Daily brief - 28 Dec 2023

Stocks and bonds shine at year's end

In a surprise twist, stocks and bonds closed the year with impressive gains, defying the earlier gloomy forecasts. This upbeat end was fuelled by several factors: American shoppers using their savings from the pandemic, businesses securing long-term loans, and hefty government spending to boost the economy. Inflation dropped thanks to more efficient supply chains and lower commodity prices, giving stocks a steadier ground. The excitement around AI technology also boosted US tech stocks. Additionally, investments in US corporate bonds, gold, and even bitcoin saw significant returns. This teaches us a valuable lesson: predicting the market's moves is tricky, and it's wise to reflect on our investment choices at the year's end.

Apple restarts selling watches after US court lifts ban

Apple has restarted selling its latest smartwatches in the US, after winning a court case that temporarily stops a ban. The ban was initially put in place by the US International Trade Commission (ITC) due to a patent infringement issue with Masimo Corp, a medical device maker. This issue was about a feature in the watch that measures blood oxygen. The ban affected Apple's big business and even stopped hardware repairs for some older watch models. However, Apple is now back in action, with sales resuming online and in stores. They're also working on a software update to sort out the patent problem.

Cathie Wood's big Bitcoin shift in her ETF portfolio

Cathie Wood's ARK Next Generation Internet ETF has made a big change in its Bitcoin investments. They sold all their shares in Grayscale Bitcoin Trust and bought a large number in ProShares Bitcoin Strategy ETF. This move comes even though Bitcoin's value has soared this year. The ARK ETF has had a good year too, growing by 103%, but it’s had a bumpy ride in the past. Along with this, they also bought shares in another Bitcoin-focused ETF and sold some in Coinbase Global Inc. This shows a bold strategy shift in how they're handling cryptocurrency investments.