Bitcoin has been on a remarkable ascent! It soared past the $72,000 mark on Monday 11th March 2024, setting a new all-time record.
This surge is attributed to a growing demand for new spot exchange-traded funds (ETFs), which have been approved for listing in the U.S. by some of the world’s largest financial firms.
The market for these ETFs is expected to reach $62 billion in the next two or three years. The cryptocurrency keeps surprising everyone with its value, which has grown to an amazing $1.42 trillion and is still rising… again!
Bitcoin moved off its all-time record shortly after achieving it.
UK chancellor Jeremy Hunt revealed the British ISA as part of the Spring Budget 2024.
The British ISA aims to boost demand for UK businesses and encourage investment in UK-focused assets.
Key Features
Additional Allowance
The British ISA provides a separate £5,000 annual allowance in addition to the existing £20,000 ISA allowance.
Tax Advantages
Like other ISAs, investors in the British ISA will not pay tax on capital gains or income.
Investment Focus
While it’s not yet clear whether the new ISA will be exclusively for UK shares, it is expected to support UK-focused funds and investment trusts.
Eligibility Uncertainty
The inclusion of UK gilts or UK corporate bonds remains uncertain.
Consultation Period
The consultation period for the British ISA runs until June 6, 2024.
Potential Impact – Reviving UK Stock Market
The British ISA aims to revive interest in the UK stock market, which has faced challenges since the Brexit vote in 2016.
Supporting UK Companies
By providing tax-free savings opportunities, the ISA encourages investment in UK businesses.
Fund Industry Support
Fund management firms, including Premier Miton, lobbied for the British ISA’s creation.
Historical Context
The British ISA draws parallels with its predecessor, the personal equity plan (PEP), which focused on UK shares and funds.
ISAs replaced PEPs in 1999.
Conclusion
In summary, the British ISA introduces an additional allowance for UK-focused investments, supporting savers and UK companies alike. Its impact on the stock market and investor sentiment remains to be seen, but it represents a step toward bolstering the UK’s economic landscape
By ensuring that companies are valued fairly, a stronger stock market will facilitate the capital raising process for companies that seek to grow and attract more listings. This will have a positive impact on the economy and employment and is ultimately in everyone’s interest.
According to recent analysis, Apple’s iPhone sales in China dropped some 24% in the first six weeks of 2024 compared to the same period last year.
Apple faces stiff competition from local rivals in one of its biggest markets.
Meanwhile, Huawei, a Chinese company, saw its sales soar by 64% in its home market during the same period, the analysis demonstrated. But we do not have sales data of other countries for comparison.
The report also said that overall smartphone sales in China shrank by 7% in the same period.
Huawei, which suffered for years from US sanctions, boosted its sales after launching its Mate 60 series of 5G smartphones in August 2023.
Is this a worry for Apple, after all, the iPhone is Apple’s flagship product? Also, Apple recently junked its electric vehicle project and has been left behind in AI. Is the crown ever-so-slightly slipping?
Apple 3 month share price with 50 day moving average
Apple 3 month share price with 50 day moving average
Figure AI is a robotics company that aims to create the first commercially viable humanoid robot. The plan is for the robot to perform various tasks in different industries.
Brett Adcock, a former software engineer and entrepreneur, founded the company in 2023. He envisioned a way to enhance the quality of life by integrating artificial intelligence (AI) and humanoid engineering.
Figure AI, a startup that has created a humanoid robot for commercial use, has secured $675 million in funding. Some of the investors include Jeff Bezos, Nvidia, Microsoft and OpenAI.
The company plans to use the funds to speed up the development of its general-purpose robot, named Figure 01. This robot resembles and behaves like a human.
Figure AI was founded in 2022 and has been working on creating a versatile robot that can perform multiple tasks.
Flagship product
Figure AI’s flagship product is a human-like robot called Figure 01. This robot can mimic human appearance and motion. It uses sophisticated AI techniques to acquire new skills, adjust to changing situations, and communicate with its surroundings.
Figure 01 can perform tasks that require dexterity, mobility, and intelligence, such as manufacturing, logistics, warehousing, and retail. The humanoid robot is designed to work safely and efficiently alongside humans, complementing their skills and capabilities.
