As with so many events, something that seemed small and insignificant often is the tipping point. That seems to be the case now with the Chinese balloon shot down over US territory. Diplomatic relationship between the 2 world super powers are already frayed, with the Ukraine war and Taiwan adding to the tensions.
Investing during this time, is tough ask, where the market keeps grinding higher although the news flow want to point you in a decidedly risk off positioning. With rates now higher, good old savings in a bank account could be the best bet while you get more certainty on where to invest next.
Feeling a bit more adventurous means you can look further a field where we still believe financials / banks will be a good place to hide with the higher endowment effect in the short term.
If roller coaster is more your thing, Tesla (TSLA) is now up 69.11% in the first 6 weeks of the year, making Elon Musk almost the wealthiest person in the world again. Interesting to note that after his takeover of Twitter, and charging for “Verified” status, Meta (parent of Facebook) announced a monthly subscription service for content creators that will give the author a “Verification Badge”. Revenue models being squeezed from all sides with add revenue under pressure and the cost of running big tech is big dollars.
