Despite numerous predictions to the contrary, financial markets and the broader economy managed to avoid a severe downturn in 2023. The first half of 2024 has witnessed a growing trend of investing in Artificial Intelligence, particularly in companies like Nvidia that are poised to benefit from it. Nvidia has climbed to the top 3 companies by market capitalization, briefly surpassing Microsoft and Apple. Moving into the second half of 2024, inflation is on the decline, and signs of weakness are emerging in the previously robust US labor market.
In September, the Fed has indicated a probable decrease, and the market views their dovish inclination as a sign that the anticipated slowdown is finally approaching. Due to low volatility and a substantial accumulation in carry trades (particularly long USD/JPY), there is notable unwinding of popular positions taking place, which gained momentum in July as we transitioned into the second half of the year.
Winslow Views, named in honor of Alfred Winslow Jones, the pioneer of the hedge fund industry, aims to help members identify the key factors influencing financial markets and determine which stories are worth tracking amidst the abundance of information, both reliable and unreliable, found in the world of financial commentary.
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