Daily General Analysis
October 23, 2024
The latest news from the financial world never ceases to surprise me, especially the recent ones that demonstrate interesting dynamics in the global market. I will share some reflections on the events that, in my view, could significantly influence the global economy and investment opportunities.
First, it is impossible to ignore the phenomenal surge of SK하이닉스, which recorded a record increase in revenue and operating profit in the third quarter, driven by the growing demand for AI and HBM memory. This not only highlights the strength and innovation in the Asian technology sector but also points to the long-term potential of companies involved in the manufacturing of semiconductors and AI components. Investing in technology companies focusing on innovation in memory and AI could be a smart move, considering the sustainable growth of this segment.
The UBS forecast that the price of gold will reach $2,850 per ounce by mid-2025 suggests a continuous increase in the value of gold, which is a clear indication that the precious metal remains a reliable store of value, especially in times of geopolitical and economic uncertainty. This emphasizes the importance of considering gold as a diversified part of an investment portfolio, as well as exploring exchange-traded funds (ETFs) focusing on gold or gold miners to capitalize on this upward trend.
Furthermore, the rally of the US dollar with the imminent possibility of a "Trump comeback" to the US political scene reflects the intrinsic complexities of politics in the global economy. The strength of the dollar can mean a variety of things, from influencing emerging markets to impacting US exports. Investors may want to protect their portfolios against dollar volatility, perhaps by considering assets in other currencies or investments in gold as a hedge.
The IMF's stance that the global battle against high inflation is "almost won" is welcome news, suggesting potential for more stable economic growth ahead. This could be an indicator to look at growth assets, company stocks, and emerging markets that would benefit from a low inflation environment and strong economic growth.
I was particularly attentive to the news about the BRICS summit in Russia, aiming to challenge the dominance of the US dollar. Geographical diversification in investments, including alternative markets and currencies, could be a wise strategy to mitigate risks associated with dollar fluctuations.
Regarding cryptocurrencies and AI, the upward trajectory of open interest in Bitcoin and the agreement of Core Scientific in AI suggest fields of exponential growth. Investing in Bitcoin, Bitcoin ETFs, and companies at the forefront of AI may offer significant returns, albeit with associated high risks.
In summary, diversification remains key, both in asset classes and geographically. Gold, technology (especially AI and semiconductors), and cryptocurrencies emerge as fields of interest. However, remember that these areas come with their specific risks, and careful analysis and continuous monitoring are essential for investment success.
