Unlocking Wealth: Crafting a Resilient Portfolio with Diverse Assets and Solid Returns
Market Commentary
Based on our latest observations, the market last week saw NDX, SPX, and STOXX50 as the outperformers with positive returns of 2.47%, 1.13%, and 0.93% respectively. Conversely, HSI, Brent, and WTI underperformed with negative returns of -4.25%, -4.4%, and -4.52% respectively.
In terms of treasury yields, all treasuries, except the 13-week, have decreased compared to yields from one week ago. The 13-week treasury saw a small difference. This indicates a lower demand for treasuries and potentially higher interest rates.
The risk/reward ratios suggest that NDX and NK225 have the highest ratios of 1.65 and 1.04 respectively, indicating potentially higher returns for the level of risk. On the other hand, JPY and CAD exhibit the lowest ratios of -0.72 and -0.65 respectively, indicating lower returns for the level of risk.
Securities with the lowest correlation with all other assets include Gold, Silver, STI, and Brent, with average correlations ranging from 0.21 to 0.29. This suggests that these securities may provide diversification benefits in a portfolio.
In the global markets, Qualcomm announced the end of its satellite communication project with Iridium, while Samsung faced delays in its VR headset plans. In the mobile phone industry, there were rumors about Apple testing a hole-punch cutout for the iPhone 16 Pro. Other news included affordable home redecorating ideas, new income tax brackets announced by the IRS for 2024, and the stock market rally facing a make-or-break moment. Additionally, there were reports of a cyber attack on the world's largest bank, the success of experimental cholesterol-lowering drugs, and the ongoing conflict between Israel and Palestine.
Looking ahead, some upcoming economic data for next week that should be closely watched include WPI Inflation YoY, Core Inflation Rate MoM, Retail Sales MoM, Industrial Production MoM, and NAHB Housing Market Index. These data releases have the potential to cause market volatility, and any surprises towards the upside or downside should be monitored closely.
Overall, the market last week showed a mixed performance, with some assets outperforming while others underperformed. The treasury yields have decreased, indicating lower demand for treasuries. NDX and NK225 have the highest risk/reward ratios, suggesting potentially higher returns. Gold, Silver, STI, and Brent exhibit the lowest correlations, indicating potential diversification benefits. Going forward, the upcoming economic data and ongoing news events should be closely monitored for their potential impact on the market.
Essential Charts
