STOCK MARKET REPORT by GRIMALDI & PARTNERS

MONTH REVIEW - JULY 2021

The international stock markets ended July with slight gains.

POSTIVITE FACTORS:

"Goldilocks" scenario: The recovery of the US economy remains strong, but is also not so dynamic to force the US Federal Reserve to act for a tighter monetary policy.

Fears of inflation have moved into the background thanks to comments from the central banks.

Fear of a tighter monetary policy in the USA in view of the recent sharp rise in inflation there has noticeably eased.

NEGATIVE FACTORS:

In addition to the increasing concerns about the corona variants, the increasing number of cases and the declining effectiveness of the vaccines weighed heavily on confidence.

Particularly noticeable at TITLE LEVEL:

After a good second quarter, ADIDAS is becoming more optimistic

The sporting goods manufacturer Adidas has slightly increased its forecast after a good second quarter. Sales are expected to increase by up to 20 percent after adjusting for currency effects. So far, Adidas had promised an increase in the high ten percent range. The profit from continuing operations is also expected to be slightly higher than planned: Here the company is assuming 1.4 to 1.5 billion, after previously expected 1.25 to 1.45 billion euros.

In the second quarter, Adidas achieved strong growth compared to the previous year, which was weak due to the pandemic. Sales increased by a little more than 50 percent to around 5.1 billion euros. All regions grew - with the exception of China. The market, which is important for Adidas, recorded a currency-adjusted decline of 16 percent. The profit from continuing operations amounted to 387 million euros, after a loss of 243 million euros in the previous year.

NVIDIA slips after stock split

Chip maker Nvidia lost 1.6% to $ 184.86 after the 4-for-1 stock split went into effect.

Still, NVDA stocks have risen> 25% since the stock split was announced in May and are up ~ 42% over the year.

NVDA has a current market capitalization of ~ $ 461 billion, making it the eighth largest publicly traded company in the US, just ahead of JPMorgan at ~ $ 456 billion.

MONTH OUTLOOK - AUGUST 2021

As long as there is a perception that the Fed will not cut QE despite its current measures and recent talks, the odds are still in favor of higher share prices.

The bull market is therefore not finished yet. We are in the mushy final phase of a bull market in which divergences are piling up and seemingly irrelevant. August should fulfill his normally bad reputation.

We expect a break in the uptrend in August.

STOCK RECOMMENDATION OF THE MONTH