Growth to value – After last weeks confirmation that the Fed is contemplating raising interest rates sooner than expected, fuel has been added to the mounting shift back to value stocks. A portion of the market that has largely suffered as of late. Low interest rates has seen the MSCI World Growth Index outperform the MSCI World Value Index by 12% annually the past 5 years, however since December 1, value stocks have outperformed Growth by 7%.

 

Tesla –  U.S electric vehicle maker Tesla announced it sold a record 70,847 China-made vehicles in December. The highest monthly rate since it started manufacturing in Shanghai in 2019. Tesla has gained 12.31% this week.

Rivian – Amazon backed, electric pick up maker, Rivian, has hit a bump on news of Amazon deal. Rivian reached an all time low this week amid growing competition in the EV market. Although Rivian and Amazon said their partnership is unchanged, Amazon announced a new deal to buy electric vehicles off Stellantis. The announcement saw Rivians stock trading below is IPO price.

 

Global Supply Chain – With the new omicron variant running rampant, the supply chain issues of 2021 have not had a chance to repair and are now looking worse than ever. Empty shelves are becoming a norm as whole factories, supermarkets and ports around the world are brought to a holt. This paired with rising inflation could be a time bomb for global markets.

Lower Economic Growth – This week, the united nations has announced forecasts for lower global economic growth for 2022 and 2023 as the world continues to battle COVID, labour market challenges, supply chain issues and inflation. 2021 saw a 5.5% growth, but the following 2 years are tipped to see only 4% and 3.5% respectively.

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