STOCK MARKET BLOG JULY 2023

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

MONTHLY REVIEW

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

DRIVING FACTORS

Surprisingly sharp drop in inflation in the US to 3% has put everyone in a good mood.
Robust economic data from the USA / a resilient US economy: among other things, consumer sentiment brightened unexpectedly in July.
Expectations of a near peak in the Federal Reserve's monetary tightening cycle.
China's economic measures are encouraging investors: China wants to give the country's ailing real estate market more support. Specifically, it is about the deferral of real estate loans.

EQUITIES IN FOCUS

META - AI drives ad revenue estimates & good quarterly figures

Meta shares are up nearly 8% as a rosy revenue forecast showed artificial intelligence was helping the social media giant boost engagement and ad sales even in an uncertain economy.

Meta ended the second quarter with revenue up 11% to $32 billion, beating analysts' expectations. Net income rose 16% to $7.78 billion. The results, coupled with better-than-expected third-quarter earnings estimates, are driving Meta stock.

MONTHLY OUTLOOK

Shares are up to date, and stronger than most investors were expecting.

Stock prices should start their seasonal decline by late September or early October.

We expect stock markets to stagnate over the summer months.

STOCK RECOMMENDATION: META