Morgan Stanley urges patience due to modest stock market performance. The survey indicates 42% of investors won't change portfolios, 26% will, and 18% plan to shift from cash. Inflation (49%) is the top concern, followed by the presidential election (26%) and a potential recession (24%). Apple (AAPL) must stop the sale of Apple Watches. The U.S. Court of Appeals for the Federal Circuit has rejected Apple's request to…

Jan 20th, 2024 - OpenAI CEO Sam Altman's key to success: be direct, embrace rejection, and take calculated risks OpenAI CEO emphasizes the importance of being clear about one's goals and asking directly for what is wanted, as it significantly contributes to success. Altman believes that fear of rejection often restrains people from expressing their needs, leading to unfavorable outcomes.  Altman's advice aligns with research indicating that people tend to underestimate others' willingness to help or say "yes" to requests. The fear of rejection and the tendency to spend time in ways that do not coincide with personal desires are common obstacles to achieving one's goals.  Altman's philosophy revolves around being "willful," a trait he considers key to success. He encourages individuals to challenge the status quo and not passively…

Jan 19th, 2024 - The S&P 500 has reached its all-time high on Friday thanks to a rally by tech companies, which are now rising after a wobbly start of the year. Nvidia (NVDA) (Purchased 0.2773 units @ $471.73) was one of these companies that rallied, in fact the chip-maker company has hit itself its all-time high, thanks to the Meta CEO Mark Zuckerberg that said in an Instagram reel that he is investing billions in Nvidia’s chips to improve his AI infrastructure.  About the chip-maker companies, it is important to underline that OpenAI’s CEO Sam Altman is raising funds in order to create a network of factories to produce semiconductors. Altman’s fundraising push reflects his concern that as AI becomes more interesting everyday for individuals and companies, there won’t…

Jan 18th, 2024 - Tech companies powered the market Thursday and pulled the major averages into positive territory. The Dow Jones grew 0,54% closing at 37,468.41, also the tech-heavy NASDAQ jumped by 1,35% to close at 15,055.65. The S&P 500 climbed 0.88% ending at 4,780.94. Lucid (LCID) stock started the day losing again ground with the share price being down 7.2% at 2:30 p.m. ET. This happened after yesterday news hit that Tesla cut again the price of their Model Y in Germany and other european countries, this move was seen as a negative sign for the overall demand of EV in the market. Lucid stock followed the pullback that is affecting multiple companies in the industry. The company focuses on the high end portion of EV, priced higher than…

Jan 15th, 2024 - In a watershed moment for the cryptocurrency sector, Circle’s CEO, Jeremy Allaire, expresses confidence that 2024 could see the United States implementing crucial regulations for stablecoins, such as the widely-used USD Coin. The stablecoin market is currently valued at $135.3 billion and is operating largely in an unregulated landscape, it is easily understandable that such possibility is becoming more and more palpable. The CEO of Circle firmly believes that the U.S. have never been this close to the actual implementation of laws governing stablecoins: speaking at the World Economic Forum in Davos, Allaire noted a significant shift in global regulatory trends and optimistically supported this prediction. Also, he emphasized a clear desire from the U.S. administration, Treasury, Federal Reserve and both houses of Congress to establish…

Jan 14th, 2024 - BlackRock (BLK), the world's largest asset manager, with 70 offices in 30 countries, and clients in more than 100 countries, is acquiring Global Infrastructure Partners for $12.5 billion, with $3 billion in cash and 12 million shares. Together, the companies will manage assets worth more than $150 billion, creating an infrastructure fund that will rival the industry’s largest players. The CEO Larry Fink sees it as pivotal for retirement savings. The deal coincides with BlackRock's Q4 results, crossing $10 trillion in assets. Despite shares dipping 0.8% to $786.64, they've grown 4% in the past year. The transaction, enhancing BlackRock's role in high-coupon, inflation-protected investments, is set to finalize in Q3 2024. BlackRock also announced the creation of a new unified Global Product Solutions group that will…