Revenue growth. Earnings trends. Valuation multiples. Competitive positioning.

These are all important factors. But they only tell part of the story.

The reality is that many portfolio risks are hidden in the relationships behind the companies themselves.

A company may appear financially healthy, but what happens if a critical supplier experiences disruption? What if multiple holdings in your portfolio depend on the same customer network? What if a geopolitical event affects a single supply chain that connects several companies you own?

These are the kinds of risks that often remain invisible until they become material.

The Hidden Risk of Concentration

Portfolio diversification is traditionally measured by sectors, geographies, market capitalization, or asset classes.

However, modern businesses are increasingly interconnected.

Companies share suppliers, customers, logistics networks, technology providers, and infrastructure dependencies. As a result, portfolios that appear diversified on the surface may be more concentrated than investors realize.

When disruptions occur, these hidden connections can create unexpected portfolio-wide impacts.

Why Traditional Research Isn’t Enough

Identifying supplier and customer concentration risks has historically required significant manual effort.

Analysts often spend hours reviewing filings, supply chain disclosures, earnings reports, and industry research to uncover these relationships.

For many investors, this level of analysis simply isn’t practical across an entire portfolio.

How Capnote Helps

Capnote automatically detects supplier and customer concentration risks across your holdings, helping investors identify hidden exposures that may otherwise go unnoticed.

Rather than relying solely on traditional financial metrics, investors can gain a deeper understanding of how companies within their portfolios are connected.

This allows for:

• Improved risk assessment
• Better portfolio construction
• Greater awareness of concentration exposure
• Faster investment research

Seeing Beyond the Obvious

Markets often react to risks long before they become visible in financial statements.

The investors who stay ahead are often those who understand not only what they own, but how those investments interact within a broader ecosystem.

Because sometimes the greatest risk isn’t what you can see.

It’s what you can’t.

Discover your portfolio’s blind spots with Capnote.

The post Discover Portfolio Blind Spots Before They Catch You Out. first appeared on Capnote.

In this article (reading time 7 minutes), we highlight 3 actions financial advisors can take to ensure they win next-generation customers.

1. Provide Engaging Digital Experiences

It’s undeniable that the world is going digital. 74% of Gen Y and Z expect their wealth managers to offer digital experiences on par with leading digital companies. In addition, younger investors want more information on new asset classes like cryptocurrency, international markets and ESG (environmental, social and governance). 

However, it’s common knowledge that financial organizations do not innovate or build technology well. So what can they do? One option is to use a platform like Capnote on a private label basis to create custom digital experiences for financial teams and customers.

“As an independent financial advisor, I found Capnote to be an effective and cutting-edge digital experience for my clients. I particularly liked the ability to private-label the platform and customize it to suit my needs. It saved me a ton of money and time compared to the cost of building a digital platform.”

Michael, CEO, Empowerment Financial Advisors

BOOK A FREE DISCOVERY CALL

Also Read: Digitization In Finance – Critical Risks & Opportunities

2. Provide Support For D-I-Y Investing 

Younger investors want to learn to manage their portfolios and control their financial futures. According to a survey done by Deloitte, more than 60% of Gen Y and Z want better digital tools so they can manage their investments directly. Financial providers that make this an option and also provide the tools and education needed will be at an advantage when it comes to customer acquisition and retention. 

Capnote has AI-powered financial tools that help investors increase their awareness, explore the potential implications of market moves and automate report generation. It can even be customized and tools embedded into existing platforms. 

DOWNLOAD BROCHURE

3. Better Personalization & Data Capabilities

In line with modern digital products, personalization is an expectation and should no longer be regarded as optional. Good personalization requires data analytics at scale and must be constantly improving.

“I was drawn to Capnote by its ability to automate data-driven financial workflows. My investment banking team were able to try it at a reasonable rate and found significant benefits for productivity and time saving. It really can reduce weeks of work into a single click. We’re excited to see more as the product develops.”