Figure 01
Investment
Some of the world’s leading technology companies, such as Microsoft, OpenAI, Nvidia, and Amazon, have invested in Figure AI.
The company also collaborates with BMW, a major global automaker, to use Figure 01 in its production facilities. Figure AI aims to transform the automotive industry by introducing more flexibility, productivity, and innovation to the manufacturing process.
Vision
The vision is for the company to build a future where humans and humanoids can coexist and cooperate to accomplish more than ever before.
Figure AI is to create humanoids that can help humans address the urgent challenges of the 21st century. These tasks will likely include climate change, population growth and social inequality. The company’s goal is to develop a versatile humanoid that can be marketed and accessible for everyone.
The relentless volatile march of Bitcoin continues… again!
Bitcoin jumped gain, edging ever closer to its all-time high after the rally took a breather over the weekend. Last week, Bitcoin surged $10,000 in the space of a couple of days.
It looks very much like the ETFs are kicking in during normal weekly trading moving Bitcoin other than just at weekends. The market also has an eye on the halving event due in April.
Bitcoin 7 day chart showing it above $69000 on 5th March 2024 – CoinMarketCap
Bitcoin 7 day chart showing it above $69000 on 5th March 2024– from CoinMarketCap.
Gold futures for April settled at $2126 per ounce, the highest-level going back to the *contract’s creation in 1974.
Analysts suggest that, adjusting for inflation, gold set an all-time high of approximately $3200 in 1980 and bodes well for big gold increases to come in the future.
Why is gold going up?
The outlook for interest rates. The Federal Reserve is expected to cut rates in 2024 to further stimulate the economy as the inflation fight comes to an end. Lower interest rates make gold more attractive as an alternative asset that does not pay any income.
The geopolitical and economic uncertainty. The U.S.-China trade and political tensions, the conflicts in the Middle East, the Russia/Ukraine war, other conflicts around the world and the upcoming U.S. presidential election are all sources of risk and volatility for the global markets. Investors seek gold as a safe haven asset that can preserve wealth and hedge against inflation.
The supply and demand dynamics. The demand for gold has been rising from central banks, investors, and consumers, especially in China and India, the world’s largest gold consumers. The supply of gold, on the other hand, has been constrained by the pandemic-related disruptions, environmental regulations, and declining ore grades.
Gold price as at 08:20 GMT 5th March 2024 in U.S. dollars per ounce
Gold price per ounce as at 08:20 GMT 5th March 2024in U.S. dollars
The above are some of the reasons why the price of gold is climbing to touch an all-time high. However, the future performance of gold may depend on how the economic and political situation evolves, as well as the market sentiment and expectations.
Gold is a complex and dynamic asset that can be influenced by many factors, both fundamental and psychological.
*Gold contract creation 1974
The gold futures contract for April 1974 was the first gold contract to be traded on the U.S. futures market, and it settled at $126.30 per ounce on its first day of trading. The contract was created after the U.S. ended the gold standard in 1971 and allowed the price of gold to fluctuate according to markets.
As tech giant Nvidia soars on hype around artificial intelligence (AI), and as global stock indexes claim record highs, debate has grown about whether the stock market has entered a ‘bubble.’
An AI bubble of boom
We are reminded of the dotcom bubble where investment was rife in anything tech – so, are we now potentially facing a new tech bubble – an AI bubble of boom?
That’s generally seen as a period in which asset prices inflate rapidly, potentially beyond their core value; and risk crashing just as fast.
Other AI stocks are chasing the dream too adding to the hype. However, some are in the slow lane playing catch-up and this may suggest there is much, much more to come.
The likes of AMD, Intel, Amazon, OpenAI, Arm and a myriad of other tech companies big and small have much more AI to bring to the tech table.
Let’s use Nvidia as an example of a potential stock bubble
If we look at the valuation of Nvidia, justifiably it is actually very high, too high even – that’s the first sign of a potential problem, valuation. The second issue is investor positioning – whenever you have a market bubble, investors are very clustered or very concentrated, either in one market or in one sector as a whole.
