Best Investment Right Now
A lot was going on in the markets this week.
Anthropic is preparing for its IPO listing. (Will there be a big shake-up as with SpaceX?)
Analysts are giving Anthropic an 84% chance of hitting a $2 trillion market cap by the end of October as they try to hit the bull run.
Competitor OpenAI has prudently decided to hold off till next year to list.
As forecast, the US Government bought their own debt with debt (basically using your credit card to pay off your loan). It’s not just in the US. The markets are seeing a sell-off in government bonds in Japan, Germany, and the UK.
Global bond yields are hitting their highest in 20 years. Great for savers, bad for mortgages.
Massive government debt, fears of inflation staying higher, as well as the massive Big Tech AI spend, are causing concerns. How will it affect us?
Mortgages and loans will be affected, and credit risks are increasing with Government spending. The unresolved Iranian conflict in the Middle East and the Russia-Ukraine war in Europe are two examples of seemingly never-ending disruptions that are pushing up oil, gas and fertiliser prices, among other things.
This massive sell-off had a positive effect on the markets for a day, and then pushed markets even lower. We are currently seeing major market volatility.
“There is now competition. Instead of the only place to go, equities, people can now invest in fixed yield and get a return without the risk” – Nigel Green, deVere CEO.
Nigel believes structural changes are happening in the market. Cheap money is over. It’s a stock-pickers market.
As the cost of money changes, so does the investment landscape. Understanding how the investment landscape has changed is one of the most important steps in building a portfolio for the future.
Pharmaceutical giant Moderna’s stock doubled this week after positive feedback on its melanoma cancer vaccine. The experimental drug has the potential to reduce the risk of Melanoma returning and reduce the risk of cancer spreading into the rest of the body. The personalised mRNA-based vaccine can be produced specifically for each cancer patient to target specific mutations.
While Moderna has catapulted the healthcare sector back onto the radar, Pharma, biotech and life sciences have been steadily gaining ground. The iShares Biotechnology ETF (IBB) has gained over 20%.
Now is a good time to review your portfolio and consider new opportunities in the market. Always stay diversified and chat with a financial adviser before making any investment decisions.
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.