Finance Insights Vol 4

admin Insight

Author — Martin Young, CEO of Farringdon Asset Management

Global Macro Review

  • Gold and silver prices rose substantially in last 2 weeks, with gold setting a record at USD 2178 and Silver going above USD 25.

  • Metals are rising on inflation and market expectations of US interest rate cuts.

  • Markets have been driven by AI narrative.

  • Currently AI companies are massively unprofitable.

  • AI code generation costs are approx. $30 per user per month vs $10 being sold.

  • AI searches cost approx. 10 times more than regular searches.

  • The vast scale to run the model is making it costly.

  • The demand for chips to support AI adoption by companies have drove up revenues of Chip companies’ like Nvidia massively.

S&P 500

5117

FTSE 100

7727

Gold

USD 2151

Crude oil (WTI)

USD 81.51/Barrel

US Markets

  • Apple is in talks with Google to use Gemini on iPhone.
  • Fed meeting begins on Tuesday.
  • Treasury Yields spiked on persistent inflation.
  • Markets have been filled with negative sentiments as inflation remained sticky over the last few months.

Other News

  • Putin wins Russian election with a score of 87%.
  • China is sponsoring peace talks in Switzerland in efforts to halt the war between Russia and Ukraine.

Farringdon View On the Semi-conductor Market

  • In this late cycle of interest rate hike, Bond interest rates will slowly decline, and gold prices should go up.
  • Gold may reach 2300 and silver may reach USD 30 by end of 2024.
  • Silver prices are volatile and heavily manipulated. There may be high volumes of silver trade which may push silver valuations up.
  • Farringdon expects 2-3 interest rate cuts for 2024.
  • Advisor should take a long-term view for their client portfolio to do well in this volatile current markets.

Farringdon Finance Insights

Navigating The World of Asset Management

Our Key People

Martin Young
Chief Executive Officer, Singapore

Daniel Carnie
Chief Executive Officer, Kuala Lumpur

Stuart Yeomans
Chief Executive Officer, Dubai

 

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Farringdon Capital Ltd is incorporated in the Dubai International Financial Centre (DIFC) under number 4190, and regulated by the Dubai Financial Services Authority (DFSA).

The information contained in this document is for information only and should not be taken as a recommendation to buy or sell. Investors are reminded that past performance is no indication of future performance.

Finance Insights Vol 4