Nvidia one year chart as of 29th February 2024. Price 791
Nvidia one year chart as of 29th February 2024. Price 791
Sectors
It doesn’t matter which markets you look at – the U.S., Europe or Asia markets – the problem is the same. We now have an historic valuation between the tech sector, the AI sub-sector of the tech sector, and the rest of the market.
Investors are very clustered in this tech sector. However, some leading commentators say of tech that this is not hype – this is real. It most probably is, for now, and with much more to come from the smaller tech and AI companies that have yet to show their true AI value. But all bubbles burst in the end.
Pop!
There is certainly plenty of room for AI to grow – it’s in its infancy – but the question is: ‘how and when will the bubble burst? Because, in my humble opinion, it most certainly will.
We may not see a dramatic market crash like 1999-2000 or 2007/2008, but an investor rotation out of areas of concentration into the broader market will likely happen.
If you look at the bubbles of 1999-2000, and then in 2007/2008, one key characteristic was investor leverage. And we had, whether it was retail investors or institutional investors, a very high level of leverage, and that was either through borrowings or it was through derivatives.
The AI tech boom has legs but there will almost inevitably be a rotation from AI to other sectors – that will then adjust the overvalued AI sector. And it could pullback quite hard.
India is ‘easily’ the fastest growing economy in the world according to the IMF, as the country’s Q3 GDP growth soared past analysts’ estimates.
The world’s fastest growing major economy expanded 8.4% in the last three months of 2023.
8.4% GDP growth in Q3
At 8.4%, India’s economy expanded at its fastest pace in six quarters, data showed late Thursday, on strong private consumption and upbeat manufacturing and construction activity. Reuters estimates had pegged growth in the October to December period at 6.6%.
Prime Minister Narendra Modi posted on the social media platform X, that it shows ‘the strength of Indian economy and its potential.’
India economy due to jump ahead of Japan and Germany
India is forecast to leap ahead of Japan and Germany as the world’s third biggest economy in the next few years.
The better-than-expected growth was led by a strong performance by the country’s manufacturers, with the sector expanding by 11.6% in the period.
Private consumption, which makes up almost two-thirds of the country’s gross domestic product (GDP), also rose by 3.5%.
Japan’s Nikkei 225 index hit a new all-time high on Monday 26th February 2024. In contrast China markets slipped after a nine-day winning streak.
The Nikkei 225 ended 0.4% higher at 39233 comfortably above its previous closing record of 39,098.68. The index breached its 1989 all-time high of 38915 on Thursday 22nd February 2024.
Nikkei 225 hit new all-time high Monday 26th February 2024 – one year chart
Nikkei 225 hit new all-time high Monday 26th February 2024
Rolls-Royce, a prominent jet engine manufacturer for commercial aircraft along with power systems for ships and submarines and other major projects posted an underlying operating profit of £1.6 billion in 2023, compared to £652 million in 2022.
Rolls-Royce was the top performer in the UK’s FTSE 100 in 2023, climbing over 200% on the back of a profit forecast upgrade and the announcement in November 2023 that profits ‘could‘ quadruple by 2027.
The S&P 500 surged to a new all-time high on Thursday 22nd February 2024
Microchip maker Nvidia reported much stronger-than-expected quarterly results, lifting tech sector and markets higher.
S&P 500
The S&P 500 gained just over 2% to close at 5087, notching its best day since January 2023. The Nasdaq Composite advanced 2.96% for its best day since February 2023, closing at 16041 and ever closer to its all-time high.
Nasdaq
The tech-heavy index is very close now to its all-time closing high of 16,057.44.
Dow
The Dow Jones Industrial Average surged 456 points to surpass 39000 for the first time ever and close at a new high of 39069.
Shares of Nvidia climbed around 16% to an all-time high after the company said total revenue rose a massive 265% from a year ago.
Nvidia, which has become one of the largest U.S. companies by market capitalization, also forecast another stellar revenue gain for the current quarter.