Chidi Head of Investment Banking, RMB

BOOK A FREE DISCOVERY CALL

Thanks for reading! Please let us know your thoughts at team@capnote.com

P.S. Here are 3 ways Capnote can help your team win in the financial world: 

1. Save Time & Discover New Insights With Financial-Processing-As-A-Service.

2. Expand Your Financial Tech Suite & Accelerate Digital Transformation. 

3. Earn More Income From Your Data, Content Or Expertise.

To arrange a demo or request custom services, contact us at team@capnote.com.

The post Here Are 3 Ways Financial Advisors Win With Gen Z  first appeared on Capnote.

Digitization is an unstoppable trend sweeping across the world and permanently changing industry dynamics, investment considerations and even financial careers. Keep reading to discover key risks and opportunities to earn more. (reading time 6 minutes).

First, a quick introduction to Capnote – the modern operating system for financial data management. Improve your financial performance by using its patented technology and A.I to generate profitable insights from data, save time through automation and monetize content or expertise.

Here is a short introductory video. Click here to learn more and try for free.

3 Important Ways Digitization Impacts Finance & Investing

Digitization involves the conversion of analog information into digital or computer readable formats. It typically also involves the integration of digital technologies into business processes which is sometimes referred to by a slightly different name – digitalization. Both impact finance & investing in many ways of which 3 selections are below.  

1. Greater Digital Expectations & Needs Of Clients 

A report by Deloitte – Building a Future Ready Investment Firm – highlights the significant change in expectations clients have of their financial providers:

• $15 trillion of wealth passing from older to younger generations by 2030.
• 74% of Gen Y and Z expect their digital experiences to be on par with leading digital companies.
• 42% of investors feel digital apps, channels and platforms are the most important criteria when selecting investment providers.
• 61% of investors want providers to supply better digital tools so they can manage investments directly.

With clear implications for attracting and retaining clients, financial organizations urgently plan expenditure for digital transformation or risk being left behind. Statista estimates over $3 trillion will be spend on digital transformation by 2027. Organizations with leading digital experiences may have the opportunity to charge a premium and generate incremental revenue from new clients.

 Organizations can accelerate their digital transformation and save cost by using Capnote on a private-label basis. According to McKinsey, the majority of in-house digital projects in financial organizations fail, going over time and budget. To find out how Capnote can help your organization, use the meeting link below. Investors can also benefit from this trend by backing companies that support digital transformation like Capnote. 

Click here to schedule a quick discovery call to find out more.

Also Read: Accelerate Digital Transformation

2. More Data To Process, More Quickly  

In an increasingly digital world, financial performance closely correlates to the ability to process data quickly and accurately. However, there’s more data to consider than ever before – driven by new capabilities to track metrics, globalization, great regulation, changes in technology and more. Those able to use advanced technology for this, secure an information advantage. However, the vast majority of organizations and professionals are underserving. That’s why 62% of investment firms are making their biggest investments in data analytics.

 Capnote was created by experienced financial and technology professionals to help with this issue. It’s core function is to constantly aggregate and interpret data for financial purposes. Read more about Financial-Processing-As-A-Service.

TRY CAPNOTE FOR FREE

3. New Asset Classes 

There’s clearly tremendous opportunity and risk from new digital asset classes like cryptocurrency. Traditional risk management processes have struggled to cope with these new asset classes. However, they do not seem to be going away any time soon. Blackrock’s Bitcoin ETF (IBIT) was launched in January 2024 and already has a market cap of $159 billion. 

The below extract from Capnote’s indicator module highlights the huge volatility of bitcoin given its 5 year average of $30,946 and standard deviation of $18,401. This can be seen even more clearly in the below chart from trading economics.   

Read more about Capnote here. Contact us at team@capnote.com to schedule a free demo or discovery session.

The post Digitization In Finance – Critical Risks & Opportunities first appeared on Capnote.

Below is a picture of an automated post from Capnote’s intelligent feed which informs you about the largest up and down movements for commodities over the last week.

TRY CAPNOTE FOR FREE

To read the full post click here, otherwise, highlights are below.

Gainers: Rice 5.41%, Cocoa 4.72%, Lean Hogs 4.36%, Live Cattle 2.96%, BTC/USD 1.80%

Losers: Oats -7.28%, ETH/USD -6.55%, Natural Gas (HH) -6.30%, UK Gas -5.68%, Cotton -5.62%

 To provide even more context, Capnote now also notifies users about active commodity trends and potential implications. See below a snapshot and click here for potential implications of low natural gas prices.

