Reports season is in full power, and we had some great moves last month:
April 2024 saw a shift in investors' sentiment regarding interest rates. Early in the month, expectations were that the Federal Reserve would be among the first central banks to start cutting rates to combat inflation.
However, a stronger-than-anticipated US economy and stubborn inflation data led to a change of heart. By the end of the month, investors were now anticipating the Fed keeping rates elevated for longer, with some even expecting additional hikes.
This sent the US dollar up against other currencies, potentially putting downward pressure on US inflation but also harming American exports.
Another key event in April was the continued wars in Ukraine & Middle East.
The ongoing conflicts continued to disrupt supply chains and push up energy & commodity prices. This further fueled inflationary pressures worldwide, making it even more difficult for central banks to navigate the economic tightrope.
The wars' long-term economic impact leads to higher oil prices, further impacting global inflation. Insurance rates for shipping in the region might also rise due to the heightened risk.
Overall, April was a month of mixed signals for the global economy.
While the US economy showed unexpected strength, inflation remained a major concern.
Looks like the following lines from my previous newsletter are still relevant:
Each day of trade gives us different indications that a shift is coming, yet everyone seems to be running after the AI golden rush, and its subsequent semiconductors & chips frenzy.
In our new X, Telegram & WhatsApp channels we further dig up insights while discussing hidden gems, among which might be one (or more) exponential wealth "growth stimulator".
