A 2022 complex on Wall Street left behind when In the first months of the year, the boom in Artificial Intelligence generated strong increases in technology. Subsequently, doubts about inflation in the United Statesadded to the rise of oil for him war conflict in the Middle East, and certain doubts about the rise in interest rates They moderated the profits, which, however, were very high. But let’s see how what happened in New York affected the Cedears.
It should be noted that the Argentine Certificates of Deposit are mirror actions of companies listed abroad, and although there are companies not only on Wall Street, The investment mood of that square strongly marks the performance of these roles. In Argentina the largest volume of Cedears is quoted in pesos but it is important to highlight that Its value is tied to the dollar Cashed with Settlement Therefore, if this exchange rate goes down, it affects the performance of the papers even though the original paper goes up.
Who were the big winners?
Among the most traded papers, the main winners were: Nvidia (+789%), Meta (+700%), Uber (+571%), Spotify (+558%) and Advanced Micro Devices (+481%). “The technology sector had an initial boost, especially with the adoption of artificial intelligence by companies such as Google, Apple, Meta and Microsoft. Nvidia, focused on chips for AIexperienced high demand for its products to meet the growing need for this technology,” said Maximiliano Donzelli Head of Research at IOLinvestonline.
Wall Street: what news influenced the indices this year
Tech stocks had a strong rally, especially in the first part of the year, thanks to the renewed interest in Artificial Intelligence. It was so The magnificent 7 led the most impressive increases of the year. Despite this inflationary pressures in the American economy, the peak in the price of oil in the middle of the yearand The war in the Middle East had an impact.
As to The Federal Reserve (Fed) ends the year with expectations of reducing interest rates reference during 2024. It should be noted that they are still located in the range of 5.25%-5.5%, a maximum of 22 years. In fact, right now after a long wait, investors are excited about recent data showing inflation is approaching the Fed’s 2% target.
“In 2023, financial markets experienced significant ups and downs. Despite the volatility, major US indices such as the S&P 500 and the Nasdaq obtained exceptional returns of 24% and 55% in dollarsfar exceeding their historical averages,” explained Donzelli, and expanded: “Entering the latter part of the year, A drastic drop in the price of oil and high interest rates helped regulate inflation. “The economy showed signs of tightening, and the Federal Reserve adjusted its expectations.”
CCL dollar: how was its evolution during 2023
The CCL dollar advances almost 180% so far this year, howeverin the last few days there was a strong decline that affected the Cedears. This is how he explains it Invest in the Stock Market (IEB): “In recent weeks, after the 50% devaluation of the wholesale dollar, Both the CCL and the MEP were marked by notable falls, respectively, reflecting a certain confidence on the part of the market in Milei’s plan. and contrasting strongly with the post-STEP scenario.”
“It is also worth emphasizing the influence of the supply by exporters in the latest movements of the CCL, who thanks to the more attractive exchange rate and the continuation of the settlement scheme 80% through the MULC and 20% through the CCL drive the price downward, also seeking to get ahead of the delay in the real exchange rate in the face of an inflationary rhythm that is expected to accelerate strongly,” they expanded.
What to take into account when buying Cedears
Paulino SeoaneHead of Investment Ideas Balanzrecalled that the price of Cedears in pesos is impacted by two factors: “The value of the share abroad and the value of the free dollar in our market (CCL). Currently, the price of Cedears is falling because the value of the CCL is falling, and most of the Cedears are having a positive performance on Wall Street. “What is currently happening is that the rise in these stocks on Wall Street is not as significant at this time as the decline in the CCL is.”
Seoane also recalled that There are 3 ways to obtain profitability in Cedears: “First, through the dividends that are collected in dollars from that Cedears. Second, it may happen that the share price does not vary in the US, but if you bought Cedears in pesos and the dollar rises in Argentina, andl Cedears will be worth more than at the time of purchase, obtaining a return in pesos. Third, theto capital gain due to the rise in the share price in the US”.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