According to Capnote’s commodities module, Natural Gas prices are currently 0.81 standard deviations below their 5 year average price. This is reflected in the below chart from Trading Economics. 

Some of the news articles on the Capnote feed that provide more context about natural gas prices include:

Also Read: Here Are Top 3 Money-Making Data Post This Week

• ‘U.S. Freeport LNG Back to Full Output After Hurricane-Related Shutdown’, by Oil Price –  Read more.
  
• ‘Kamala Harris reverses earlier anti-fracking stance and no longer supports a ban’, by Fortune – Read more.
• ‘Henry Hub Prices Crash Back Toward $2 On Storage Concerns’, by Rigzone – Read more.

Try Capnote for free to discover trending market moves for commodities. Join thousands of financial professionals and investors using Capnote to know more, earn more and save time. View a short demo video below.

Fun With Financial Literacy For Kids

In between creating financial algorithms, the Capnote team had some fun writing a short story to help kids learn about money. What Is Money – A Story For Kids, is the first part of a media series created by Finvar with the aims of promoting financial literacy at younger ages. It’s perfect for parents, educators and caregivers interested in sharing teachable lessons with children in a fun and safe way. It also makes a great gift idea! 

Order it on Amazon here.

The post Check Out The Market Trends This Week! first appeared on Capnote.

TRY CAPNOTE FOR FREE

Top Ranked Commodity & Indicator Prices (Capnote)

Over the last week, the below commodities and macro indicators have shown the most price movement. Gainers: Cocoa 12.13%, Japan 10Y 6.41%, Germany 10Y 3.15%, Palm Oil 3.04%, Oat 2.66%. Losers: Orange Juice -8.25%, UK Gas -7.03%, Cotton -5.43%, Palladium -4.96%, Corn -3.98%.  

Click here to read more.

Capnote’s Take: For more context, go to the Indicators module on Capnote to view the ratings of these commodities & indicators relative to their 5 year averages and standard deviations. For example, Cocoa prices rates are ‘Very High’ suggestive of a supply squeeze. Palm Oil prices rate are ‘Low’. Capnote’s implications engine will soon be able to show you which companies are at risk or could benefit from these movements. Sign-up to stay informed.

LNG Investments to Jump Over 50 Percent By 2029 (Goldman Sachs) – According to a report by Goldman Sachs Head of Natural Resources Research in EMEA, Michele Della Vigna, “The oil and gas industry is undergoing a major transformation due to the eventual long-term decline in oil demand and rising global need for natural gas.” Click here to read more. 

Capnote’s Take: The LNG space is certainly worth watching particularly given the increasing global demand for power related to digitization, AI, crypto, electric vehicles and other trends. However, consider carefully where you invest as the supply of LNG will also increase. LNG sales contracts are often long term for as long as 20 years so ensure there is offtake for new projects.

Also Read; 3 Risky Mistakes Investors & Bankers Make

Declining Birth Rates in the Most Populous Countries (1950-Today)

According to the Visual Capitalist, “This trend suggests that China could face challenges similar to those faced by Japan, which has a vast senior population and significant economic and social implications. Meanwhile The U.S. registered 11.1 annual births per 1,000 people in 2021, compared to 16.7 in 1990 and 22.8 in 1950. It’s worth noting, however, that the U.S. also adds people to its population through net immigration each year, unlike some other countries in the dataset.” 
Click here to read more.

Capnote’s Take: Declining birth rates have positive and negative effects on a number of regional industries and companies. Sign-up for free and look out for Capnote’s implications engine which will help you connect the dots. The Life Sciences industry will obviously be impacted. Contact us at team@capnote.com to purchase a timeline for the global Life Sciences industry with over 250 key events across pharmaceuticals, medical devices and related segments.

