The Monthly Review: August

Despite the temporary stock market crash at the beginning of the month, followed by a quick recovery, important signals are emerging: the growth of major tech companies, such as Nvidia, seems to be slowing down. Despite strong earnings, Nvidia's shares have dropped 20% due to disappointing future forecasts. This dynamic has fueled increased volatility, accompanied by sector rotation and a redistribution of investment flows across more companies.

The stock market remains close to all-time highs, with confidence that the Fed has managed inflation well while maintaining stable growth. However, the bond market shows concerns about a possible weakening of the U.S. labor market. Powell, the Fed chair, indicated the possibility of a rate cut at the September meeting, while in Europe, the ECB took a more cautious approach with a 25 basis point cut.

Given the economic uncertainty and the upcoming U.S. elections, caution is advised in investment decisions, avoiding significant positions until greater certainties emerge.