Jan 11, 2023

Individual investors are often bombarded with specific stock calls and targets.

However, we believe you can get a better medium to long term perspective by considering asset class, sector, thematic and macro economic views.

To help you, every week, we pour through the research produced by some of the larger institutions, and summarize their market thoughts.

Below are this week’s 3 updates:

Infrastructure, Clean energy, and Electric Vehicle ETFs boosted by U.S. Inflation Reduction Act and U.S. Infrastructure Investment and Jobs Act which will direct over $1.5trillion government spending towards these sectors in 2023 and beyond. Cybersecurity and Robotics ETFs appeal given cybersecurity's shift from niche to necessity and robots are mission critical in fighting supply chain challenges, labour shortages and inflation. 

November Real GDP to confirm UK in recession, but shallower than current forecast. China's rapid reopening to boost to EM Asia, but may be offset by cooling global growth and capital diversion from China. Euro area economic data more resilient than forecast and a directional improvement in leading indicators, with upside risks to Q4 growth forecast. 

Deutsche Bank
S&P 500, MSCI World AC, Euro Stoxx 50 down around 20% 10% and 5% in January respectively. MSCI AC Energy returned 34.5%. Three worst sectors (IT, Consumer Discretionary and Communication Services) all lost >30%. Biggest winners of Stoxx 600 were Defence companies (one company gained 127%). Growth stocks record declining sales and margins, reflecting operational difficulties and supposedly risk-free government bonds yields rising. 

* Please note these are not the thoughts or analysis of illio but the respective institutions. We have summarized what we believe are key points. We assumes no responsibility or liability for any errors or omissions in the content of this site. The information contained herein is not intended to be a source of advice and the information contained in this website does not constitute investment advice.

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