Fun With Financial Literacy For Kids

Meanwhile, In between creating financial algorithms, the Capnote team had some fun writing a short story to help kids learn about money. What Is Money – A Story For Kids, is the first part of a media series put together by Finvar with the aims of promoting financial literacy at younger ages. It’s perfect for parents, educators and caregivers interested in sharing teachable lessons with children in a fun and safe way. It also makes a great gift idea! 

Order it on Amazon here.

The post Here Are Top 3 Money-Making Data Post This Week first appeared on Capnote.

In this edition (reading time 7 minutes), you’ll discover:

• The Top 20 corporate customers of the S&P 500.
• Gaining & declining trends to watch including Crude Oil and Life Sciences.
• This week’s special offer – earn income from your data & expertise.
• Key events to watch for insight into the Delivery, Sports & Clothing sectors.

Join thousands of financial professionals and investors using Capnote to augment or monetize their expertise. Sign-up for free (no credit card required). 

User Testimonial –  “I have had the opportunity to explore Capnote. I’m genuinely impressed with its capabilities and user interface. Its great to see how intuitive and resourceful the platform is for financial analysis.” – Gian, United Kingdom 

Tip Of The Week 

Top Customers of the S&P 500

The S&P 500 is arguably the most important index in finance and is often used as a proxy for the US stock market. An understanding of the most common customers gives investors in the index an indication of companies they may not be aware that they have exposure to.

Below is a sample list of the top 20 institutional customers in order of frequency (not value). Companies in the Retail, Technology and Real Estate sectors dominate the list with Walmart the most popular customer at almost 10%. Note that investing in the S&P 500 index also gives direct exposure to some of these companies but not all.

Go to Capnote to see more details. For example, the below shows some of the companies that Apple purchases products from.

Use Capnote’s Smart Watchlist or Portfolios to discover the top customers for any combination of companies in an index or portfolio. Sign-up for free, add companies to a watchlist or portfolio and then click on ‘sensitivities’. You’ll be able to see the Top Customers, Suppliers, Industries, Institutional Investors and Tags as well as which companies they apply to.

Also Read; Independent Wealth Manager Chooses Capnote For Financial Intelligence & Automation.

This Week’s Special Offer  

Earn From Your Financial Data & Intelligence

Capnote is excited to announce that individuals and small businesses can now earn income on the platform by contributing data and intelligence. Here’s how:

1. Sign-up to Capnote for free. 

2. Go to the “Earn & Buy” tab to view paid tasks
3. Apply to listings that align with your interests, skills and expertise.
4. Our team will review your Capnote profile and reach out.

You can apply for multiple listings – the more you contribute, the more you earn!

Trending 

Sentiment Markers  

Following a rally in December, the S&P 500 started the year down in response to a rise in Treasury yields. Concerns over the state of the Chinese economy persist with even President Xi Jinping acknowledging during his speech on New Year’s Eve that “Some enterprises had a tough time. Some people had difficulty finding jobs and meeting basic needs.”

• US 10 year treasury +4.25%
• S&P 500 -1.52%
• Hang Seng -3.00%
• Crude Oil (Brent) +2.38%
• US dollar index (DXY) +1.09%
• Gold -0.48%
• Bitcoin +4.90% 

Gaining 

• Crude Oil: Prices of crude gained 2% recently as stockpiles in the US declined and tensions flared in the Middle East between Israel and Lebanon. Last month, OPEC+ also indicated its intention to deepen supply cuts.
  
• Life Sciences: Over the last week, shares of Moderna and Teva Pharmaceuticals gained 12% and 9% respectively. Moderna stock was upgraded to outperform by analysts at Oppenheimer. Eli Lilly stock gained 7% on news it was launching a direct to consumer drug delivery platform.

Declining 

• Jewelry & Ornaments: According to Tenoris BI, total retail sales value of finished jewelry fell -8.5% year on year in Oct-23 with total units down by -7.7%. Diamond prices also fell in 2023 due to lower demand and competition from lab-grown diamonds.
  
• Palladium: Capnote’s indicator tracker shows Palladium prices are low compared to their 5 year average. According Mining.com, palladium prices fell by 39% in 2023, the most since 2008. The majority of palladium demand comes from catalytic converter production. However, traders believe that the growth in electric vehicles will destroy this demand.

