Daily General Analysis
February 10, 2025
Today, while browsing online, I came across a series of news that may have significant impacts on the international financial market. Two of these news articles address the surge in the price of gold, which has reached historic highs. The demand for gold has been mainly driven by aggressive purchases by central banks amid geopolitical and economic uncertainties, solidifying gold as a safe haven investment.
Another news that caught my attention was the announcement by American tech giants regarding massive investments in Artificial Intelligence (AI), totaling over $320 billion by 2025. This 63% increase from last year indicates a growing focus on innovation and technological development. Additionally, France, under President Macron's leadership, announced substantial investments in AI, totaling €109 billion, highlighting a strong global trend towards digitalization and automation.
Lastly, a series of news highlighted President Trump's decision to impose 25% tariffs on all steel and aluminum imports to the US, suggesting an escalation in protectionist policies that could have significant implications for global trade and international relations.
Insights and market repercussions:
1. Gold as a safe haven investment: The rise in the price of gold suggests a period of increased caution among investors, who may be seeking protection against market volatilities. This could be a good time to consider allocating a portion of the portfolio to gold or gold-related ETFs.
2. Growing focus on AI: The massive investment in AI by tech giants indicates significant growth potential in technology-related sectors. Companies leading in AI, such as Nvidia, may offer promising investment opportunities. Nvidia, in particular, has already shown to be a "wealth-creating asset", as news highlight its long-term potential.
3. Impact of steel and aluminum tariffs: The implementation of tariffs may lead to higher costs for industries that rely on these metals, potentially affecting their profit margins and stock prices. However, it may represent an opportunity for US companies that produce steel and aluminum.
4. Sustainability as a keyword: With sustainability being highlighted as an investment trend for 2025, companies and funds that align with ESG practices may benefit from a growing flow of investments focused on sustainability.
Investment suggestions:
- Gold ETFs: An affordable way to benefit from the rise in gold prices.
- Stocks of leading AI companies: Companies like Nvidia and those involved in AI infrastructure in France.
- American steel and aluminum companies: For investors willing to bet on the local advantage provided by the tariffs.
- ESG funds: Aim to capitalize on the growing demand for sustainable investments.
Risks and opportunities:
Market volatility can be both a risk and an opportunity. Tariffs may lead to international retaliations and affect global trade, while investment in emerging technologies, such as AI, carries the intrinsic risk of rapid obsolescence or execution failures. However, focusing on sustainability and technological innovation can pave the way for new growth opportunities and portfolio diversification.
