STOCK MARKET BLOG JANUARY 2024

by the CEO Silvano Grimaldi of the independent asset management company GRIMALDI & PARTNERS AG

MONTHLY REVIEW

The international stock markets ended the month of JANUARY with gains.

DRIVING FACTORS

  • Generally robust economic data.
  • Hopes for rapidly falling key interest rates in the USA.
  • The falling yields on the bond market have provided upward momentum.
  • Positive quarterly figures and optimistic profit prospects from some large companies, including from the technology industry.
  • The booming topic of artificial intelligence (AI).

EQUITIES IN FOCUS

APPLE rises in anticipation of AI features after first upgrade this year

BofA Global Research upgraded the iPhone maker to "buy" from "neutral" and increased its price target to $225 from $208.

The new price target corresponds to an upside potential of 23 percent compared to the last closing price of the share.

BofA notes a strong multi-year upgrade cycle for iPhones, driven by the need for the latest hardware to enable generative AI features.

The weakness in China is offset by other regions.

MONTHLY OUTLOOK

The retreat of US long interest rates, robust economic data and generally good corporate results from the last quarter of 2023 supported the bull market in January. Good economic data and the associated profit estimates from entrepreneurs as well as key interest rate cuts remain key for the rest of the story.

For the month of February, we expect surprisingly strong price increases for individual shares in top companies and a continuation of the positive trend on the stock markets.

STOCK RECOMMENDATION: APPLE

 

© 2024, Grimaldi & Partners AG

 

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