17Apr 2024 by Cattolica Investment Club No Comments
GOLDMAN SACHS QUARTERLY RESULTS BEAT EXPECTATIONS: REDISCOVERING THE CORE BUSINESS

GOLDMAN SACHS QUARTERLY RESULTS BEAT EXPECTATIONS: REDISCOVERING THE CORE BUSINESS

Daily in Portfolio Management
April 15th, 2024 - In the first quarter, Goldman Sachs witnessed a 28% increase in profits, well beyond what analysts expected, as a result of their strong performances in these months. Bloomberg’s compiled analyst forecasts were nearly $1 bln short for the bank’s reported net income for the first three months of the year, which actually amounted to $4.1 bln, up from $3.2 bln a year earlier. The reason for this memorable achievement lies into the refocus led by the CEO David Solomon: he decided that it was time for Goldman Sachs to “play to their core strengths”, that is to say centering again on investment banking and trading businesses, asset and wealth management and slightly “put aside” the concern upon consumer business. Investment banking experienced its most successful quarter…
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12Apr 2024 by Cattolica Investment Club No Comments
Wholesale inflation report pushes markets forward

Wholesale inflation report pushes markets forward

Daily in Portfolio Management
April 11th, 2024 - Tech giants led a stock rally on Thursday as investors weighed encouraging wholesale inflation data against yesterday’s harrowing price report. The Nasdaq surged 1.7%, while the S&P 500 gained 0.7% and the Dow Jones ended the day flat. Nike (NKE) have been under fire in the past months, with shares plummeting 25.34% in the past year. However, several BB (Bulge Bracket) analysts are currently reporting the probability for a pivot in the green. Today shares of the company increased 3% after the stock was upgraded at Bank of America. The last few years were quite rough for the company as it lost almost half of its value since mid-2021, but this might be the sign that better days are waiting ahead for the company and its…
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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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