Market Musings 140724: Global Stocks Advance Broadly

14th Jul by Edmund Shing

63 comments 2086 reads

Market Musings 140724: Global stocks advance broadly

Summary

Nasdaq 100 advances but stutters
New multi-year highs in Japan Nikkei 225, Korean KOSPI, Indian SENSEX indices
US inflation lower than expected, raising US rate cut expectations
Gold hits a new weekly high, threatens to break higher; gold miners rally
UK mid caps (FTSE 250) continue to rebound post-election, sterling rallies too v USD, EUR
Euro leaves behind French election uncertainty, back above $1.09
Political uncertainty seems to have little impact on stock market optimism

Very strong Japanese, Taiwan performance

Nasdaq tech large-caps still advance after a stutter

UK, Europe mid-/small-caps perform strongly

Biotech sector picks up momentum after lagging since 2021

Gold Miners break out of very long-term downtrend, more to come?

Conclusions

Political uncertainty has triggered little stock market volatility
Lower US inflation raises US rate cut expectations (in September), driving US bond yields lower, US dollar lower v Euro, Sterling
UK stocks, sterling catch a bid post election; remain undervalued v global counterparts
Gold and silver miners should rise further on back of bullish gold, silver momentum. Gold likes US Fed rate cuts
Biotech is mounting a comeback after weak post-2021 performance

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bullhead

Thu 2:26pm

This comment has been moderated

Alphaflight

Thu 2:47pm

Yeah my thoughts exactly.

Thu 2:58pm

john2

Thu 4:25pm

SCI20

Thu 4:35pm

Hi illiswilgig and thank you for your detailed and measured reply. Sadly I can only see the growth in defence spending being seen by most countries as a necessity. Modern warfare/defence will be led by technology and as you say the US has been the leader in this and will continue to be so. I have no expertise in the sector but see it as having inevitable growth. I hold VanEck Defense UCITS ETF USD A (LON:DFNG, Rolls-Royce Holdings (LON:RR.), BAE Systems (LON:BA.)

Don`t let the tail wag the dog

Fri 11:04am

I have to question whether Alphaflight or yourself really respect anyone who has a contrary view. You seem to have to keep stating to one another that you are critical thinkers, but a real critical thinker wouldn`t need to state this, he would just leave it for other people to make their own judgement. Moreover, if someone has a contrary view to yourself you seem to dismiss it and say they just get their news from the BBC. But how do you know where someone has got their information from? My pensions observations comes from talking to Russians. Moreover I`ve not just been to Moscow, I`ve been to another city, where incomes I`m told are at least a fifth of Moscow levels. Living in Moscow is not a reflection of the whole of Russia, though of course I dont know where else in Russia Alphaflight has lived.

Also is reading some obscure blog on the internet more objective than the BBC. Who holds these bloggers to account? Are you as questioning of their information as you are of sources you don`t like? We can all selectively find data to confirm our biases. You quote PPP figures for Russia, I can quite easily quote GDP per capita figures at constant US dollar and I will get a figure more than half of what you quote.

But my concern is why do both of you have so little respect for those who disagree with you. You call us strange, gullible, you even question the professional integrity of a psychiatrist on the basis of a couple of messages he wrote on your thread. I`m sure you`ve never met the person yet you personally insult his integrity on two comments he`s made. Maybe you need to ask yourself why are you doing this? Am I really respecting someone elses opinions or am I reacting emotionally because I disagree with something.

I have different values to you so I may often not agree with you. But if you come up with a good argument I will try and take that on board and modify my views, though this is hard. If I am wrong in my view, I hope I have the humility to admit and accept this, however this is admittedly incredibly difficult as we are all emotional beings who hold values and like to be right.

Anyway enough on this. I was hoping to use Stockopedia chat to improve my investment knowledge, not to engage in political chat. I dont really think this is the place for this.

Fri 1:23pm

Fri 2:18pm

I was just requesting that people respect other people`s thought on here. I dont think calling people strange or gullible is appropriate. I think the quality of debate would be much better if we didn`t get personal. I havent red flagged this, so I am not alone in my thoughts.

