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Category: Commentary

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Dow Jones Loses About 1700 Points In One Trading Week

On March 31, 2025, the Dow Jones Industrial Average rose by 417.86 points, 1% to close at 42,001.76. This uptick occurred despite global market apprehensions regarding impending tariffs set to be implemented on April 2, referred to as “Liberation Day” by President Trump.

President Trump announced sweeping tariffs, including a 10% baseline tariff on all imports, with additional reciprocal tariffs targeting specific countries—34% on Chinese imports and 20% on European Union imports. These measures were scheduled to take effect on April 9.

In reaction to the tariff announcement, the Dow Jones fell about 1,700 points which was 3.98%. The S&P 500 and Nasdaq Composite also experienced significant declines, with losses of 6.65% and 5.8%, respectively. This marked one of the most substantial selloffs since the onset of the COVID-19 pandemic. On April 4, The DJI experienced its third-largest one-day point decline on record, shedding 2,231 points which is about 5.5%.

On the weekly chart, RSI has been overbought since the first week in December. As the price keeps falling, RSI could reach the oversold region. The current price of Dow Jones is 37,859 as at the time of this writing. Price might continue to fall in the next few weeks as price could hit 36,000.

Some of these ideas are in our clients’ portfolios. To understand if this one can work for you or for help to invest your own wealth, talk to our advisors at FM Capital Group. Would you like more information on how to get stock indices in your portfolio? Schedule a meeting with us here

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Will The Price of Gold Fall?

In early April 2025, gold prices reached an all-time high, surpassing $3,177 per ounce, marking an increase of over 18% since the beginning of the year. This surge is attributed to heightened investor demand for safe-haven assets amid economic uncertainties, including newly announced tariffs by the U.S. administration.

Central banks have significantly increased their gold reserves, purchasing over 1,000 metric tons annually since 2022, doubling the average of the previous decade? This trend is driven by efforts to diversify reserves away from the U.S. dollar due to geopolitical tensions and economic policies? Fears of stagflation, spurred by recent U.S. policies such as tariffs and spending cuts, have led investors to seek assets like gold?

The announcement of new tariffs by President Trump led to declines in global financial markets, with investors turning to gold, which surged to a record high of $3,170 per ounce.

Financial institutions have adjusted their gold price forecasts upward. ?Goldman Sachs forecasts an 8% rise, reaching $3,100 per ounce by the end of 2025? Morgan Stanley suggests prices could reach $3,400 per ounce within the year.

The current price of Gold is at $3,121. We might see the price of gold rally towards the high again at $3,170. While the stock market has been bad lately, gold is seen as a safe haven and this might push price to a new high in 2025.

Some of these ideas are in our clients’ portfolios. To understand if this one can work for you or for help to invest your own wealth, talk to our advisors at FM Capital Group. Would you like more information on how to get commodities in your portfolio? Schedule a meeting with us here

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Nvidia’s Movement Full Of Uncertainties

NVIDIA was founded by Jensen Huang, Chris Malachowsky, and Curtis Priem in 1993. The company revolutionized the gaming industry with the introduction of the GeForce GPU series. NVIDIA’s AI chips are widely used in deep learning and machine learning applications, powering advancements in fields like healthcare, finance, and robotics.

The company’s data center segment has grown rapidly, contributing significantly to its overall revenue. NVIDIA is a leader in autonomous vehicle technology, with its DRIVE platform being adopted by major car manufacturers. The company is expanding into new frontiers, including quantum computing and AI-driven cloud services.

The possibility of stricter regulatory guardrails around Nvidia’s chip exports is real on both sides. In the US, Donald Trump’s 20% tariffs on Chinese imports are forcing US companies to do business with each other instead of paying one-fifth extra to import a ready-made product. In China, the regulators have been actively pushing their own agenda by throwing shade on Nvidia’s H20 chip and encouraging domestic businesses to produce homegrown alternatives.

As of March 2025, the company has seen a year-to-date decline of approximately 10.13%, with a three-month loss of around 13.93%. Despite these challenges, NVIDIA remains a strong market player, with a reported revenue of $130.50 billion in 2024—an impressive 114.20% increase from the previous year. The company’s earnings also surged by 144.89%, demonstrating its ability to capitalize on the rising demand for AI-driven computing.

