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Weekly Research Report – 18 March 2019

Clay Carter

“History shows that time, not timing, is the key to investment success. Therefore, the best time to buy stocks is when you have money.” - Sir John Templeton (one of the world’s most successful investors).

Global equity markets came roaring back after suffering the worst week of 2019. The technology sector is leading on a big semiconductor rally spurred by Broadcom’s (NASDAQ: AVGO) earnings report. Not a lot of obvious drivers but China stimulus positive in a global context and Chinese media also reported US and China have made “concrete progress” on text of trade agreement. US market continues to ignore the never-ending Brexit drama. Australian market (ASX 200) a notable laggard.

Weekly returns to 15 March 2019 
(AUD return far right- hand column)

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Source: Bloomberg        

Rates/Commodities

  • 10-Year Treasury yield: -5bp to 2.58%,
  • WTI crude oil: +4.5% to US$58.52.
  • AUD/USD: +0.5% to 70.84 


Notable company news

NVIDIA (NASDAQ: NVDA)

Last week NVIDIA announced that it has entered into a definitive agreement to acquire Mellanox (NASDAQ: MLNX) for US$6.9Bn. The combined company is expected to have annual revenues of approximately $14B. The addition of MLNX to NVIDIA’s data centre business makes sense as high-performance workloads become more parallel and need increasingly faster interconnects between servers. MLNX is an Israeli multinational supplier of computer networking products specialising in super-fast interconnects for datacentres. NVIDIA expects the deal to be immediately accretive to non-GAAP gross margins, earnings per share, and free cash flow.

NVIDIA is included in Macrovue's Artificial Intelligence and Tech Stars share portfolios.

Alphabet (NASDAQ: GOOGL)

Chart break out (a bullish sign)

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Source:Bloomberg

Alphabet is held in Macrovue’s Disruptive TechnologiesArtificial Intelligence and Tech Stars share portfolios.


The week ahead

The calendar is light this week. Investors will focus on the leading indicators for February and the Philly Fed index (March) and of course the FOMC rate decision (no change expected) and the accompanying press conference.

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Source: briefing.com

 
Charts of the week

1. The Amazon Effect: Those are millions of square feet!

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Amazon is held in Macrovue's Disruptive Technologies and Artificial Intelligence share portfolios.


2. Electric vehicles: The Growth opportunity with a huge addressable market and regulatory tailwinds

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Get exposure to the growth in electric and autonomous vehicles through the Car of the Future share portfolio.

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