The excitement surrounding artificial intelligence (AI) technology appears to show few signs of abating
The technology company at the heart of the AI chip boom reported its Q4 earnings after the stock market’s close on Wednesday 21st February 2024, beating expectations for both earnings and sales. The company’s total revenue is up 265% from a year ago.
Investors are looking to Nvidia’s latest quarterly earnings report to see whether the company’s meteoric growth can last.
Nvidia one year share price as at 22nd February 2024
Nvidia one year share price as at 22nd February 2024
AI chips
Nvidia makes powerful computer chips that power popular AI tools like OpenAI’s ChatGPT and Microsoft’s Copilot. High demand for those chips has propelled the company into the exclusive trillion-dollar club.
As of market close on 21st February 2024 the company’s market cap sat at $1.667 trillion, putting it behind Alphabet’s $1.779 trillion market cap. It’s also behind Microsoft and Apple, which hold market caps of $2.988 trillion and $2.819 trillion, respectively.
Nvidia’s stock price has been on an upward trajectory so far this year. Shares have gained by nearly 40% since the beginning of 2024. On top of that, they’ve soared by over 225% in the last 12 months.
Although short-term demand for Nvidia’s AI chips has been strong, major companies such as Microsoft and Meta have indicated interest in buying them from other companies.
If you had invested $1,000 in Nvidia
If you had invested $1,000 in Nvidia five, 10 or 24 years ago, here’s how much your investment would be worth now.
$1,000 in Nvidia five years ago, your investment would have increased by an eye-watering 1,015% and be worth around $17,542 as of 20th February 2024.
If you had invested $1,000 in Nvidia 10 years ago, your investment would have soared by about 22,340% and be worth around $148,226 as of 20th February 2024.
But, if you had invested $1,000 in Nvidia in January 1999, when Nvidia first went public, your investment would have grown by around 277,708% and be worth close to $2,784,065 as of 20th February 2024.
Japan’s Nikkei 225 hit a record high of: 39098 on Thursday 22nd February 2024.
The rally was propelled by electronics, banking and consumer stocks as robust earnings and investor-friendly measures fuel a blistering rally in Japanese equities.
The Nikkei 225 jumped 2%, surpassing the previous record high of 38,915.87 reached in 1989.
Standout performance
Both the Nikkei and the broader Topix have been standout performers in Asia up more than 10% so far in 2024 after surging more than 25% in 2023. Their best annual gains in at least a decade.
Japan Inc’s solid third-quarter corporate earnings have prompted Bank of America analysts to upgrade their 2024 year-end forecasts for the Nikkei 225 to 41000 from 38500. They raised their forecasts for the Topix to 2,850 from 2,715.
The rally has also been supported by a weaker yen.
The Magnificent Seven, or MAMA ANT, is a term coined by Bank of America to describe the seven most dominant tech companies in the world
The Seven are: Microsoft, Amazon, Meta Platforms, Apple, Nvidia, Tesla, and Alphabet. These companies have not only led the tech sector in terms of innovation, growth, and profitability, but have also become some of the most valuable entities in the world by market capitalization.
Valuation at $15 trillion
Market capitalization, or market cap, is the total value of all the shares of a company that are traded on the stock market. It reflects the market’s perception of the company’s future prospects and earnings potential.
As of January 2023, the Magnificent Seven had a combined market cap of about $15 trillion, which was more than the gross domestic product (GDP) of almost every country in the world, except for the United States, China and Japan (just).
Magnificent Seven
The Magnificent Seven have achieved such a remarkable feat by leveraging their core competencies in various fields of technology, such as artificial intelligence (AI), cloud computing, social media, e-commerce, gaming, electric vehicles, and online advertising. They have also diversified their revenue streams by acquiring or developing new products and services, such as Activision Blizzard, AWS, Oculus, iPhone, GeForce, SpaceX, and YouTube. They have also benefited from the increased demand for digital solutions amid the Covid-19 pandemic, which accelerated the adoption of online platforms, remote work, and entertainment.
Challenges
However, the Magnificent Seven also face some challenges and risks that could threaten their dominance and valuation. These include increasing competition from other tech companies, especially from China, such as Alibaba, Tencent, Baidu, and Huawei.
