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Taking off rose-tinted glasses | Investment Competition | Week 12


This week ended green in markets. For US Markets Dow increased by 0.08%, NASDAQ by 0.95%, and S&P500 by 0.25%. The same increase was seen in European markets as well. EUROSTOXX600 rose by 0.26%, AEX by 0.46%, FTSE by 0.05%, DAX by 0.11%.

During the Covid-19 period, lots of big companies (Generally Big Tech companies which were able to turn the pandemic into an advantage) fell into a bias of thinking that their rapid growth will continue unabated regardless of the pandemic. However, they could live in that bubble for only two years. After the pandemic people gradually returned to their daily lives and the habits acquired with the pandemic were slowly left behind. Rising demand during the pandemic was followed by a decrease because of this reason. Moreover trying to deal with recession, inflation and unpredictable situations like the energy crisis was the cherry on top. Consequently cost reduction efforts directed companies to layoff solution in the first phase.

The current condition had a domino effect on most industries in the last couple of weeks. It all started with technology companies like Meta, Twitter, Philips, Amazon, Tesla, and Spotify afterward automotive, chemistry, and bank industries joined this list. For example, Meta announced these layoffs at the end of 2022 with a huge number of 11000 people however they also made it clear that these layoffs will continue in 2023. Similarly, 18000 Amazon employees lost their job in the early weeks of 2023. The numbers are quite high in other industries as well. Ford announced to cut 8000 jobs likewise Dow chemical company declared to cut 2000 jobs. To summarize, in the first weeks of 2023 according to the there were more than 67000 technology sector employees who lost their jobs. And unfortunately this situation looks like layoffs will continue.

Flow Traders Investment Competition Update

Capital Phi Investments is still leading the competition this week with a M2 of 11.14%. They are followed by Negotium Novum, taking the second place from Metrics Fund this week. Making a comeback in the top of the competition is Vico Investments, rising 12 places this week! At the bottom of the competition we can still find Urban Investments, hopefully they can improve on their position in the competition soon, because after three weeks it’s getting sad. Then we have Merx and Hera Moneta, failing to do their administrative duties, and therefore missing out on a week in the competition.


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