Tech Titans Sell

Today's Agenda

Today will be talking about insider selling in Tech reaching a three-year high and US treasury market.

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TECH

Tech Titans Sell

While US stocks cap global market rally with best week in three months, notable tech titans have been selling. Jeff Bezos, Peter Thiel and Mark Zuckerberg are amongst corporate insiders who have sold hundreds of millions of dollars of their companies shares this quarter. This could signal a peak in markets. Analysts also warn the generative AI fuelled excitement of the tech bull run may be about to wane.

Bezos sold 50 million shares of Amazon worth $8.5 billion in February. Thiel, co-founder of Palantir, sold $175 million this month, his biggest sale since 2021. Zuckerberg, Metas CEO, sold $135 million worth of stock in February. What do you think, will you be following the money?

ECONOMY

$27 Trillion Treasury Market Continues To Inflate

The largest and most important market in the world is the US treasury market, and its rapid growth has investors on edge. Since the end of 2019, the treasury market has grown more than 60% to $27 trillion, six fold larger than before the 2008-2009 financial crisis. The US government is due to sell over $10 trillion in bills and bonds in 2024 to refinance that debt. Interest payments in 2024, at $870bn, will exceed defense spending and are set to cost $12.4 trillion over the next ten years. This is greater than the total size of the debt in 2009.

Banks have limited their purchase of treasuries due to post crisis regulations. So America's primary financiers are now hedge funds, money-market funds and foreign investors who may be reluctant to buy if rates come down.

We have to ask what happened to fiscal discipline and does this mean that bond yields and mortgage rates stay higher than they otherwise would be?

MARKETS
Market Recap - 22nd March

Last Friday the S&P 500, and Dow Jones Industrial Average took a breath from their record setting highs and ended the day down, while the NASDAQ Composite eked out gains, while Trumps Truth Social got its approval on Friday for this weeks merger with a Spac and is set to list on Nasdaq under the ticker DJT.

For the main indices, the S&P 500 was down 0.14% to close at 5,234.18, the NASDAQ Composite gained 0.16% to close at 16,428.82 and the Dow Jones Industrial Average lost 0.77% to close at 39,475.9.

Two companies we are watching are Nissan and FedEx. Nissan announced this morning it targets 1 million vehicle sales growth over the next three years and will launch 30 new models by March 2027. It now expects electric vehicles to be 60% of global sales by end of the decade, up from 55%. It is targeting a 6% operating profit margin, and more than 30% total shareholder returns, as it announced an updated mid-term business plan. The stock closed at $8.45 on Friday. It was a great week for FedEx with the stock gaining 12% as FedEx surprised with a better-than-expected profit of $3.51. Business is expected to continue its growth and the stock gained 7.35% on Friday to close at $284.32.

Special Mention

Todays special mention goes out to renowned investor Peter Lynch who said, The real key to making money in stocks is not to get scared out of them.

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