They also face regulatory scrutiny and pressure from governments and consumers over issues such as antitrust, privacy, taxation, content moderation, and environmental impact. Furthermore, they may encounter technical difficulties, security breaches, or ethical dilemmas that could damage their reputation and customer trust.
Conclusion
In conclusion, the Magnificent Seven are the most powerful and influential tech companies in the world, and their market cap surpasses that of almost every country in the world.
List of 10 countries by stock market capitalization
List of 10 countries by stock market capitalisation
The meteoric rise in the profits and market capitalisations of the Magnificent 7 U.S. tech giants: Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia and Tesla – outstrip those of all listed companies in almost every G20 country. Of the non-U.S. G20 countries, only China and Japan (and the latter, only just) have greater profits when their listed companies are combined.
They have achieved this by exploiting their competitive advantages in various domains of technology and expanding their offerings and markets. However, they also need to overcome some challenges and risks that could hamper their growth and value in the future.
A forced size reduction to stop the monopolising of market share could help tame these beasts too and open up fairer competition.
Should we worry?
Basically, yes, we should be concerned about the size and dominance of these companies.
This level of wealth and power concentrated in just a handful of companies has led some analysts to voice concerns over related risks in the U.S. and global stock markets.
Economists and stock market analysts have cautioned that the U.S. stock market is rivalling 2000 and 1929 in terms of being at its most concentrated in history.
Shares of cryptocurrency exchange Coinbase soared 12% Friday 16th February 2024 after the company reported its first profit in two years.
Coinbase, the largest U.S. venue for buying and selling cryptocurrencies, said that net income totalled $273 million in Q4.
This is the first time that the company has reported positive net income since the fourth quarter of 2021.
Net revenue
Coinbase reported its net revenue was $905 million in the Q4 of 2023, up almost 50% from $605 million in the same period of the previous year.
Bitcoin ETFs
Cryptocurrencies saw a huge amount of interest from investors in the fourth quarter of 2023, following news of the U.S. Securities and Exchange Commission approving the first Bitcoin exchange-traded funds (ETFs).
Bitcoin ETFs enable retail investors to access the cryptocurrency as a share that’s traded on a regulated exchange without directly exposing them to the underlying asset.
The news has driven demand for cryptocurrencies due to anticipation that it could drive interest from retail investors.
The value of all the Bitcoin market capitalization, on Wednesday 14th January 2024 climbed above $1 trillion for the first time since late 2021, according to CoinMarketCap data.
Bitcoin also broke through the 51000 level, marking the first time it has hit this value since December 2021.
The price rise continues a rally that began in January 2023. Bitcoin is up more than 21% in 2024 so far.
One year Bitcoin chart
One year Bitcoin chart from March 2023 to February 2024 – CoinMarketCap
Jeff Bezos filed a statement indicating his sale of nearly 12 million shares of Amazon stock worth more than $2 billion
The Amazon executive chairman notified the U.S. SEC – Securities and Exchange Commission of the sale of 11,997,698 shares of common stock on the 7th and 8th February 2024.
The collective value of the shares of Amazon, which is based in Seattle where he founded the company in a garage around thirty years ago, was about $2.04 billion.
More to come
In a separate SEC filing, Bezos listed the proposed sale of 50 million Amazon shares on or around 7th February 2024 with an estimated market value of $8.4 billion.
Taxing decision?
Jeff Bezos moved from Seattle to Miami in November 2023, shortly before he announced his plan to sell up to 50 million Amazon shares by January 2025.
Florida does not have a capital gains tax, unlike Washington state, which imposes a 7% tax on any gains of more than $250,000 from the sale of stocks and bonds. Therefore, by moving to Florida, Bezos could save up to $600 million in taxes on his stock sale – more than enough for a luxury yacht and 2 or 3 more luxury properties.
But, of course, we do not know if this was the real reason for his move.
Arm’s strong growth forecast has led investors to declare it an AI darling
Arm shares soared 29% on Monday, extending last week’s rally as investors continue to applaud the chipmaker’s better-than-expected third-quarter earnings and its position in the artificial intelligence boom.