Sign-up to Capnote for free (no credit card required) to read more. 

Events & Notifications 

Below is a selection of events and earnings expected this week.

• 2024-01-08 Earnings – Pricesmart, Inc
• 2024-01-09 Earnings – Msc Industrial Direct Co., Inc.
• 2024-01-09 Earnings – Albertsons Companies, Inc.
• 2024-01-10 Earnings – Mettler-Toledo International Inc.
• 2024-01-11 Earnings – Tesco Plc
• 2024-01-12 Earnings – Delta Air Lines, Inc.
• 2024-01-12 Earnings – Unitedhealth Group Incorporated

Use Capnote’s Intelligent Timelines to find events and customize alerts.

Written by Ikenna Ene

The post Capnote’s Weekly Spotlight: Top Customers of the S&P 500 first appeared on Capnote.

In this week’s edition (reading time 7 minutes), you’ll discover:

• 3 reasons inflation is not dead for the intelligent investor.
• Top gaining & declining trends including the largest ever loss in US farming.
• This week’s special offer – earn income from your data and expertise.
• Key events to watch especially for insight into the Industrial and Wholesale sub-sectors.

Get ahead of the curve! Join thousands of professionals using Capnote to augment and monetize their financial expertise. Sign-up for free (no credit card required). 

Tip Of The Week: 3 Reasons Inflation Is Not Dead

Benjamin Graham is widely known as the “Father of Value Investing” and was also as a mentor to Warren Buffet. In his book, The Intelligent Investor, Graham states that [for an intelligent investor], there are 3 reasons to believe inflation is not dead. 

• Since 1960, 69% of the world’s market-oriented countries have
  suffered at least one year in which inflation ran at an annualized
  rate of 25% or more. On average, those inflationary periods
  destroyed 53% of an investor’s purchasing power. 
  
• Rising prices allow Uncle Sam to pay off his debts with dollars
  that have been cheapened by inflation. Completely eradicating
  inflation runs against the economic self-interest of any government
  that regularly borrows money.
  
• As recently as 1973 – 1982, the United States went through one
  of the most painful bursts of inflation in its history. No one who lived through it would scoff at such destruction of wealth; no one who is prudent can fail to
  protect against the risk that it might recur.

Though this book was first written in 1973, its advice is valuable today as we assess the Fed’s progress in its fight against inflation amidst market optimism of a soft landing. As Graham says,  “The intelligent investor must always be on guard against whatever is unexpected and underestimated.”

Capnote Weekly Spotlight: 3 Reasons Inflation Is Not Dead

Also Read; Capnote Weekly Spotlight: Key Supply Chains For The Dow’s Highs

Meanwhile, according to The Intelligent Investor, the standard advice for investors seeking protection against inflation includes statements like “buy stocks”. However, Graham points out that this is not entirely perfect. Above is a chart of inflation against stock market performance arranged by size of annual inflation. While mild inflation allows companies to pass on increased costs to customers, high inflation wreaks havoc—forcing customers to slash their purchases and depressing activity throughout the economy. 

Since the advent of accurate stock-market data in 1926, there have been 64 five-year periods (i.e., 1926–1930, 1927–1931, 1928–1932, and so on through 1998–2002). In 50 of those 64 five-year periods (or 78% of the time), stocks outpaced inflation. That’s impressive, but it also implies that stocks failed to keep up with inflation about one-fifth of the time. It’s worth bearing this in mind as we end the year and hold our breath for the next actions of the Fed. 

This Week’s Special Offer  - Earn From Your Financial Data & Intelligence

Capnote is excited to announce that you can now earn income on the platform by contributing data and intelligence. Here’s how:

1. Sign-up to Capnote for free. 

2. Go to the “Earn & Buy” tab to view paid tasks
3. Apply to listings that align with your interests, skills and expertise.
4. Our team will review your Capnote profile and reach out.

You can also apply for multiple listings – the more you contribute, the more you earn!

Trending 

Sentiment Markers  

Over the last week, cryptocurrency continued its rise with Bitcoin gaining over 14%. Though it has since fallen, it is still up 153% this year. With gold also retreating, the market’s economic concerns appear to be receding.

