Why chaos in Russia could spell trouble for the global economy (4 min read)
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The global economy, already facing challenges from the pandemic and the war in Ukraine, is now at risk due to the recent armed insurrection in Russia. Although the immediate threat has been defused, the event poses a serious challenge to President Putin's authority and could lead to a period of turmoil and change. Russia, despite its economic decline, remains a major energy supplier to global markets. Any disruption in its energy exports could cause supply and demand imbalances, leading to higher oil and food prices.

U.S. Stock Market Gains & Losses By the Numbers (3 min read)
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The S&P 500 has gained more than 14% this year, and historical returns suggest that a year-end increase of 20% is more probable than a decline. This article looks at the calendar year return distribution from 1928 to 2022 and almost 60% of the years saw gains exceeding 10%, with over one-third seeing returns of 20% or more. However, it's important to note that the stock market is unpredictable, and historical probabilities cannot guarantee future outcomes. While large gains are common, significant drawdowns also occur frequently.

Lucid stock bounces back as Aston Martin to pay $232 million as part of supply pact (2 min read)
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Lucid's stock saw a significant rebound after the company announced a supply agreement with luxury automaker Aston Martin. Under the deal, Aston Martin will pay Lucid a $232 million technology access fee, including shares and cash payments. In return, Lucid will provide Aston Martin with access to its powertrain and battery-system technologies that will be integrated with Aston Martin's battery electric vehicle chassis. Shares of Lucid surged over 12% after the announcement, following a five-day losing streak.

IBM to buy software co Apptio for $4.6 billion to bolster cloud offerings (2 min read)
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IBM announced its acquisition of technology spend-management platform Apptio from Vista Equity Partners for $4.6 billion in cash. The move is part of IBM's efforts to enhance its capabilities in cloud and automation. The acquisition will benefit IBM's Red Hat business, AI portfolio, and consulting business. IBM plans to finance the transaction with cash on hand and expects the deal to close in the latter half of 2023. Shares of IBM rose 1% after the news but year-to-date it's still down nearly 9%, diverging from the broader market gains.

Crypto ETFs Surge on Leveraged Bitcoin ETF Approval, Spot Bitcoin Hopes (2 min read)
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The price of Bitcoin surged above $30,000 for the first time since a year ago. The increase was driven by hopes surrounding the approval of a spot bitcoin ETF after BlackRock and other large asset managers filed to launch such a product. The approval of the first leveraged Bitcoin futures ETF in the US on Friday, the Volatility Shares 2x Bitcoin Strategy ETF (BITX), contributed to the Bitcoin rally as well. All crypto-related also saw gains as a result, but the sustainability of the rally remains uncertain.

This Fidelity Fund Quietly Beats Cathie Wood At Her Own Game (3 min read)
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Fidelity's Blue Chip Growth ETF (FBCG) has returned 38.1% this year, outperforming the ARK Innovation ETF (ARKK) despite being smaller and younger. FBCG focuses more on big tech stocks rather than small growth stocks like ARKK. FBCG’s outperformance came as a surprise because small growth stocks usually race ahead of traditional blue chips during times when growth is in favor, like the current market. And yet, most of FBCG’s gains came from its top holdings this year, which surged almost 80% on average, surpassing ARKK’s top holdings.

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Thomas

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