Up 93% since 8th February 2024
Arm is now up 93% since it reported quarterly figures on 8th February 2024. There is no obvious reason for the 29% climb on Monday. The fear of missing out (FOMO) could be playing a part in the meteoric share price move.
The stock has almost tripled since Arm’s initial public offering in September 2023, closing at $148.97 and is now worth almost $153 billion, that’s a little more than $30 billion below Intel’s market cap.
Arm 1 year chart showing huge gain in February 2024
Arm 1 year chart showing huge gain in February 2024
AI demand fuels Arm’s success
Last week, Arm said it could double the price for its latest instruction set, which accounts for 15% of the company’s royalties, suggesting it can expand its margin and make more money off new chips. It also said it was breaking into new markets, such as cloud servers and automotive, due to AI demand.
Its royalty strength combined with Arm’s optimistic growth forecast has made the company the latest AI darling among investors, despite a higher earnings multiple than Nvidia or AMD.
The index continues its march breaking all-time records on its way
The index continues on its march breaking all-time records on its journey
Nasdaq 100 climbs to new record 9th February 2024
A solid earnings season, easing inflation data and a resilient economy have charged 2024′s market rally. It has helped propel the Nasdaq 100 to close at these new highs!
We are enjoying good news at an economic and earnings level, and the market is reacting positively. The longer the good news story plays out, the more likely it will be that the market will hold from here.
FOMO or the fear of missing out is likely playing its part here too.
The S&P 500 climbed to a new all-time high of 5026 on 9th February 2024
Stocks rose on Friday 9th February 2024 after December’s revised inflation reading came in lower than first reported, and the S&P 500 closed above the key 5,000 level as strong earnings and economic news came in.
A solid earnings season, easing inflation data and a resilient economy have charged 2024′s market rally. It propelled the S&P 500 to close above the 5,000 level after first touching the milestone during the trading week. The index first crossed 4,000 in April 2021.
We are enjoying good news at an economic and earnings level, and the market is reacting positively. The longer the good news story plays out, the more likely it will be that the market will hold from here.
But it won’t take much to spoil the party, right now I don’t know what that might be…?
S&P 500 1-year chart 9th February 2024 – new all-time high of 5026
S&P 500 1 year chart 9th February 2024 – new all-time high of 5026
FOMO or the fear of missing out is likely playing its part here too.
After a decade-long bull run throughout the 1980’s, the Nikkei 225 index reached an all-time high of 38,915 on December 29, 1989, the last trading day of the year.
Few could have imagined, on New Year’s Eve of 1989, that the index would be lower 34 years later. As the New Year arrived, the bubble burst.
And now, Japan’s stock markets are on a tear and closing in on that elusive 38195 high of 1989 – but there’s a catch – the Zombies are coming.
Zombie companies
Zombie firms are businesses that are unprofitable and struggling to keep afloat. They don’t have excess capital to invest and grow the business, or to pay down the loan capital.
Concerns about zombie firms are coming into focus as the Bank of Japan is tipped to raise interest rates in 2024 for the first time since 2007.
It comes as the Nikkei 225 rises to its highest point in almost 34 years
Japan’s stock markets have been on a meteoric run since the start of 2023, repeatedly breaching 33-year highs and outperforming the rest of Asia.
However, there are rising concerns that so called ‘zombie’ firms, which are unprofitable and struggling to keep afloat, could cut short that rally. The Bank of Japan is widely expected to raise interest rates this year, and that could easily tip many of these firms into bankruptcy, which could have a broader impact on the economy and stock market,
Nikkei 225 1-year chart 9th February 2024
Nikkei 225 1-year chart 9th February 2024
Bankrupt businesses
Zombie firms are nothing new in Japan. They first emerged after the stock ‘bubble’ and subsequent crash of the 1990s, when banks continued to support companies that would have otherwise gone bankrupt.
The pandemic of 2020 accelerated the problem of zombie businesses, with the number of zombie firms in Japan reportedly jumping by around 33% between 2021 and 2022.
