Silicon is the New Oil

🌞Ohāyo Gozaimasu🌞 Last week was promising for US markets and there is more reason to remain optimistic with this week’s incoming earnings reports from consumer businesses. If earnings are strong, our research team might have to change its tone. Some strategists (us, Morgan Stanley, Capital One) remain cautiously optimistic despite the strong beginning to the year. ___

Technology 💾

The $160 billion memory-chip industry is suffering one of its worst demand collapses ever. There’s a glut of the chips sitting in warehouses, customers are cutting orders, and product prices have plunged. The industry’s recovery will depend on how quickly US companies like Micron and its counterparts abroad make moves to negate price volatility. (BBG)

Autonomous Note🪬: Silicon is the new oil. The demand for processors and memory chips will continue to drive global development and growth. Silicon has also been a sensitive resource between governments due to its integration with communications and technology systems (US not buying Chinese made components and China considering the same). During pandemic chips were among the highest in demand and most difficult resources to acquire. More on this soon...___

Macro 🌎 Bank of Canada raised rates by 25 bps to 4.5% and signaled end of rate hikes (RT) ___

US bond funds posted net inflows for a third straight week (RT)Autonomous Note🪬: One of our main themes for 2023 (pinned message in Telegram) is the resurgence of fixed-income and the fixed-income heavy portfolio. With rising interest rates, no clear signs of a bull market, Treasuries yielding > 4% this is all starting to make sense. In the words of Wu-Tang Financial, "You gotta diversify yo bonds"___

Median US rent dropped 6% in H2 2022 (CNBC)___

Trends🕺

Gautam Adani had a 413-page answer to the Hindenburg report. The billionaire refuted allegations of fraud, hoping to calm investors in the midst of a $2.5 billion share sale. (BBG)Autonomous Note🪬: Join us live on Telegram @ 9:00 AM EST to talk about Short-Selling and the Adani situation

Toyota was the world’s top car manufacturer in 2022. The company retained the title for a third consecutive year, selling 10.5 million vehicles—including a record 8.6 million overseas. (RT)Autonomous Note🪬: Top 3 auto manufacturing centres in the world:1. Japan 2. China 3. USA___

Amazon.com: The e-commerce giant raised the minimum price for free online grocery delivery. Shares in Amazon, which is due to report results Thursday, fell about 1.2% ahead of the opening bell. (WSJ)___

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