Analysts maintain a positive outlook on NVIDIA, with an average 12-month price target of $174.33, suggesting a potential upside of 44.44% from current levels. As AI adoption continues to expand across industries, NVIDIA’s role in shaping the future of computing is expected to grow significantly. But from our end, we are seeing a fall in price to a new 2025 low beyond the current low of $103.56; after which, price could consolidate before the rally

NVIDIA faces regulatory scrutiny, especially in China, where energy efficiency and geopolitical tensions may impact the sale of high-performance AI chips. However, the company remains resilient, with strong research and development investments positioning it for future growth.

Some of these ideas are in our clients’ portfolios. To understand if this one can work for you or for help to invest your own wealth, talk to our advisors at FM Capital Group. Would you like more information on how to get stocks in your portfolio? Schedule a meeting with us here.

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Is the US Dollar Losing Its Strength?

The year started on a positive note for the euro as the European economy showed resilience amid global uncertainties. Increased defence and infrastructure spending in Germany, coupled with improving economic indicators across the Eurozone, provided strong support for the euro. This led to the EUR/USD pair experiencing its largest weekly gain since 2009. The exchange rate hovered around 1.08-1.09, marking a significant appreciation from the previous year’s close.

The year began with the British pound showing signs of recovery following a period of uncertainty in late 2024. Investor sentiment improved as the UK economy displayed resilience despite concerns over fiscal policy`. GBP/USD started the year around 1.26 and gradually gained momentum, buoyed by expectations of a more measured pace of monetary easing compared to other major economies.

EURUSD has been rallying since the beginning of 2025 just as GBPUSD. In March, both pairs rallied, gaining over 400pips each. Price could continue to rally as we might reach a new price level for both pairs this year. We might see EURUSD reach 1.1213 from the current price of 1.0897 and GBPUSD might reach 1.33775 from the current price at 1.29644.

Some of these ideas are in our clients’ portfolios. To understand if this one can work for you or for help to invest your own wealth, talk to our advisors at FM Capital Group. Would you like more information on how to get currencies in your portfolio? Schedule a meeting with us here

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Palantir Technologies Inc. price Bounces from Major Support Level

Palantir Technologies Inc. is a leading American software company specializing in data analytics and artificial intelligence solutions for both government and commercial sectors.

Palantir Technologies Inc. went public in September 2020 via a direct listing on the New York Stock Exchange (NYSE). Since then, its stock has experienced significant fluctuations, largely driven by its government contracts, AI advancements, and investor sentiment around big data and analytics.

As of March 17, 2025, Palantir’s stock is trading at approximately $85.66 per share. The stock has experienced significant fluctuations recently, reaching an all-time high of $125.41 on February 19, 2025, before declining by about 30% in the following weeks. After price reached an all-time high on February 19, 2025, price fell to a support level at $71.67. Price has bounced from the support level.

Co-founder Stephen Andrew Cohen sold some of his holdings, raising investor concerns about insider confidence. He sold 301,847 shares at $102.14 per share on February 21, 2025 amounting to $30.8 million. The previous day’s transactions included multiple sales totalling $38.4 million. And on March 12, 2025, Cohen sold 1,250,000 shares at an average price of $82.75, totalling approximately $103.4 million.

Following the March 12 sale, Cohen’s direct ownership decreased to 592 shares, indicating he has sold nearly all his holdings in Palantir. Palantir’s collaboration with Databricks, backed by Nvidia, aims to enhance AI capabilities, potentially expanding its market share in various industries. We are projecting price could rally to $110 from the current price of $85.62 as the 4hr chart shows price being oversold.

Some of these ideas are in our clients’ portfolios. To understand if this one can work for you or for help to invest your own wealth, talk to our advisors at FM Capital Group. Would you like more information on how to get stocks in your portfolio? Schedule a meeting with us here

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Cloudflare Consolidating in Price

Cloudflare was founded in 2009 by Matthew Prince, Lee Holloway, and Michelle Zatlyn, Cloudflare began as a simple idea to enhance internet security and performance for websites. The company’s mission is to help build a better internet by offering fast, secure, and reliable services to businesses and developers of all sizes. Cloudflare’s platform spans across 275 cities worldwide.

