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Daily General Analysis

January 25, 2025

Recent information reveals a series of significant events that may have a profound impact on the international financial market. Starting with the S&P 500, which recorded the best performance for the beginning of a presidential term since 1985. This fact points to strong optimism in the world's largest stock market, potentially indicating continued confidence in the economic and business environment under the current US administration.

On the other hand, the Trump administration's decision to halt almost all foreign aid, except to Israel and Egypt, may reverberate through geopolitical and economic spheres, affecting not only international relations but also emerging markets that depend on this aid.

In an intriguing development, the price of gold surged, reaching a new historical record of $2,774 per ounce. This reaffirms gold's status as a safe haven asset, especially in times of economic uncertainty or financial instability, attracting investors seeking security.

Trump's foray into the world of cryptocurrencies, specifically his support for certain stablecoins as a means to safeguard the dollar's supremacy, is noteworthy. This not only increases the visibility and potential adoption of these cryptocurrencies but also raises questions about the future role of digital money in the global financial system.

Ukraine claiming an attack on a Russian oil refinery with drones highlights not only the ongoing tension between the two countries but also the potential impact on global oil prices and energy security. This follows the news of the US involvement in a financial war against Russia, potentially further inflaming tense relations and affecting the energy market.

In the technology field, major investments in artificial intelligence (AI) by giants like Meta and biotechnology collaborations between Tevogen Bio and Microsoft indicate a growing focus on innovation and technological development. AI, in particular, is set to be a key growth sector and an area of interest for investors.

Insights and Investment Suggestions:

1. Technology and Artificial Intelligence: With Meta and other tech giants planning significant investments in AI, companies at the forefront of AI innovation represent good investment options. Additionally, biotechnology and health, especially those collaborating with tech companies to innovate, like Tevogen Bio, offer promising opportunities.

2. Cryptocurrencies and Stablecoins: Trump's support for certain stablecoins suggests a growing area of interest. Investments in companies like Tether and Circle may be considered, given their potentially strengthening alliance with the US government.

3. Energy and Commodities: With ongoing tension between Ukraine and Russia affecting the energy sector, diversified energy and commodities companies, including gold, deserve attention. Given the rise in the price of gold, investing in funds holding physical gold or gold mining companies may be a prudent strategy.

4. US Stock Market: The robust performance of the S&P 500 signals a potentially positive investment environment in the US. ETFs tracking the S&P 500, or stocks of companies with strong representation in this index, may be a safe and profitable option.

Risks to Consider:

- Geopolitical Instability: Tensions between Ukraine and Russia, as well as controversial foreign policies of the US, may bring volatility to the markets.

- Inflation: A significant increase in the price of gold may be an indicator of inflation concerns, which could negatively affect certain sectors.

- Cryptocurrency Regulation: Regulatory uncertainty surrounding cryptocurrencies remains a significant risk.

In summary, a diversified investment strategy, encompassing technology, commodities, cryptocurrencies, and shares of well-positioned American companies, seems prudent given the current economic and geopolitical landscape. As always, it is crucial to closely monitor these developments and adjust investment strategies as necessary.

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