By Silvano Grimaldi, CEO of the independent asset management firm Grimaldi & Partners AG.
Monthly Review
International equity markets ended December 2023 with gains.
Driving Factors
- Expectations that US policy interest rates could soon begin to decline again provided strong support to equity markets.
Stock in Focus
Alphabet Reaches a Two-Month High Following Reports of an Advertising-Sales Restructuring
Alphabet shares reached a two-month high following reports that Google planned to restructure its advertising-sales division.
The Information reported that Google intended to reorganise a significant part of its advertising-sales department, which employed approximately 30,000 people.
Google planned to consolidate its workforce by reassigning employees within its customer-sales division, potentially including job reductions.
Outlook – January 2024
Key Market Factors
Following the strong equity-market rally in December, a temporary pause appeared likely.
However, expectations that the Federal Reserve could begin lowering interest rates soon, potentially as early as February or March, were expected to continue supporting investor sentiment.
Lower prices for WTI and Brent crude oil, together with declining long-term interest rates, also provided support to equity markets.
Performance Expectations
For January 2024, following a pause during the first trading days, we expect the positive trend in international equity markets to continue.
Stock Recommendation: Alphabet
This publication is provided for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any financial instrument. Past performance is not indicative of future results.