Today, Cloudflare has grown into a publicly traded company with a market capitalization of over $40 billion. It serves millions of websites, including some of the largest companies in the world, offering a range of services that support high-speed internet experiences while ensuring security and protecting against cyber threats.

Cloudflare has shown impressive financial growth since its initial public offering (IPO) in 2019. As of 2024, Cloudflare’s revenue has consistently grown by over 25% year-on-year, driven by an increasing customer base and strong demand for its services. In its most recent quarterly report Q4 2024, Cloudflare posted a revenue of $459.9 million, up 27% from the previous year, along with an earnings per share (EPS) of $0.19, reflecting a 26% year-over-year increase.

Cloudflare’s stock $NET has experienced significant price movement since its IPO, reflecting broader market trends and the company’s own business developments. As of March 2025, the stock is trading around $116 per share, down about 8% from its previous close. Over the past year, Cloudflare’s stock has fluctuated between $66 and $177, indicating huge volatility.

Cloudflare’s opening price in 2025 was $114.53. The price rose significantly this quarter as price reached a 4-year high at $177.67 on February 14, 2025. Price has since then fallen heaving with the current price at $116.61. From our analysis, we are projection a price rally to $172.

Some of these ideas are in our clients’ portfolios. To understand if this one can work for you or for help to invest your own wealth, talk to our advisors at FM Capital Group. Would you like more information on how to get stocks in your portfolio? Schedule a meeting with us here

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Bitcoin Trying to Find Support

Following President Donald Trump’s announcement of a U.S. strategic cryptocurrency reserve that includes Bitcoin, Ether, XRP, Solana, and Cardano, Bitcoin’s price surged by 20% on Sunday. However, by Monday, it had declined nearly 9%, stabilizing around $86,000.

President Trump’s proposal to establish a national crypto reserve aims to position the U.S. as the “Crypto Capital of the World.” This initiative has faced criticism, particularly regarding the inclusion of smaller cryptocurrencies like XRP, Solana, and Cardano, which some argue dilutes Bitcoin’s prominence.

El Salvador’s President, Nayib Bukele, continues to advocate for Bitcoin adoption. The International Monetary Fund (IMF) has expressed concerns over El Salvador’s Bitcoin usage, citing high volatility and low public trust. Despite these challenges, Bukele added 19 Bitcoin to the country’s holdings, underscoring his commitment to the cryptocurrency.

In the coming days, price might fall to $79, 000 from the current price at $82, 800. When price falls to $79,000, we could see price rise to $106,000 in the coming weeks.

Some of these ideas are in our clients’ portfolios. To understand if this one can work for you or for help to invest your own wealth, talk to our advisors at FM Capital Group. Would you like more information on how to get cryptocurrencies in your portfolio? Schedule a meeting with us here

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Nvidia Continues To Rally After A Record Breaking Fall

Nvidia continues to make significant strides in the technology sector, particularly in artificial intelligence (AI) and graphics processing units (GPUs). In the third quarter of 2024, Nvidia reported a remarkable 109% increase in net income, reaching $19.3 billion, driven by surging demand for AI-related chips. Quarterly sales also saw a 94% year-over-year rise, totalling $35.1 billion. Despite these impressive figures, Nvidia’s shares experienced a slight decline of 2.3% in after-hours trading, as investors assessed the sustainability of such rapid growth.

However, in January 2025, Nvidia faced a significant market setback, with its stock experiencing a 17% drop on January 27, erasing nearly $600 billion from its market capitalization—the largest single-day loss by a U.S. company. This downturn was largely attributed to competitive pressures from emerging AI companies like DeepSeek. Since then, Nvidia’s stock has been on a recovery trajectory, with shares rising 0.4% to $139.40 as of February 18, 2025.

Recently, Nvidia unveiled its GeForce RTX 50-series graphics cards, featuring the RTX 5070 priced at $549. This new series boasts performance comparable to the previous generation’s RTX 4090 but at a more accessible price point. The RTX 5080 and RTX 5090 became available on January 30, while the RTX 5070 and RTX 5070 Ti are slated for release in February. These GPUs incorporate GDDR7 video memory and leverage Nvidia’s DLSS 4 technology to enhance gaming performance through AI-generated frames.

