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Welcome to our blog – a place to discuss and exchange thoughts and ideas about iX-7 Asset Management SA, the stock markets and all matters relating to wealth management.
The US jobless rate climbed to a two-year high in February. However, hiring remained fairly healthy indicating a resilient labor market, which is positive for consumers overall.
In the market, traders and investors soften their stance on some equity valuations that may have gone too far in the short run. Stock prices for a few technology companies came under pressure while the past darling of the market, Tesla, continued its slump.
On the other hand, Consumer Staples stocks such as Kroger, Target, and Burlington Stores (quarterly sales are up by more than 14% in the quarter) nicely moved ahead upon publication of their quarterly EBITDA and profit pre-estimates. This confirms the situation in the job market and the fact that inflation has topped out for now.
In the Crypto Market, Bitcoin reached $70k for the first time since late 2021. The increased trading activity is good news for marketplaces such as Coinbase Global which racked up to above $ 255.- per share. Yet, the share price is still down by around 25% since its IPO some 3 years ago. The under-performance can be explained in two ways: Crypto-winter started shortly after its hyped IPO and the digital currency market and its platforms came under increased compliance and regulatory pressure from the governing bodies. Have the fundamentals changed for the crypto market, the future will tell us.
Knowledge is power.
