Investors love playing the old hits. They bought US technology stocks and cryptocurrencies on repeat during the stock market bull run of 2021, and can't bear to let them go now.
Former tech heroes Tesla, Meta Platforms (formerly known as Facebook), Amazon and Netflix went into meltdown last year, as did Bitcoin, Ether and the rest, in what many analysts saw as a long-term shift in sentiment and fortunes.
Both asset classes belonged to the pop-tastic era of endless fiscal and monetary stimulus, which died in last year's inflationary reality check.
Watch: US Federal Reserve chief warns of 'pain' in reducing inflation
Yet, shockingly, they are now topping the investment charts again.
Electric car maker Tesla is off like a rocket this year and is up 75 per cent.
Meta has rebounded more than 50 per cent, Amazon is up 30 per cent and Netflix has gained 25 per cent.
Meanwhile, the Nasdaq has jumped 18 per cent and the S&P 500 is up 10 per cent.
Bitcoin also started 2023 with a bullet, climbing more than 40 per cent in 2023 to top $23,500 early this month. Ether and Dogecoin are close behind, as cryptocurrencies make an even more unlikely comeback.
Even meme stocks are on the mend. Remember AMC Entertainment? It is up 55 per cent this year. GameStop? Up roughly a third.
There were indications this could happen last summer, when technology stocks and cryptocurrency prices started to sing during the short-lived bear market rally.
So, are investors taking one final trip on the nostalgia circuit or does this year’s risk-on recovery have staying power?
2023 is shaping up to be the opposite of last year, for better and for worse, says Ben Laidler, global market strategist at trading platform eToro.
Technology stocks and cryptocurrencies were hit hardest by last year’s inflationary storm, with Bitcoin down 65 per cent and the Nasdaq crashing 33 per cent.
They are now leading the relief rally and this is not simply based on wishful thinking, Mr Laidler says.
“US inflation has been falling for six months and the US Federal Reserve is within a whisker of stopping its dramatic rate hiking cycle, which is coming as a huge relief to stressed investors.”
Investors should not get too carried away because we have not reached the sunlit uplands yet.
“The US economy is set to grow just 1.4 per cent this year, with zero profit growth on the S&P 500,” Mr Laidler says.
Private investors saw the rebound coming, with eToro surveys showing twice as many buying than selling in the final quarter of 2022.
Their favoured asset classes? Cryptocurrencies and technology stocks.
Cryptocurrencies — in pictures
Investors are embracing risk again as inflation and interest expectations peak, but they are at risk of becoming complacent, says Vijay Valecha, chief investment officer at Century Financial.
“They are understandably enjoying the joyride after a rough year but should err on the side of caution.”
We now live in a very different world, as the Fed funds rate has climbed from a range of 0.25 per cent to 0.5 per cent last March to 4.5 per cent to 4.75 per cent today.
Markets expect two more rate increases and this means that early stage growth companies can no longer borrow money at rock-bottom rates based on the promise of profits tomorrow.
“Investors now assign more value to good-quality companies with a sound rationale and strong income prospects today,” Mr Valecha says.
Cryptocurrencies remain a “high-risk and speculative asset class”, while some US tech hopefuls are now classified as penny stocks after last year’s falls, he says.
“Investors should stick to good-quality names and not try to catch falling knives or make outsize bets on futuristic or niche technologies.”
Some risk is good but do not overdo it as a hawkish word from the Fed could dampen sentiment overnight, Mr Valecha adds.
Tech giants Apple, Amazon and Google-owner Alphabet delivered a check to bullish sentiment last week, as their earnings “disappointed in their own separate ways”, says Chris Beauchamp, chief market analyst at trading platform IG Group.
“Despite this, risk appetite seems to be solid and US equities have started to join in on the global rally amid hopes for a more upbeat performance next time.”
Others are even more optimistic, including Yves Bonzon, group chief investment officer at Julius Baer, who boldly states that we are now witnessing “a new bull cycle, not a bear rally”.
From a technical point of view, the rally is healthy, with broad participation across the index components, Mr Bonzon says.
“We have been saying for several months now that the bottom of the 2022 bear market was in October. We are not in a counter-trend rally but a new bull cycle.”
We have been saying for several months now that the bottom of the 2022 bear market was in October
Yves Bonzon,
group chief investment officer at Julius Baer
Naturally, there are still threats, such as a Covid-19 resurgence and war in Ukraine, but as inflation falls, markets should rise.