In the AI sector, Nvidia introduced the Blackwell architecture in March 2024, designed to cater to the growing demands of generative AI applications. The Blackwell-based B100 and B200 data-centre accelerators have received endorsements from major tech companies, including Google, Meta, Microsoft, OpenAI, and Oracle. Despite initial design challenges, the Blackwell chips have seen robust demand, with reports indicating that the entire 2025 production is already sold out.

We are hopeful for a continued rally in price beyond the high to $153 as the current price is at $137.85.

Some of these ideas are in our clients’ portfolios. To understand if this one can work for you or for help to invest your own wealth, talk to our advisors at FM Capital Group. Would you like more information on how to get stocks in your portfolio? Schedule a meeting with us here

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Price of Gold Hits New High, As Price Hits $2900 For The First Time

As of February 13, 2025, the price of gold has experienced a significant surge, reaching record highs near $3,000 per ounce. This increase is driven by factors such as central bank purchases, economic uncertainties, and geopolitical tensions.

Analysts have varying projections for gold’s future trajectory. Goldman Sachs forecasts that gold will reach $3,000 per ounce by the end of 2025.

In the investment sphere, gold mining stocks have not fully mirrored the metal’s price surge, presenting potential opportunities for investors. While gold prices have risen by 11% in 2025 following a 27% increase in 2024, gold mining stocks, have underperformed until recently. Analysts suggest that as confidence grows in sustained high gold prices, investors may turn to gold mining stocks.

As of February 12, 2025, gold prices have experienced a slight decline from their recent record highs. Spot gold is currently trading at approximately $2,885.53 per ounce, down 0.4% from the previous day’s peak of $2,942.70. This decrease follows comments from Federal Reserve Chair Jerome Powell, who indicated that while the economy remains stable, the Fed is not in a hurry to cut interest rates but will consider doing so if inflation decreases or employment weakens. Higher interest rates can diminish gold’s appeal as an investment, as it is a non-yielding asset.

Despite this recent dip, gold has seen a significant surge over the past year, rising by 40% since early 2024 and reaching $2,900 an ounce. This increase is attributed to various factors, including heightened demand from central banks diversifying their reserves amid geopolitical tensions and uncertainties. Notably, central banks have been purchasing gold for 15 consecutive years, with demand escalating in recent years due to geopolitical tensions and macroeconomic factors. The price of Gold might continue to rise, which could eventually reach $3000 psychological level this year.

Some of these ideas are in our clients’ portfolios. To understand if this one can work for you or for help to invest your own wealth, talk to our advisors at FM Capital Group. Would you like more information on how to get commodities in your portfolio? Schedule a meeting with us here

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Apple Down By 15% from December 2024 High

Apple became the first company to reach a $1 trillion market cap in August 2018 and later crossed the $2 trillion mark in 2020. As of early 2025, it remains one of the most valuable companies in the world, often jockeying for the top spot with companies like Microsoft. Apple has split its stock several times throughout its history. The most recent was in August 2020 when it executed a 4-for-1 stock split.

Apple’s innovation and brand loyalty have been major factors in its long-term performance. Apple began paying a quarterly dividend in 2012. While the company has grown, it also provides regular dividends to its shareholders, making it attractive to long-term investors. A large percentage of Apple’s stock is owned by institutional investors, including mutual funds, pension funds, and hedge funds. This shows strong institutional confidence in Apple’s long-term prospects.

In December 2024, Apple reached an all-time high at $260 per share. The opening price of Apple in 2025 was $249. Price fell to a January low at $218 per share on the 21st of January 2025, which is approximately 15%. Since this low, price has jumped, with the current price at $242.48 as of the time of this writing. We expect price of Apple to hit new highs above the 2024 high.

Some of these ideas are in our clients’ portfolios. To understand if this one can work for you or for help to invest your own wealth, talk to our advisors at FM Capital Group. Would you like more information on how to get stocks in your portfolio? Schedule a meeting with us here

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