Investments
Commented by Armin Schulz on September 12th, 2023 | 08:05 CEST
NVIDIA, Defense Metals, Alibaba - Tensions between China and the US are on the rise again
During the BRICS summit, it was announced that six new countries will join the alliance on January 1, 2024. These countries include Saudi Arabia, Iran, the United Arab Emirates, Argentina, Egypt, and Ethiopia. This development might not sit well with the United States, as it could threaten the dominance of the US dollar. In addition, there are tensions with China over Taiwan. In July, the Middle Kingdom limited exports of rare earths. China has now added fuel to the fire by banning government officials from using iPhones. Before this, the US restricted exports of NVIDIA's AI chips to the Middle East. Tensions are rising, making it a good time to look at three companies affected by these developments.
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Commented by André Will-Laudien on September 5th, 2023 | 07:10 CEST
Changing of the guard in the bull market - Deutsche Bank, TUI and Viva Gold can score!
The valuation on the capital markets has developed quite differently in recent months. The DAX 40 index is currently valued at a P/E ratio of only 12, but this ratio is almost 24 for the growth stocks on the NASDAQ. Some clearly state: "In the DAX, industrial stocks dominate, whereas in the NASDAQ, growth-oriented tech companies prevail." Technology stocks accelerate many times over, even in times of crisis, if the business model fits the times. Nevertheless, they are also subject to interest rate causality, i.e. if refinancing becomes more expensive, the return on equity demanded by investors also increases. In August, the 30-year US bond exceeded the 4.25% yield mark. Historically, this has often signaled a temporary end to the tech bull market. Many second-tier stocks appear to be unjustly neglected. We name three potential beneficiaries of an upward turn in interest rates.
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Commented by Nico Popp on August 28th, 2023 | 07:00 CEST
AI hype soon over? Deutsche Bank, NVIDIA, Globex Mining
In September 2022, NVIDIA and Deutsche Bank announced an innovation partnership focused on Artificial Intelligence (AI). The goal: to enhance and secure financial services. A lot has happened since last year's announcement. AI is seen as a productivity booster and "the next big thing." The prices of shares such as NVIDIA have also multiplied since then. This even makes partner Deutsche Bank uneasy. We highlight risks and show alternatives.
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Commented by Nico Popp on August 21st, 2023 | 08:00 CEST
China's shadow banks send first shock waves: Deutsche Bank, Allianz, Viva Gold
To many market observers, China was considered the true powerhouse of financial markets. Even when US growth was reaching its limits due to crises, the Chinese continued scoring points with growth rates well above the 5% mark. But the situation has changed. China is increasingly becoming a problem case. The Chinese real estate market is in a predicament. The situation surrounding project developer Country Garden could, much like in the case with Evergrande before, make waves internationally and put German financial institutions in a difficult situation.
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Commented by Armin Schulz on August 15th, 2023 | 05:50 CEST
Commerzbank, Viva Gold, Plug Power - What is next for the markets?
While the FED will probably take a break after its last interest rate hike to 5.5%, the ECB could be forced to turn the interest rate screw further, as inflation is only slowly declining. From May to June, the inflation rate in Germany climbed to 6.4%, only to fall back to 6.2% in July. The banking crisis seems to have been overcome after the turbulence between early February and mid-March. An end to the interest rate hike could have a positive effect on the gold price. Another catalyst is the meeting of the BRICS countries on August 22-24, which could decide on a new gold-backed currency. For growth companies, higher interest rates are poison as borrowed money is now much more expensive. We have selected one company from each segment.
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Commented by Stefan Feulner on August 15th, 2023 | 05:35 CEST
PayPal, Smartbroker Holding AG, Block - Fintech between hope and apprehension
After the record years in the times of the Corona pandemic and record trading revenues, companies from the fintech sector have since had to go through a tough correction and reduced the partly inflated valuations step by step. Analysts have also revised downward price targets that were far removed from the share price. As a result, many companies in the fintech sector are once again offering attractive long-term entry opportunities.
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Commented by André Will-Laudien on August 7th, 2023 | 07:55 CEST
Wild times - quarterly figures on the move! Tupperware, Defence Therapeutics, PayPal and Amazon under the magnifying glass!
After a pronounced summer rally on the stock markets, there have been individual setbacks in early August. It should come as no surprise that the reaction to quarterly figures can sometimes be more intense. Often, stocks have simply run too far and experienced a healthy consolidation; in the case of Tupperware, the opposite is probably the case. Here, too many speculators have positioned themselves on the short side, and there were hopeful reports. We analyze a few highlights of the last week.
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Commented by Armin Schulz on August 7th, 2023 | 07:00 CEST
BP, Saturn Oil + Gas, Shell - Gains due to rising oil prices
The price of crude oil rose again last week. While Brent went out of trading on Friday at USD 85.45, the price for WTI stood at USD 81.53 per barrel. This could just be the beginning, as both Saudi Arabia and Russia have cut back production, which has tightened supply. In addition, US oil reserves fell by an unprecedented 17.1 million barrels, the most significant drop ever recorded. Only the downgrade of the US credit rating weighed a little on sentiment. But the risk that this will weigh on the economy seems small. The FED has let it be known that interest rates are not to rise for the time being, inflation is falling, and many company figures are above analysts' expectations. We, therefore, look at three oil producers that benefit from a rising oil price.
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Commented by Armin Schulz on August 2nd, 2023 | 09:30 CEST
Barrick Gold, Desert Gold, Deutsche Bank - Revolution through a new gold-backed currency?
As expected, last week, the FED and the ECB raised interest rates by 0.25% each in an effort to further fight inflation. The US dollar also showed strength. These factors are typically considered negative signals for the gold price, yet gold futures recently rallied and are preparing to test the all-time high. What could be the reason for this? One possible explanation could be the meeting of BRICS countries in Johannesburg from August 22 to 24. There are rumors that the participants want to introduce a new gold-backed currency to compete with the US dollar. Such a move could drive the price of gold to unprecedented heights. Additionally, many central banks have been increasing their gold purchases recently.
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Commented by Armin Schulz on May 30th, 2023 | 10:00 CEST
Barrick Gold, Desert Gold, Deutsche Bank - What happens after the US debt ceiling is lifted?
In the US, the Democrats and Republicans have agreed on a compromise in the debt dispute. This means that the US can take out more loans, which will ultimately result in an increasing money supply. This could further fuel inflation, while on the other hand, it could boost the gold price. In recent months, the gold price has soared due to the turbulence in the banking sector and was able to mark a new high. Nevertheless, this is remarkable because the FED had raised interest rates significantly, which would typically have tended to argue for a falling gold price. If interest rates do not rise further or even fall, this would be another positive signal for gold. We, therefore, look at 2 gold companies and analyze Deutsche Bank.
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