Charts that count: Markets start the year in freefall
Welcome back and happy new year.
In the first issue of the year, we forecast what to buy in 2022. To start, Dr. Mike Tubbs takes a look at the biotech industry – and vaccine makers in particular. The Covid-19 vaccines have made huge profits for some (and less for others). Mike takes a look at what worked and what didn’t, and picks the best stocks in the industry.
Mike Taylor revisits Aim market – London’s junior stock exchange. Around the same time last year, he picked five risky small-cap stocks. This week, he looks back on their performance over the past 12 months and picks four new stocks that he says could do very well this year.
And finally, Tim Dams is investigating the streaming video market. The industry performed very well as we retreated to our sofas to look at cabinet after cabinet. But what does the future hold and which stocks should you buy? Find out in this week’s magazine. And if you haven’t already subscribed, sign up here and get your first six issues for free.
The podcast is back, with Merryn and John eagerly awaiting a year they hope won’t be mired in more misery. Unfortunately, all does not start very well. Interest rates start to rise, energy prices skyrocket, and home prices do the same. Hear what they have to say here.
Here are the links to this week’s editions of Money Morning and other web articles you may have missed:
Now for the cards of the week.
Graphics that matter
Gold fell with larger markets.
(Gold: three months)
the US dollar index (DXY – a measure of the dollar’s strength against a basket of currencies from its major trading partners) saw little action this week.
(DXY: three months)
the Chinese yuan (or renminbi) also moved little (when the red line rises, the dollar strengthens while the yuan weakens).
(Chinese yuan in US dollar: since June 25, 2019)
the ten-year US government bond yield exploded after the US Federal Reserve released its minutes which made it clear that interest rates could rise much sooner than the markets expected (yields move in the opposite direction of prices, so when prices fall, yields increase).
(Ten-year US Treasury yield: three months)
But the Japanese ten-year bond yield has seen an equally large increase.
(Yield on ten-year Japanese government bonds: three months)
And the ten-year German Bund yield also headed up, but stopped before turning positive.
(Ten-year Bund yield: three months)
The copper fell.
(Copper: nine months)
And relatives Australian dollar slipped too.
(Australian dollar to US dollar exchange rate: three months)
Bitcoin fell to its lowest price in over three months.
(Bitcoin: three months)
Weekly Initial Unemployment Claims in the United States increased from 7,000 to 207,000. The four-week moving average increased from 4,750 to 204,550.
(Initial jobless claims in the United States, four-week moving average: since January 2020)
the oil price continued to rise – the OPEC + production cartel increased production less than expected in December, with supply constraints in Libya and Kazakhstan driving prices up.
(Brent gross: three months)
Amazon fell hard – the tech-rich Nasdaq index was one of the hardest hit by this week’s sell-off as investors ditched growth stocks.
(Amazon: three months)
You’re here headed lower, too.
(Tesla: three months)
Have a good week-end.