• US 10 year treasury +0.72%
• S&P 500 +0.21%
• Hang Seng -2.95%
• Crude Oil (Brent) -3.85%
• US dollar index (DXY) +0.72%
• Gold -2.73%
• Bitcoin +14.16% 

Top Gains   

Furthermore, Capnote regularly tracks industry, company and indicator performance in moving windows.

eCommerce: Following a slowdown due to the Russia-Ukraine war, growth in the global eCommerce industry has resumed. Below is a historical and forecast revenue trend from Statista with expectations of a 10% increase in 2023.

Top Declines 

Agriculture: The agricultural industry has also experienced a number of headwinds this year including higher production expenses and falling prices for certain agricultural outputs. The USDA has forecast the sharpest decline in U.S. farm income in history.

Sign-up to Capnote for free (no credit card required) to read more. 

Events & Notifications

Below is a selection of events and earnings expected this week.

• 2023-12-12 Earnings – Johnson Controls International Plc
• 2023-12-13 Earnings – Jabil Inc.
• 2023-12-13 Earnings – Adobe Inc.
• 2023-12-14 Earnings – Costco Wholesale Corporation
• 2023-12-14 Earnings – Currys Plc
• 2023-12-15 Earnings – Darden Restaurants Inc

You can also use Capnote’s Intelligent Timelines to find events and customize alerts.

The post Capnote Weekly Spotlight: 3 Reasons Inflation Is Not Dead first appeared on Capnote.

• Value chain sensitivities in the Dow Jones Industrial Average
• How to earn spare cash on Capnote
• Top gaining and losing trends including the resurgence of shipping.
• Key events to watch for this week with insight into retail and AI expected.

Sign-up for free (no credit card required) to access Capnote – an AI powered ecosystem for financial intelligence. It has multiple approved patents and is used by thousands of professionals and investors across the world. 

Tip Of The Week – Sensitivities In The Dow Jones Industrial Average

The Dow Jones Industrial Average (DJIA) is an old and popular stock market index which tracks 30 prominent US listed companies. Over the last week, it hit highs for the year, particularly driven by a surge in big tech. Below is a 5 year trend of  the DJIA from Trading Economics.

Using Capnote’s Portfolio Sensitivities feature, we put all the constituents of the DJIA into a portfolio and assessed its industry, value and supply chain characteristics. Below are some insights extracted from the data:

• Industry Exposure: Financial Services and Technology dominate the DJIA. The below extract from Capnote shows the most common industries by frequency, bearing in mind that Capnote recognizes each company may have operations in multiple  industries at the same time.

• Key Suppliers: Microsoft is the most common supplier to the DJIA particularly following its $19.7 billion acquisition of Nuance Communications in 2022. Other important suppliers include WPP Plc (NYSE: WPP), Littlefuse Inc (Nasdaq: LFUS) and Infineon Technologies (OTCQX: IFNNY). 
• Key Customers: The largest customer to the DJIA constituents is Apple Inc. The most common supplier is Dustin Group AB. See below an extract which may be worth looking into for risk and opportunities.

Build a watchlist or portfolio on Capnote and use the Sensitivies function to dive into the value chains of multiple companies and discover common features. Try it now on Capnote for free. 

Also Read: Capnote Weekly Spotlight: Will Risk-On Sentiment Extend To China?

Earn Spare Cash On Capnote 

Capnote is excited to announce that you can now earn income on the platform by contributing data and research. Ready to earn as much as $500 a month? Here’s how:

1. Sign-up to Capnote for free. 

2. Go to the “Earn & Buy” tab to view paid tasks
3. Apply to listings that align with your interests, skills and expertise.
4. Our team will review your Capnote profile and reach out.

You can apply for multiple listings – the more you contribute, the more you earn! So why wait? Start monetizing your expertise with Capnote today!

Trending Now In Finance 

Sentiment Markers  

Over the last week, yields on US Treasuries have continued to fall. A weakening in the Dollar has contributed to gains in Gold and Bitcoin. The market appears to be giving mixed signals between safe havens and risk-on assets. Crude Oil continues to experience demand concerns despite a production cut by OPEC+. 

