This just in: CEO Chris Shuba in Financial Planning

Read the highlights of this week’s commentary from Helios:

  • Nvidia reported earnings on Wednesday, posting 265% year-over-year revenue growth. On Thursday, the stock rose 16.4%, adding $277 billion to its market cap – the biggest single-session increase in value ever.
  • Despite concerns about a potential bubble in AI-related stocks, Nvidia’s valuation is considered reasonable compared to its peers, trading at about 32 times forward earnings, lower than Advanced Micro Devices (AMD), Amazon, and Microsoft.
  • Investors concerned about high price-to-earnings (P/E) ratios in US stocks should prioritize sector over geographic diversification, as US stocks appear expensive mainly due to heavy tech sector weighting. Strategies like sector reallocation within the US may be more effective than turning to international equities.
  • Ten-year Treasury yields hit new year-to-date highs as an unexpected jobless claims drop boosted confidence in the US economy, reducing bets on interest rate cuts in 2024.
  • A Fidelity International money manager has sold the majority of US Treasuries from funds he oversees on expectations of continued US economic growth. Investments were shifted towards assets favoring economic expansion, reflecting decreased recession probabilities, and adjusting for expected changes in Federal Reserve rate policies amidst signs of economic reacceleration.

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