Fri 2:49pm

Don`t let the tail wag the dog:

I replied to you but the message was quickly removed. Did you manage to see it?

Fri 3:16pm

I managed to see it. It was interesting. I was aware of Hunter Biden, but maybe not of other politicians. I cant really comment any further as the message isnt there. I wasnt offended but then neither of you have ever offended me directly, or if you have I`ve missed it. Hopefully we`ve all gained something from communicating to each other, but please respect I subscribe to Stockopedia as I want to be a better investor. I feel I need to avoid political arguments as it can make me emotional.

Fri 4:43pm

If as It seems you can’t debate something political without getting emotional then you shouldn’t do it

As for your comments below about the guy who said he was a psychiatrist stand by what I said he came across as extremely unprofessional and insulting he doesn’t know my back ground or anything about me

Dont throw stones unless you don’t mind getting a few back

Think the problem with many people is that they think what they feel is as important as facts

Fri 4:50pm

As there seems to be a tendency to take down whole threads and comments on here maybe the people running the site should contact people to talk about it

Personally I meet speak debate about subjects every single day with people face to face and can do it with out getting upset

The trouble with online discussions seems to be that people say things that they wouldn’t say to someone’s face personally am happy to debate face to face

Fri 5:58pm

You just dont get it. It is not justified to throw stones in retaliation, which is what I think you`re doing. I believe politics often leads people to be angry and emotional- its just some people are more aware of this than others. I`m probably less emotional in debates than most people. Sometimes we use the wrong words. If you listen to someone rather than aggressively react, you may learn more. As you say we are not talking to one another face to face, so we probably need rules to manage our behaviour.

Fri 6:25pm

Hi Bullhead.

Yes indeed.

Shutting down discourse is something that doesn't sit well with me at all.

I speak my mind so this is what I'm like face to face I'm afraid.

This post made references to freedoms in the UK, I find it rather ironic that the entire thread is now redacted and essentially unreadable.

"Those Who Sacrifice Liberty For Security Deserve Neither." - BenFranklin

Fri 6:36pm

Yeah I get your point of view and am sure your heart is in the right place just remember ”the road to ruin is paved with good intentions “

I’m not angry or emotional their isn’t one person I actually dislike it takes energy to dislike someone there are people I have no feelings for

I know enough that most people just go with the flow don’t stand up and cause waves

There are good people bad people and most people who just want to be left alone unfortunately sometimes they won’t leave you alone and will take what you have away

If I wake up even one person on here to see that the world isn’t always as it’s presented I will be happy

Don’t trust the main stream media they have their own agenda anyone who doesn’t see that after covid I’m sorry to say my friend has drunk the cool aid

As for people like Starmer I have nothing good to say main stream politicians have backed themselves into a corner with Putin and China

When it comes to Ukraine there is only one person who can stop the drift to a bigger war and that is Trump he understands Putin will do a deal other wise comes down to how many people do you want to kill

Don’t believe the orange man bad message it’s silly

One more thing as Ricky Gervais said “just because your offended doesn’t mean your right “

Have a good weekend my friend

Fri 6:48pm

Exactly Alphaflight the things that people don’t want to discuss are the things that have the biggest impact

always best to be yourself as I quoted in post below

“Just because you’re offended doesn’t mean your right “

We have no freedom to stop whatever Labour wants to do in the next 5years even less so now they have done away with the hereditary peers in the lords

Fri 7:16pm

Thank you for the 1st part of the message. I`m not going to argue any more. I think we`ve had far too much psychology/advice for one day. Have a good weekend.

Sat 10:14am

Hi bullhead.

"Exactly Alphaflight the things that people don’t want to discuss are the things that have the biggest impact"

Absolutely. There is little point in having a Discuss section if we can't freely discuss topics relevant to investing.

When Stockopedia removed the "thumb down button" I should have seen all of this coming though :-)

- Alphaflight over an out

Sat 8:06pm

Yep Alphaflight

As George Orwell said

Freedom is the right to tell people what they do not want to hear

Market Musings 140724: Global stocks advance broadly