Based in Melbourne, Zech Zheng is a highly qualified finance expert with a background in investment banking and more than a decade of trading experience. He is the sixth most-copied PI on the eToro platform, with more than 11,000 retail investors closely following his moves in the market.
With a Master’s in Finance, a Bachelor’s in Accounting and a degree in Banking and Finance, it may come as no surprise that Zheng is also a member of the high-IQ society Mensa. He is a strong advocate of reading renowned finance books and using trusted online resources, such as the eToro Academy, as a path to investing success.
Lessons learned from the 2023 market
Based on Elon Musk’s acquisition of Twitter in the 2023 fiscal year, the merger arbitrage market appears to be highly undervalued. For context: merger arbitrage traders essentially invest in the likely outcomes of deal negotiations between listed companies. The Microsoft-Activision deal in October also represented a missed opportunity for many in the arbitrage world.
Broadly speaking, the US has continued to dominate, outperforming the rest of the world, and I believe this will continue in 2024.
Three things to watch in 2024
- China and the US
The US elections are going to be interesting, especially if Trump is nominated by the Republican Party. China is attempting an economic recovery with limited success, and a change in the US presidency could have a massive impact on the ongoing trade and export standoff between the two countries.
- Interest rates
Globally, the market is wondering whether and when central banks will cut rates next year. Cuts of 100 basis points are expected in the US, but the Federal Reserve is signalling higher for longer, so markets are likely to act with some caution.
- Sustainable stocks
Renewable energy stocks have taken a beating due to investors’ growing perception that it is an unprofitable technology. The silver lining in 2024 for sustainable investments is that they could recover if significant interest rate cuts occur over the course of the year.
However, when it comes to a major trend reversal, I believe nuclear energy will probably be the sector that experiences a true renaissance in 2024, possibly outperforming all other alternative green energy sectors.
