Look at ARK, Greece and the Dollar
- The US Dollar is crushing the competition
- ARK aggressively loses a portion of its summer income
- Athens opposes it
Money markets: High dollar
We start with the rise of the greenback, which has resumed in recent days, only to return far from its last peak, from the beginning of July. Its strength is currently measured by the DJ FXCM Dollar Index, which compares the greenback to a basket of four world currencies (Euro, Yen, Pound Sterling and Australian Dollar). The Fed’s rate hike policy is the main driver of the dollar’s rise. The second graph shows the evolution of the index over 10 years. We must remember that the only major currency that has been breaking the dollar for the past few weeks is the Russian ruble, which rose after a brief loss at the beginning of the war in Ukraine. Moscow, by forcing its Western partners to pay their debts in rubles, has created a way to buy its currency.
Duel: ARK is struggling again
A look back at our classic rivalry between financial mogul, Warren Buffett, and tech risk taker, Cathie Wood. The match between Berkshire Hathaway and ARK Innovation has turned into the city’s last advantage since the restart began on June 16, to a more than 20% interest rate early last week. But in recent sessions, ARK has lost more than half of its gains, down to around 14%. Berkshire for its part rose from 10% to 8%, which also shows the difference in volatility between the two strategies. However, it should be emphasized that Warren Buffett’s company was not created by American technology, far from it, because its main presentation is given to Apple.
Greece will be determined
We conclude with our “Sun Index”, a comparison between the performance of Milan, Madrid, Lisbon and Athens, during the summer. Greek stocks seem to be holding up better than the rest since the correction that started last week. They keep the period increasing by 7.5%, while their peers are struggling. Italian stocks are back in negative territory. The Greek ATHEX index has benefited in recent days thanks to the performance of its financial sector and the recovery of its energy sector. His low exposure to healthcare and technology also benefited, as the two sectors were shaken. The index has a strong defensive meaning, since its two largest capitalizations are Coca-Cola bottler HBC and telecom operator Hellenic Telecommunications, followed by the Greek Organization of Football Prognostics, better known as OPAP, which is La Française of Greek Sports.