ECB Cuts Interest Rates by Quarter Point; Novo Nordisk Breaks 52 Week High
For the first time since 2019, European Central Bank cut interest rates from 4% to 3.75%. Further cuts or direction will be decided based on economic data. In several articles, it was mentioned that there will be some difficulty managing the gaps between EU and US rates. It is somehow a good start to future expansionary policy but if not properly supported would lead to elevated inflation. If the move will continue to additional cuts it will have positive long term impact to our stocks as portfolio is heavy on European stocks. $HEI.DE (HeidelbergCement AG) , $FGR.PA (Eiffage SA) , $DG.PA (Vinci S.A), $MTS.MC (ArcelorMittal)
We’ve seen $NOVO-B.CO (Novo Nordisk B A/S) move to all time highs again after progress of clinical trials of Ozempic main ingredient, semaglitude, have proven to reduce chronic kidney disease. The clinical trials have shown 24% lower chronic kidney disease and 18% lower cardiovascular diseases. Novo Nordisk have 8% share in the overall portfolio now moving near 300% gain after 3 years of holding.
Popular Investor Status Change
You might notice the change of my PI status from Elite to Champion. There have been changes in the program and some of the requirements are now higher. I’ve decided not to chase the higher requirement thru capital infusion and let organic growth reach that level. Strategy is still the same, use fundamenal analysis to achieve consistent growth at the same time applying effective risk management.
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