LoicInv @LoicInv: "The $SPX500 has completely recovered..."

United Kingdom

The $SPX500 has completely recovered in a matter of 2 weeks after the expectations of rate cuts from the FED have increased. The tech sector, in particular the big names of the $NSDQ100 have performed very well. There seems to be a lot of euphoria once again. These rate cuts are definitely a mistake as this will really pump more inflation into the system. We've been talking about it a lot but it seems that despite some days showing some trends towards it, the decorrelation of the commodities sector and the global market hasn't happened yet. We need to be patient. $GOLD had some good days recently and this is barely catching up with the global markets. There has been $IBP (Installed Building Products Inc) sign of further weakening of the chinese economy, more due to the fact that the demand elsewhere is falling. It might recover with interest rates being cut. Let's see what happens. It seems foolish to me to be concentrated in tech stocks but I prefer low PE, low debt stocks like the ones existing at the moment in the mining sector : we like $VALE (Vale SA-ADR) , $BHP (BHP Group Ltd ADR) , $CCJ (Cameco Corp) , $GOLD.BARRICK (Barrick Gold) , $SHEL.L (Shell PLC) , $TTE.PA (TotalEnergies SE) and $CVX (Chevron) in particular. We also reentered a small short $TLT position as further rate hike expectations will boost the performance of commodities. We will keep an eye on that decorrelation $SPX500 against miners and it is very likely that this will happen but it is still in front of us. We expect a decorrelation event like in 2022.

13 Mentioned Show all