MyStratWeekly – April 2nd 2024

Topic of the week: The New Gold Rush

• Gold prices have reached historic highs;
• Financial conditions are determinants of short-term prices prospects;
• However, demand, particularly from central banks, is an important determinant in the long term;
• Since 2008, the demand for gold from central banks in emerging countries has more than doubled;
• This reflects a willingness to diversify away from the dollar for economic and geopolitical reasons;
• The precious yellow metal also serves as a means to circumvent international sanctions.

Market review: The return of specific risk

• United States: growth in 4Q revised to 3.4%;
• Global stocks up 8.8% in the 1st quarter;
• The budget deficit weighs on the OAT spread;
• The specific risk returns to high yield.

Axel Botte's and Zouhoure Bousbih's podcast

• Topic of the week: 1T 2024 – Review of US Markets and Real Estate;
• Theme: The New Gold Rush.

Chart of the week

The American Association of Individual Investors (AAII) produces a survey of market participants to gauge sentiment across financial markets.

The chart shows investor responses regarding the US equity markets. The bull vs. bear gap stands at 27.6 % indicating a high level of bullishness among US stock investors.

Excessive optimism is sometimes followed by a market correction.