The gold standard, dismissed in the past, is gaining attention again. Central banks are buying gold. Some cryptocurrencies are pegged to gold. Dissatisfaction with fiat currencies grows as global debt balloons. Zimbabwe has even pegged its new currency to gold. These events suggest a return to a gold-based monetary system could be on the horizon.
Apple and Amazon are set to release their financial results this week. Analysts will be paying attention to the growth of the iPhone, Apple's services business, and any updates on its AI strategy. Amazon's earnings will highlight the performance of its cloud computing business, AWS, and potential dividend announcements.
Bitcoin recently surged after a major event that halved its supply, increasing its value. Experts predict further growth due to increased functionality, high fees during the event, and the introduction of Bitcoin ETFs. El Salvador's adoption of Bitcoin as legal tender has also boosted its legitimacy. Despite potential volatility, Bitcoin is expected to reach new price highs due to its strong fundamentals.
Bond yields are rising again, signaling that inflation isn't going away anytime soon. Investors are worried that the Federal Reserve's target of 2% inflation is unrealistic, leading to falling bond values.
Experts advise caution in the bond market, especially with long-term and risky investments. The front part of the curve, like 2-year Treasuries, is considered safer.
Geopolitical tensions are also playing a role, as rising commodity prices add to inflation concerns.
Microsoft and Google's parent company, Alphabet, had impressive quarterly results. Their cloud businesses drove growth, and they beat financial expectations. Alphabet announced a dividend payout, aligning with Meta. While AI will be discussed in their earnings calls, major announcements are expected at upcoming conferences, showcasing AI's potential in their ecosystems and platforms.
Despite a strong quarterly report, Meta's revenue growth is slowing, and investors are worried about its increased spending on AI. They're concerned about Meta's costs after years of focus on efficiency. Additionally, Meta faces competition from platforms popular with younger users, such as Snapchat and TikTok. The company must address these challenges to maintain its growth trajectory.