Everything now rests on the speed of what Mr Bonzon calls “disinflation” and how central banks respond.
In the US, the Fed has almost finished its work but does not want to signal a premature pause, while the European Central Bank is at risk of overdoing it and should resist “embarking on a path of excessive tightening that can only lead to another embarrassing reversal”, Mr Bonzon says.
Samuel Fuller, director of Financial Markets Online, says investors are now anxiously trying to second guess the Fed’s next move.
“Some market watchers are predicting interest rates could soon peak at 4.95 per cent. Ordinarily, all this would give a fillip to US equities but so far, markets have been whipsawing because of the ambivalent signals accompanying the Fed’s decision,” he says.
“This has left both the US dollar and stock markets in limbo as traders scramble to decode which of the contradictory signals to believe.”
Markets are likely to pause after their recent strong run, but investors who are too cautious risk making a classic mistake. History shows that the biggest returns are made in the early stages of a bull market.
As recent events have shown, when investors get their mojo back, we are likely to find them singing the same tunes as before.
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
The%20specs%3A%20Taycan%20Turbo%20GT
%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3EDual%20synchronous%20electric%20motors%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E1%2C108hp%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E1%2C340Nm%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3ESingle-speed%20automatic%20(front%20axle)%3B%20two-speed%20transmission%20(rear%20axle)%0D%3Cbr%3E%3Cstrong%3ETouring%20range%3A%20%3C%2Fstrong%3E488-560km%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh928%2C400%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3EOrders%20open%3C%2Fp%3E%0A
Profile of RentSher
Started: October 2015 in India, November 2016 in UAE
Founders: Harsh Dhand; Vaibhav and Purvashi Doshi
Based: Bangalore, India and Dubai, UAE
Sector: Online rental marketplace
Size: 40 employees
Investment: $2 million
A Cat, A Man, and Two Women
Junichiro Tamizaki
Translated by Paul McCarthy
Daunt Books
Killing of Qassem Suleimani
Traits of Chinese zodiac animals
Tiger:independent, successful, volatile
Rat:witty, creative, charming
Ox:diligent, perseverent, conservative
Rabbit:gracious, considerate, sensitive
Dragon:prosperous, brave, rash
Snake:calm, thoughtful, stubborn
Horse:faithful, energetic, carefree
Sheep:easy-going, peacemaker, curious
Monkey:family-orientated, clever, playful
Rooster:honest, confident, pompous
Dog:loyal, kind, perfectionist
Boar:loving, tolerant, indulgent
Reading List
Practitioners of mindful eating recommend the following books to get you started:
Savor: Mindful Eating, Mindful Life by Thich Nhat Hanh and Dr Lilian Cheung
How to Eat by Thich Nhat Hanh
The Mindful Diet by Dr Ruth Wolever
Mindful Eating by Dr Jan Bays
How to Raise a Mindful Eaterby Maryann Jacobsen
Getting there
Flydubai flies direct from Dubai to Tbilisi from Dh1,025 return including taxes
BEACH SOCCER WORLD CUP
Group A
Paraguay
Japan
Switzerland
USA
Group B
Uruguay
Mexico
Italy
Tahiti
Group C
Belarus
UAE
Senegal
Russia
Group D
Brazil
Oman
Portugal
Nigeria
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
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ENGLAND SQUAD
Goalkeepers: Jack Butland, Jordan Pickford, Nick Pope
Defenders: John Stones, Harry Maguire, Phil Jones, Kyle Walker, Kieran Trippier, Gary Cahill, Ashley Young, Danny Rose, Trent Alexander-Arnold
Midfielders: Eric Dier, Jordan Henderson, Dele Alli, Jesse Lingard, Raheem Sterling, Ruben Loftus-Cheek, Fabian Delph
Forwards: Harry Kane, Jamie Vardy, Marcus Rashford, Danny Welbeck
The line up
Friday: Giggs, Sho Madjozi and Masego
Saturday: Nas, Lion Bbae, Roxanne Shante and DaniLeigh
Sole DXB runs from December 6 to 8 at Dubai Design District. Weekend pass is Dh295 while a one day pass is Dh195. Tickets are available from www.soledxb.com
The specs
Engine: 4.0-litre flat-six
