Weekly Market Updates - November 1st_NEWS_Franklin Medici Fund Management

Weekly Market Updates

US markets plunged following the release of major Tech firms' financial statements last week. The Nasdaq Composite Index has seen a three-week consecutive decline, shedding approximately 10% from its peak as of last Thursday. We have always advocated for a market pullback of around 15% - 20% given the high (expensive) valuations of US stocks and the market is reaching our target point. Clients can refer to our Market Spotlight "Tech Run - Time to Enter?" report, which was released immediately after the market plunge last week.

The release of the September PCE data was a relief for the market, as the data fell within the market's expectations. Markets continue to price in no interest rate hikes for November. However, it is still risky to be confident about the interest rate hikes in December and interest cuts next year given that the US Federal Reserve is a lot more mindful of economic data as compared to the past.

The European Central Bank decided to maintain the current interest rates last week, all well within market expectations. The high interest rate environment across US and Europe is likely to be similar, with both showing signs of peaking, while at the same time being around for an extended period of time given the persistent inflationary backdrop.

Main Index & P/E Ratio-3 years

The Chinese market experienced a resurgence last week, with the Shanghai Stock Exchange 50 index regaining the 3000-point. Last week, we also released a report series on how to invest in the current Chinese market (Market Spotlight - China Market Series), and we maintain our positive outlook on Chinese markets. Hong Kong markets also rebounded last week as we continue to see announcements and implementation of supportive policies to stimulate market growth.

Investment views

1. 本文所包含的任何信息均不构成购买或出售任何产品或金融产品、进行任何投资或参与任何特定交易策略的要约（或招揽）。

2. 我们未考虑您的个人投资目的、具体投资目标、具体需求或财务状况，也没有做出任何陈述，也不对本文所提供信息的准确性或完整性承担任何责任。

3. 任何意见表达（或未经通知而更改）都是作者的个人行为，且作者无法保证任何信息和/或分析的准确性和/或完整性。

4. 我们，包括作者，不就按照理解的建议、预测和任何其它信息进行投资造成的任何损失承担责任。本文的内容不应被理解为您根据本文所含信息可获利或者您不会遭受损失的陈述或保证（无论明示还是暗示）。

5. 在您做出任何投资决策前，应仔细考虑自身风险偏好，并在必要时寻求独立的理财建议。

6. 除非另有明文规定，作者的作品归我们拥有，未经我方事先书面同意，不得抄袭、复制、传播、显示、分发、转载、更改和保存供以后使用或以其他方式全部或部分使用。

DISCLAIMER AND COPYRIGHT

1. None of the information contained herein constitutes an offer (or solicitation of an offer) to buy or sell any product or financial instrument, to make any investment, or to participate in any particular trading strategy.

2. We did not take into account your personal investment objectives, specific investment goals, specific needs or financial situation and make no representation and assume no liability to the accuracy or completeness of the information provided herein.

3. Any expression of opinion (which may be subject to change without notice) is personal to the writer (the “Writer”) and the Writer makes no guarantee of any sort regarding the accuracy and/or completeness of any information and/or analysis.

4. We, including the Writer, shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained herein. The contents herein should not be construed as an express or implied promise, guarantee or implication by us that you will profit or that losses in connection herein can or will be limited, from reliance on any information set out herein.

5. You should carefully consider your risk appetite when making any investment decision, and to seek independent financial advice if necessary.

6. The works of authorship contained herein are owned, excepted as otherwise expressly stated, by us, and may not be copied, reproduced, transmitted, displayed, distributed, sublicensed, altered, stored for subsequent use or otherwise used in whole or in part in any manner without our prior written consent.

Previous: Weekly Market Updates - October 10th Next: Weekly Market Updates - November 8th