At the end of 2023, Japan reportedly had around 250,000 companies that are technically zombie businesses
Some experts argue that zombie firms are a drag on Japan’s productivity, innovation, and growth, as they occupy resources and crowd out more efficient firms. The debate on how to deal with zombie firms is ongoing and may have implications for Japan’s economic recovery and future prospects.
Others suggest that zombie firms may have a positive effect, such as preserving employment, social stability, and industrial diversity.
Surely, there is no room for inefficiently run businesses making little or no profit in any economy.
U.S. stocks have had a good year in 2023, and a great start to 2024 with new record highs being set.
Many major indices have recorded double-digit gains. However, some analysts have warned that the rally may not last, as it has been driven by a few large-cap technology and growth stocks, while many other sectors and regions have lagged behind.
A stock market rally is a broad and rapid rise in share prices, often defined as a 20% increase from a recent low.
This could indicate a lack of breadth and sustainability in the rally, and potentially signal a market pullback, correction or even a crash in the future.
Bull bear, bull?
Chartists with their technical analysis might see a pattern that points to a substantial upside, but they should not get too carried away with their own observations, right now would be a sensible time for markets to find level ground, if only temporarily.
The bullish view is that the ‘laggards’ should catch up the ‘mega cap’ stalwarts once again. The bearish view is that the ‘mega cap’ stocks’ will realise they’ve gone too far and need to ride back to the rest of the market. Too few stocks in the same sector hold the balance of power – go check out the Magnificent 7 or even the old FANG stocks.
Catch-up
Either way, there ought to be an opportunity for underrepresented sectors and industries to gain lost ground.
The question is, will there be a pause to allow laggards to catch-up, or will the mega caps simply continue on their march?
The S&P 500 climbed again Wednesday 7th February 2024 and edged ever closer to the 5,000 level.
S&P 500 hit a new high of 4995
S&P 500 hit a new high of 4995 on 7th February 2024
The index, which first breached the 4,000 level in April 2021, added around 0.82% to close at 4,995.06. During session highs, the S&P hit 4,999.89. Quarterly results signalled a thriving U.S. economy.
The Nasdaq 100 jumped to a new high of 15,755
The Nasdaq 100 jumped to a new high of 15,755 on 7th February 2024
The Dow Jones Industrial Average rallied 156 points to close at 38,677 and an all-time high
DJIA closes at new high of 38677on 7th February 2024
Euphoric
Are investors getting swept away with the latest wave of AI related tech results? Quite possibly, as some of what we’re seeing could be based on FOMO (fear of missing out) as traders/investors don’t want to be left behind like they were last year.
However, one undeniable fact is that the U.S. economy isn’t facing as recession any time soon as predicted by many.
Facebook, the social media giant that connects billions of people around the world, celebrated its 20th anniversary on February 4, 2024.
Founded by Mark Zuckerberg and his fellow Harvard students in 2004, Facebook has grown from a college network to a global phenomenon, with over 3 billion monthly users and counting.
Facebook has also changed the way we communicate, share, and connect with each other online, enabling us to keep in touch with friends and family, discover new content and communities, and express ourselves freely.
Controversy
However, Facebook has also faced many controversies and challenges over the years, such as privacy issues, misinformation, child safety, and political scrutiny. Facebook has been accused of violating user data, spreading fake news and hate speech, enabling cyberbullying and online abuse, and influencing elections and public opinion.
How ‘the’ facebook looked 20 years ago
Facebook has also faced competition from other platforms, such as TikTok, Snapchat, and X, as well as regulatory pressure from governments and activists.
Evolving
As Facebook turns 20, it is still evolving and expanding under its parent company Meta, which also owns Instagram and WhatsApp. Meta’s vision is to create a metaverse, a virtual reality where people can interact and experience immersive digital worlds. Meta also aims to invest in artificial intelligence, blockchain, and cloud computing, as well as social good initiatives, such as connectivity, education, and health.
Facebook’s future is uncertain, but it is undeniable that it has shaped the history and culture of the internet and the world, for good and bad.
See BIG tech results here as Meta share price gains 20% after positive earnings impress Wall Street.
Mark Zuckerberg is currently the third richest person in the work coming with a wealth of $161 billion. Not a bad income for 20 years’ work.
