Archive Category: Green Zone Fortunes (Alerts)

Hopes of shaking off Monday’s slide were dashed on Tuesday as stocks sank for a second straight day. Investors have shifted focus from third-quarter earnings to gross domestic product and other economic data coming later in the week. Federal Reserve Chair Jerome Powell is expected to give remarks at the Hutchins Center on Fiscal and Monetary Policy today. Investors will look for clues on future interest rate hikes in Powell’s words. As a result of the market turmoil, another of our genomics holdings has reached its stop price. So we’ll follow our discipline and sell today.

The market tumbled Monday as investors expressed worry over recent protests in China due to the country’s COVID lockdown policy.

In October, international investors pulled $7.9 billion out of China’s equity markets — the second-largest monthly drawdown in Chinese market history. The pullout picked up last week after Chinese President Xi Jinping won a third term as the country’s leader. Yesterday, the Nasdaq Golden Dragon China Index pared nearly all of its gains from a short rally last week. For the month, the index tracking Chinese-based stocks traded in the U.S. has fallen more than 25%.

After opening the week strong, the market started to fall on Wednesday as Treasury yields hit fresh highs.

It’s been a rough year for the Nasdaq Composite Index. In the first 10 months, the index is down 33.9%, while the S&P 500 has shed 24.7%. New limits on how much U.S. semiconductor companies can sell their products to China created a significant headwind … pushing the Nasdaq to a two-year low yesterday. Two of our positions reached their stop price at the close yesterday, so we’ll follow our discipline and sell today.