• US 10 year treasury -6.06%
• S&P 500 +0.77%
• Hang Seng -4.15%
• Crude Oil (Brent) -1.76%
• US dollar index (DXY) -0.20%
• Gold +1.75%
• Bitcoin +2.57% 

Top Gainers  

Capnote regularly tracks industry, company and indicator performance in moving windows.

• Cruise Lines: Following hard times during the coronavirus pandemic which required government support for some, cruise lines have roared back this year. Royal Caribbean Cruises Ltd stock is up 127%. Representative of the wider tourism and hospitality industry.
• Baltic Dry Index (BDI): As a measure for the average cost of shipping dry bulk material around the world, the BDI is also regarded as a leading indicator for economic activity. Its 40% gains over the last week have also translated into gains for shipping stocks. Below is a 1 year trend from Trading Economics.

Top Losers 

• China-based Technology: The Chinese economy’s emergence from the pandemic has been largely underwhelming so far.  In addition, the diversification of supply chains away from China due to recent geopolitical tensions has not helped. The Invesco China Technology ETF is down 19% this year.
  
• Petroleum: Over the last month,Crude oil prices havecome down from $90 per barrel to current levels closer to $75 per barrel. This slide has continued despite the recent announcement of production cuts by OPEC+ with the market left skeptical over global demand amidst supply increases.

Sign-up to Capnote for free (no credit card required) to read more. 

Events & Notifications 

Below is a selection of events and earnings expected this week. Lululemon has been a market favorite this year with gains of 44%.   

• 2023-12-04 Earnings – Mongodb, Inc.
• 2023-12-05 Earnings – Nio Inc.
• 2023-12-05 Earnings – The J. M. Smucker Company
• 2023-12-05 Earnings – C3.Ai, Inc.
• 2023-12-06 Earnings – Broadcom Inc.
• 2023-12-06 Earnings – Lululemon Athletica Inc.
• 2023-12-06 Earnings – Docusign, Inc
• 2023-12-07 Earnings – Dollar General Corporation
• 2023-12-08 US Non-Farm Payroll 

Use Capnote’s Intelligent Timelines tool to find and customize events that you’d like to receive.

The post Capnote Weekly Spotlight: Key Supply Chains For The Dow’s Highs first appeared on Capnote.

• Will the US-China presidential summit inspire cross border investment?
• Top gaining and losing trends including all time highs for orange juice. 
• Key events to watch for this week particularly related to AI and monetary policy.

Sign-up for free (no credit card required) to access Capnote – an ecosystem for better finance with AI-powered tools, data-driven intelligence and opportunities to earn income from your expertise. 

Tip Of The Week: Quickly Reassess Your Exposure To China

In recent times, corporations and investors have never been more fearful about their exposure to China. In September, the net outflow of funds from China hit a 7 year high, according to Nikkei reports. The presidents of America and China held a summit last week which appeared to mark the slight easing of tensions between the world’s two largest economies.

Some key notes below:

• Military: Resumption of open military communications between the countries certainly is a step in the right direction though neither side will take their foot off the pedal. Easing of military tensions is timely as Taiwan’s presidential elections will be held in January 2024 before US elections in November.
  
• Artificial Intelligence & Semiconductors: Talks focused on preventing improper use of AI in military or nuclear applications. However, with the US restricting access to advanced chips for AI, China has committed to boosting domestic capabilities creating a surge in local chipmakers. The top 10 domestic equipment manufacturers’ revenue grew 39% year-on-year, according to Shanghai-based CINNO Research.
  
• Trade Tariffs: This summit did not appear to address the issue of trade tariffs. CNBC reports that as at November 2023, 66.4% of U.S. imports from China are under tariff. The average U.S. tariff on Chinese exports is set at 19.3%. That is more than six times higher than before the trade war began. Chinese tariffs cover 58.3% of U.S. exports at an average of 21.1%.

If tensions ease and cooperation returns, this could potentially indicate opportunities for risk reduction or growth. Amidst better than expected inflation numbers, US stocks have rallied in the second half of the year. As investors chase returns, will risk-on sentiment extend to China? However, with significant tariffs and unchartered technological developments, there does appear to be some way to go before investor confidence fully returns. Renowned investor Ray Dalio gave his thoughts on CNBC.