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
On sale: Available to order now
Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
Available: Now
Dust and sand storms compared
Sand storm
- Particle size: Larger, heavier sand grains
- Visibility: Often dramatic with thick "walls" of sand
- Duration: Short-lived, typically localised
- Travel distance: Limited
- Source: Open desert areas with strong winds
Dust storm
- Particle size: Much finer, lightweight particles
- Visibility: Hazy skies but less intense
- Duration: Can linger for days
- Travel distance: Long-range, up to thousands of kilometres
- Source: Can be carried from distant regions
TALE OF THE TAPE
Floyd Mayweather
- Height
- Weight
- Reach
- Record
Conor McGregor
- Height
- Weight
- Reach
- Record
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%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3E2.0-litre%204cyl%20turbo%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E261hp%20at%205%2C500rpm%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E400Nm%20at%201%2C750-4%2C000rpm%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3E7-speed%20dual-clutch%20auto%0D%3Cbr%3E%3Cstrong%3EFuel%20consumption%3A%20%3C%2Fstrong%3E10.5L%2F100km%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3ENow%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh129%2C999%20(VX%20Luxury)%3B%20from%20Dh149%2C999%20(VX%20Black%20Gold)%3C%2Fp%3E%0A
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COMPANY PROFILE
● Company: Bidzi
● Started: 2024
● Founders: Akshay Dosaj and Asif Rashid
● Based: Dubai, UAE
● Industry: M&A
● Funding size: Bootstrapped
● No of employees: Nine
Why seagrass matters
- Carbon sink: Seagrass sequesters carbon up to 35X faster than tropical rainforests
- Marine nursery: Crucial habitat for juvenile fish, crustations, and invertebrates
- Biodiversity: Support species like sea turtles, dugongs, and seabirds
- Coastal protection: Reduce erosion and improve water quality
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
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%3Cp%3EFly%20with%20Etihad%20Airways%20from%20Abu%20Dhabi%20to%20New%20York%E2%80%99s%20JFK.%20There's%2011%20flights%20a%20week%20and%20economy%20fares%20start%20at%20around%20Dh5%2C000.%3Cbr%3EStay%20at%20The%20Mark%20Hotel%20on%20the%20city%E2%80%99s%20Upper%20East%20Side.%20Overnight%20stays%20start%20from%20%241395%20per%20night.%3Cbr%3EVisit%20NYC%20Go%2C%20the%20official%20destination%20resource%20for%20New%20York%20City%20for%20all%20the%20latest%20events%2C%20activites%20and%20openings.%3Cbr%3E%3C%2Fp%3E%0A
Results
2.30pm Maiden (PA) Dh40,000 1,200m
Winner Lamia, Tadhg O’Shea, Ernst Oertel.
3pm Handicap (PA) Dh40,000 1,000m
Winner Jap Al Afreet, Elione Chaves, Irfan Ellahi.
3.30pm Handicap (PA) Dh40,000 1,700m
Winner MH Tawag, Bernardo Pinheiro, Elise Jeanne.
4pm Handicap (TB) Dh40,000 2,000m
Winner Skygazer, Sandro Paiva, Ali Rashid Al Raihe.
4.30pm The Ruler of Sharjah Cup Prestige (PA) Dh250,000 1,700m
Winner AF Kal Noor, Tadhg O’Shea, Ernst Oertel.
5pm Sharjah Marathon (PA) Dh70,000 2,700m
Winner RB Grynade, Bernardo Pinheiro, Eric Lemartinel.
UAE currency: the story behind the money in your pockets
Killing of Qassem Suleimani
INFO
Everton 0
Arsenal 0
Man of the Match: Djibril Sidibe (Everton)
UAE currency: the story behind the money in your pockets
Zayed Sustainability Prize
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SQUADS
Pakistan: Sarfraz Ahmed (capt), Azhar Ali, Shan Masood, Sami Aslam, Babar Azam, Asad Shafiq, Haris Sohail, Usman Salahuddin, Yasir Shah, Mohammad Asghar, Bilal Asif, Mir Hamza, Mohammad Amir, Hasan Ali, Mohammad Abbas, Wahab Riaz
Sri Lanka: Dinesh Chandimal (capt), Lahiru Thirimanne (vice-capt), Dimuth Karunaratne, Kaushal Silva, Kusal Mendis, Sadeera Samarawickrama, Roshen Silva, Niroshan Dickwella, Rangana Herath, Lakshan Sandakan, Dilruwan Perera, Suranga Lakmal, Nuwan Pradeep, Vishwa Fernando, Lahiru Gamage
Umpires: Ian Gould (ENG) and Nigel Llong (ENG)
TV umpire: Richard Kettleborough (ENG)
ICC match referee: Andy Pycroft (ZIM)
