The charts that matter: The US dollar falls and Tesla hits the $1trn milestone
Tesla hits a market cap of $1trn and the US dollar weakens. Here’s how that has affected the charts that matter most to the global economy.
This week, we’re looking at investment trusts. A discount to net asset value should never be the primary reason for buying this type of fund. But there are seven, however, that look too cheap and boast encouraging records, says Max King.
Elsewhere, Cris Sholto Heaton explores how the investment strategy of holding too many small positions can often result in more stress and higher costs without improving returns.
If you’re not already a subscriber, sign up here and get your first six issues free.
We don’t have a new podcast for you this week, but don’t forget to listen to last week’s one with where Merryn speaks to Andrew Hunt. You may have seen his recent feature on fossil fuels. Andrew’s a “deep value” investor, finding companies in the unfashionable corners of the market where many institutional investors fear to tread. He’s got lots of ideas on what to buy – listen to the what he has to say here.
Here are the links for this week’s editions of Money Morning and other web articles you may have missed:
- Monday Money Morning: What does Rishi Sunak have in store for investors this Wednesday?
- Tuesday Money Morning: When investors get over-excited, it’s time to worry- but we’re not there yet
- Wednesday Money Morning: How to invest as oil prices keep heading higher
- Thursday Money Morning: Budget 2021: the chickens come home to roost
- Friday Money Morning: What's in store for sterling?
Gold prices rose amid a weaker dollar.
(Gold: three months)
The US dollar index (DXY – a measure of the strength of the dollar against a basket of the currencies of its major trading partners) fell this week as other currencies shot and after the Bank of Canada signalled it may raise interest rates sooner than expected.
(DXY: three months)
The Chinese yuan (or renminbi) strengthened a little against the US dollar (when the red line is rising, the dollar is strengthening while the yuan is weakening).
(Chinese yuan to the US dollar: since 25 Jun 2019)
The yield on the ten-year US government bond rose as investors ignored weaker than expected US economic growth.
(Ten-year US Treasury yield: three months)
The yield on the Japanese ten-year bond fell a little ahead of central banks' policy reviews.
(Ten-year Japanese government bond yield: three months)
And the yield on the ten-year German Bund rose.
(Ten-year Bund yield: three months)
Copper prices rose in line with the global energy supply crunch.
(Copper: nine months)
The Aussie dollar rose as the US dollar index fell.
(Aussie dollar vs US dollar exchange rate: three months)
Bitcoin recovered and rose above $60,000 following a volatile week.
(Bitcoin: three months)
US weekly initial jobless claims fell 10,000 to 281,0000.
(US initial jobless claims, four-week moving average: since Jan 2020)
The oil price rose a little as U.S crude stockpiles unexpectedly fell.
(Brent crude oil: three months)
Amazon's stock faced a volatile week amid disappointing earnings.
(Amazon: three months)
Tesla shot up in value this week after the electric car producer hit the $1trn valuation mark this week.
(Tesla: three months)
Have a great weekend.
Saloni