Tis the season for giving thanks!
With US markets closed today for the Thanksgiving holiday, we take this opportunity to list the best year-to-date performers across 6 different asset classes.
And those who had been bullish (hoping prices will go up) on these particular assets certainly have much to be grateful for ...
given how prices have panned out through most of 2023!
Best-performing G10 currency:
Swiss Franc (CHF)
+4.7% versus USD year-to-date
Why is the Swiss Franc the best-performing G10 currency so far in 2023?
The Swiss Franc is widely known as a safe haven asset – investors/traders buy it to protect their wealth in times of heightened fear and uncertainty.
And 2023 has already thrown up a fair few shockers, from the US and European banking crisis in March, to the ongoing Israel-Hamas war which erupted in October.
The Eurozone’s economic woes, as well as persisting expectations for a recession, have also further added to the safe haven CHF’s appeal.
Best-performing metal/commodity (offered by FXTM):
Gold (XAUUSD)
+9.4% year-to-date
Why is Gold the best-performing metal/commodity (offered by FXTM) so far in 2023?
Gold is now flirting with the psychologically-important $2000 mark once again, amid bets that the Fed will be lowering US interest rates sooner than previously expected in 2024.
Note that gold is a zero-yielding asset (it does not pay income to investors who hold on to the asset).
Hence, the thought of lower US interest rates is making bullion’s appeal shine brighter.
Recall also back in March 2023, the US banking crisis spooked markets, causing investors to flock towards the safe haven virtues of this precious metal.
That safe-haven demand saw gold’s price surge to $2062.97 in May 2023 – just about $12 / 0.6% away from its all-time intraday high of $2074.87 in August 2020, during the global pandemic.
To be fair, gold has had a topsy-turvy 2023 so far, driven primarily by the shifting expectations surrounding what the Fed might do next with its benchmark rates.
Best-performing stock index:
Nasdaq 100 (NQ100_m)
+46% year-to-date
Why is the Nasdaq 100 the best-performing stock index so far in 2023?
Answer = artificial intelligence + expectations for 2024 Fed rate cuts
Since OpenAI launched its ChatGPT in November 2022, that triggered the latest wave of AI-mania.
That in turn spurred on the share prices of tech companies that are seen to have an edge in this AI race.
And with the Nasdaq 100 index laden with tech stocks (think Nvidia, Microsoft, Meta, etc.), no surprise that this tech-heavy index has skyrocketed.
Furthermore, the NQ100_m (which tracks the benchmark Nasdaq 100 index) has also been boosted by market expectations that the Federal Reserve (US central bank) will start lowering its interest rates sooner than later in 2024.
Best-performing US stock (member of the S&P 500 index):
Nvidia (NVDA)
+233% year-to-date
Why is Nvidia the best-performing US stock so far in 2023?
Similar to the Nasdaq 100, the AI frenzy has caused Nvidia’s share prices to surge higher.
After all ...
Nvidia is one of the rare exceptions to show that the AI frenzy is already translating into greater profits for this US chipmaker, with its GPUs in high demand.
However, Nvidia’s year-to-date gains shows that a lot of good news have already been baked into this stock price, potentially making it harder for this stock to climb much higher in the immediate future.
Still, Wall Street analysts still predict this stock can climb by a further 35.6% from current levels, to reach US$660.70 over the next 12 months.
Best-performing European stock CFD (offered by FXTM):
Ferrari NV
+67% year-to-date
Why is Ferrari the best-performing European stock CFD (offered by FXTM) so far in 2023?
The uber-rich are far less exposed to a recession/inflation woes compared to most people.
And to illustrate the sheer demand for these luxury sports cars …
Demand for Ferrari’s cars have hit new records, and they’re sold out until 2026!
No surprise that Ferrari’s stocks have also reached record highs in tandem.
Best-performing cryptocurrency (offered by FXTM):
Chainlink
+162% year-to-date
Why is Chainlink the best-performing cryptocurrency (offered by FXTM) so far in 2023?
Besides the support from the hype surrounding a first-ever Bitcoin ETF ...
Chainlink's growth may be attributed to a surge of interest from large financial institutions, including SWIFT.
The company has also managed to secure partnership with Wemade (South Korean game developer) and Hong Kong's central bank, with the latter set to use Chainlink for its digital currency trials.