STOCK MARKET REPORT by CEO Silvano Grimaldi of the independent asset management company GRIMALDI & PARTNERS Ltd.

STOCK MARKET REPORT by CEO Silvano Grimaldi of the independent asset management company GRIMALDI & PARTNERS Ltd.

MONTHLY REVIEW

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

DRIVING FACTORS

Signs of easing inflationary pressure provided momentum at the beginning of the year.

Investors currently see a slower pace of future interest rate changes as likely in the US.

The opening of the Chinese market after the Covid restrictions made investors take more risks here again.

Stronger growth in Europe and China.

EQUITIES IN FOCUS

The luxury goods group LVMH will increase profits and sales in 2022

LVMH Moët Hennessy Louis Vuitton, a French luxury company, reported an increase in profit and sales for fiscal 2022, supported by significant revenue growth across all of its business groups on strong demand.

For the 12-month period, the Paris-headquartered company reported net income of 14.084 billion euros, compared to 12.036 billion euros in 2021.

Profit from recurring business increased to 21.055 billion euros from 17.151 billion euros in the previous year.

Sales were 79.184 billion euros, an improvement from 64.215 billion euros in the previous year.

MONTHLY OUTLOOK

The start of the year was successful on the stock markets: January was strong according to historical statistics. The good stock market gains have already made up for part of the price losses of 2022. Whether the upward trend will continue is likely to depend on the further development of inflation and the economy, as well as on interest rate hikes by the main central banks. In any case, the prospects for 2023 are positive, because a good performance in January is often associated with a good year on the stock market.

We expect a neutral trend on the stock markets for February 2023.

STOCK RECOMMENDATION: LVMH