If things are feeling a little “odd” this week, it’s because markets are still holding their breath ahead of the US elections – like we speculated last week.

But investors have been quietly repositioning across the board – from gold and Bitcoin to Tesla stock. Here’s how you can prepare as we get closer to one of the most closely watched events of the year…

Shining some light on 🔦 

• Gold VS Bitoin VS Escaping the rat race.

• PnP renewal strategy, SA investment drive & AMD optimism.

• Stock update: Higgo’s Top 11 stock picks for 2024.

• Earnings calendar: Who’s reporting on revenue, when.

THE SPOTLIGHT

Gold, Bitcoin & Other Surges this Week

With just days to go before the U.S. election, most international financial markets are in a holding pattern, with investors displaying mixed appetites for risk. 

The dynamics playing out across different asset classes – gold’s rally, Bitcoin’s ascent, and Tesla’s record gains – show a landscape shaped by both anticipation and caution.

Gold Soars as a Safe Haven Asset

As geopolitical risks mount, including ongoing tensions in the Middle East, gold prices have surged 32% this year, closing in on record highs. Analysts project prices could reach just shy of R5,000 per ounce by year-end as investors seek safe-haven assets amidst election-driven uncertainty.

The recent increase in central bank gold purchases and more anticipated interest rate cuts further bolster gold's appeal. For risk-averse investors, the stability of precious metals provides a hedge against potential post-election volatility, with demand projected to stay strong as the political climate unfolds.

Bitcoin’s Rally Underpinned by Fiscal Concerns

In a departure from traditional markets, Bitcoin has seen a parallel rally, spurred by investor confidence in its status as “digital gold.” Bitcoin hit $71,000 this week, just shy of its record high, as anticipation grows around pro-crypto policies under a potential Trump administration. 

In an article touting “Your Money is Being Wasted,” Tesla’s Elon Musk has even declared the U.S. debt load a “financial emergency,” saying it’s priming both the gold and BTC surge and urging fiscal responsibility as a critical issue.

This rhetoric has helped fuel Bitcoin’s growth as a hedge against fiat instability, with Bitcoin ETFs now outpacing many traditional ETFs (BTC and ETH ETFs now make up 14 of the top 30 new ETFs), signalling broader market adoption.

Tesla’s Double-Edged Growth and Crypto Strategy

While Tesla’s Q3 earnings exceeded expectations, propelling shares up by 22%, Musk’s growth updates reveal a unique strategy that blends optimism for growth with a conservative financial outlook. Tesla’s commitment to holding Bitcoin on its balance sheet reflects Musk’s faith in crypto’s long-term value, even as he warns of the risks associated with the U.S. debt crisis.

Tesla’s growth trajectory – and dual stance of EVs alongside BTC – appeals to investors who see tech innovation as a longer-term play, balancing today’s fiscal challenges with tomorrow’s potential gains.

Note: This is not financial advice, merely observations. For personalised financial advice, you can book to speak to a financial advisor here (powered by a registered FSP: No. 51310).

STOCKS AND ALL

📉 Pick n Pay’s Widening Losses: Pick n Pay posted a R827.4 million loss for H1 2024, up 45% from last year. Despite a 3.7% turnover growth to R56 billion and a modest trading profit from Boxer, hefty finance costs led to a R1.05 billion pre-tax loss. The group is exiting the Nigerian market but plans to list its Boxer division on the JSE in Africa’s largest IPO this year, aiming to raise up to R8 billion as part of a restructuring strategy.

🌍 JSE’s Investment Drive: A South African delegation, including JSE leadership and government ministers, is in New York for the SA Tomorrow Conference, promoting SA as an investment destination. CEOs from 19 listed companies are joining the push to attract U.S. investors, highlighting opportunities in sectors from energy to digital tech.

📈 AMD Gears Up for Earnings: AMD shares rose 2.36% to close at $159.92 ahead of its Q3 earnings report. Wall Street expects earnings per share of 92 cents and $6.71 billion in revenue, as investor attention sharpens on AI chip demand and AMD’s competition with Nvidia.

THE PEOPLE HAVE SPOKEN

Which sector do you think will benefit the most post-election?

🟩🟩🟩🟩🟩🟩 🛢️ Oil and defence (36%)

⬜️⬜️⬜️⬜️⬜️⬜️ 🌱 Clean energy (0)

🟨⬜️⬜️⬜️⬜️⬜️ 💻 Tech and healthcare (13%)

🟨🟨🟨🟨⬜️⬜️ 💰 Financials (25%)

🟨⬜️⬜️⬜️⬜️⬜️ 🏗️ Infrastructure and construction (13%)

🟨⬜️⬜️⬜️⬜️⬜️ 📦 Retail and consumer goods (13%)

LOL, so considering we highlighted which markets might do well if Trump or Harris wins the US elections, the majority here seems to predict a Trump win – which is not dissimilar to poll projections right now.

Both trackers we highlighted last week have increased Trump’s changes by at least 2 points in 7 days – The Hill increased it to 54% Trump and Polymarket says it’s a resounding 66%.