This past week was better that it might seem for the stock markets which were affected by the weakness in the technology sector. Because of the relative weight of the FAANG stocks the performance of main indices was dragged down by their underperformance. The Nasdaq and the S&P500 were down 0.6% and 0.7%, respectively, while the Dow, which does not feature as many tech stocks as the two other main US indices, was basically flat.
One can be amused by the IPO frenzy that is roaming the markets of late, suffice to consider this week’s debut of $SNOW, but should thread very carefully when investing in them. Most of the time these stocks are very volatile and their track record is either not there, or comes from quarters preceding the IPO in which the company did not have to follow the stringent reporting requirements set by the SEC: be careful out there, and invest responsibly !
In the meantime many headlines keep the market volatile, from the premature death of US Supreme Court Judge Ruth Bader Ginsburg (suggest you listen to Michael Moore’s latest Rumble podcast) to Democratic-party nominee Joe Biden desperately seeking latino votes in swing states and the rising number of Covid-19 cases globally which is causing another round of lockdowns in some European countries. Despite this, the European Stoxx index was up 0.3% this week, while Italy’s stock market lagged behind, and was down 1.5%.
No purchases this week for our RI portfolio but I am itching for new buys! I just don’t trust the environment at the minute and especially these volatility levels. Patience is a virtue and that’s especially true for responsible investors. On my watchlist are stocks like $DQ (energy), $DPW.DE (courier services), and $AMWL (telemedicine).
The table below summarises the portfolio performance since inception.
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