Meanwhile use the Maps Smart Tool on Capnote to do this quickly and easily. Below is a sample visualization with data highlighting Tesla’s subsidiaries and reported geographic revenue exposure. 

In addition to the above, Capnote also shows the names of each subsidiary and can aggregate a number of companies in a portfolio onto a single map. It’s quite handy for seeing high concentrations levels to particular geographies. Try it now on Capnote for free. 

Trending Now In Finance

Sentiment Markers  

Over the last week, yields on US Treasuries fell as the Us Treasury indicated that the government would issue less debt than previously expected given higher tax receipt forecasts. This contributed to risk on sentiment and a rally in stocks. View select key indicator weekly movements below.

• US 10 year treasury -4.40%
• S&P 500 +2.24%
• Hang Seng +1.46%
• Crude Oil (Brent) -1.02%
• US dollar index (DXY) -1.93%
• Gold +2.56%
• Bitcoin -1.92% 

Top Gainers  

Capnote regularly tracks industry, company and indicator performance in moving windows.

• Household Retail: Following earnings last week, stocks of Target and Williams-Sonoma gained +20% and 21% respectively. With recent inflation numbers showing declines, perhaps shoppers may feel more inclined to spend over the holiday season.
• Orange Juice: Last week, orange juice futures gained +10% to breach all time highs. Over the last couple of years, adverse weather and a bacterial disease have reduced production in the three main growers – Mexico, U.S. and Brazil. Analysts do not expect relief soon. Below is a 10 year price chart from Trading Economics highlighting its staggering run.

Also Read: Capnote’s Weekly Spotlight: Is Palladium In A Death Spiral?

Top Losers 

• Vaccine Makers: Regarded as Wall Street favorites during the pandemic, Moderna and Pfizer stocks are down -57% and -49% this year. It remains to be seen if this is only due to lower coronavirus vaccine sales or a broader push back by consumers on frequently misunderstood mRNA vaccinations.  
• Government Bonds: Yields on 10 year governments bonds for a number of countries fell last week including the US, Switzerland, Japan, Sweden, Chile and others. Investors and Consumers will be hoping this is the start of a return to normalcy as inflation eases.

Sign-up to Capnote for free (no credit card required) to read more. 

Win & Earn 

Imagine all the presents you could buy with a share of the $1,000 in cash from a holiday lottery and giveaway for Capnote’s subscribers. Join in by signing-up to Capnote today.

Events & Notifications 

Economic Events: 

• FOMC Minutes: On Tuesday 21 November, the minutes from the Fed’s meeting of October 31-November 1 will be released. The market will be looking for any signs pointing to easing monetary policy amid lower inflation and jobs numbers last week.
  
• Thanksgiving: US markets will be closed on Thursday 23 November for Thanksgiving.According to Benzinga, over the last 50 years, the S&P 500 has experienced an average gain of 0.54% during Thanksgiving week, higher than the typical average weekly gain of 0.16%.
  
• Inflation data: This week, inflation information will be released in countries including Germany (20 November), South Korea (20 November) and Canada (21 November). Inflation numbers across the world will feed into global supply chains.

Earnings: In the coming week, earnings for Nvidia will provide more insight into the AI boom.  

• 2023-11-20 Earnings – Zoom Video Communications, Inc.
• 2023-11-20 Earnings – Vmware, Inc.
• 2023-11-21 Earnings – Best Buy Co., Inc.
• 2023-11-21 Earnings – Nvidia Corporation
• 2023-11-21 Earnings – Baidu, Inc.
• 2023-11-21 Earnings – Dick’s Sporting Goods, Inc.
• 2023-11-21 Earnings – Medtronic Plc
• 2023-11-22 Earnings – Deere & Company

Use Capnote’s Intelligent Timelines tool to find and customize events that you’d like to receive.

Written by Ikenna Ene

The post Capnote Weekly Spotlight: Will Risk-On Sentiment Extend To China? first appeared on Capnote.