The US market is closed early due to the Thanksgiving holiday, and this article lists the best performing asset classes so far this year among five different asset classes.
The best performing G10 currency:
CHF
Year to date, up 4.7% against the US dollar
Why is the Swiss franc the best performing G10 currency so far in 2023?
The Swiss franc is widely regarded as a safe haven asset - investors/traders purchase the franc to protect their wealth during times of increased fear and uncertainty.
In 2023, some shocking events have occurred, from the banking crisis in the United States and Europe in March to the conflict between Israel and Hamas that erupted in October.
The economic difficulties in the eurozone and the expectation of a sustained economic recession have further increased the attractiveness of the safe haven currency, the Swiss franc.
Best performing metals/products:
Gold (XAUUSD)
Year to date+9.4%
Why is gold the best performing metal/commodity so far in 2023?
Due to market bets that the Federal Reserve will lower interest rates faster than previously expected in 2024, gold prices have once again hit the important psychological threshold of $2000.
Please note that gold is a zero return asset (it does not pay income to investors holding the asset).
Therefore, the idea of a decrease in US interest rates is making gold bars more attractive.
Looking back at March 2023, the US banking crisis frightened the market, leading investors to flock to the safe haven advantages of this precious metal.
This hedging demand led to gold prices soaring to $2062.97 in May 2023, only about $12 away from the historical intraday high of $2074.87 during the global pandemic in August 2020.
To be fair, so far, gold has experienced a chaos in 2023, mainly due to changes in expectations surrounding the Federal Reserve's next possible action on benchmark interest rates.
The best performing stock index:
NASDAQ 100 (NQ100_m)
Year to date+46%
Why is the Nasdaq 100 Index the best performing stock index so far in 2023?
Answer=Artificial Intelligence+Expectation of Fed Rate Reduction in 2024
Since OpenAI launched ChatGPT in November 2022, it has sparked the latest wave of artificial intelligence fever.
This in turn has stimulated the stock prices of technology companies that are considered to have an advantage in this artificial intelligence competition.
It is not surprising that the Nasdaq 100 index, which is dominated by technology stocks such as Nvidia, Microsoft, Meta, etc., has surged.
In addition, NQ100_ The tracking benchmark Nasdaq 100 index is also driven by market expectations that the Federal Reserve (US Central Bank) will start lowering interest rates as early as 2024.
Best performing US stocks (S&P 500 index components):
NVDA
Year to date+233
Why is Nvidia the best performing US stock market so far in 2023
Similar to the Nasdaq 100 index, the AI boom has led to a surge in Nvidia's stock price.
After all, NVIDIA is one of the few exceptional companies, indicating that the frenzy of artificial intelligence has brought greater profits to this American chip manufacturer, with a high demand for its GPUs.
However, Nvidia's gains so far this year indicate that many good news has been integrated into the stock price, which may make it more difficult for the stock to climb further in the near future.
However, Wall Street analysts still predict that the stock may rise further by 35.6% from its current level to reach $660.70 in the next 12 months.
Best performing European stocks:
Ferrari
Year to date+67%
Why is Ferrari the best performing European stock contract for price difference so far in 2023?
Compared to most people, the risk of economic recession/inflation for super rich individuals is much smaller.
To illustrate the huge demand for these luxury sports cars, Ferrari's demand for cars has set a new record and has been sold out before 2026!
It is not surprising that Ferrari's stock price has also reached a historic high.
