Current geopolitical events have created extreme volatility in markets, especially in stocks, including the magnificent seven (Amazon, Apple, Meta, Microsoft, Tesla, Nvidia and Alphabet – due to extreme AI infrastructure spending). Higher global inflation, exacerbated by the oil shortages caused by the Iran-Israel-US conflict, could see a slowdown in market growth.
“If inflation remains persistent while growth weakens, central banks are left with less room, households face more tightening, and investors enter a far more demanding market backdrop than many expected only weeks ago.” – Nigel Green, deVere CEO.
Fortunately, history has shown us that markets usually rebound, smooth out volatility and maintain growth over the long term. Markets have grown an inflation adjusted 1,076% increase since 1993.
But what should investors do over the short term?
There are still opportunities for investors to earn decent returns. Some sectors, like the defence industry, especially in Europe, where defence spending is expected to continue, are showing promise over the short to medium term. Gold remains a safe haven for investors and should continue to do well in current geopolitical events even after the recent sell-off.
And for those looking for steady returns, structured notes offer an income even when markets dip.
Huawei’s new AI chip is giving Nvidia competition in China. Testing of Huawei’s chip, designed to challenge Nvidia in the Chinese market, has made good headway in its testing phase, leading to giants like Alibaba and ByteDance planning to place orders.
Tech firms, hesitant to use Huawei’s previous chips, are showing interest now as its 950PR chip is more compatible with Nvidia’s CUDA software system and has better response speeds.
The chipmaker plans to ship around 750,000 950PRs this year.
Can Huawei take advantage of Nvidia’s ban from selling its most powerful chips to China?
Please note, the above is for educational purposes only and does not constitute advice. You should always contact your adviser for a personal consultation.
* No liability can be accepted for any actions taken or refrained from being taken, as a result of reading the above.