Given that the period of August does not favor significant market analysis, I will dedicate the biggest part of today’s article to describe the need of change of the so far prevailing investment behavior, as well as the need to implement a totally different investment plan, from which two important parameters must be excluded:

Α. The opportunity for personal opinion as far as markets are concerned

Β. The choice of individual stocks out of the portfolio

When both of the above factors contribute to an investment decision, historically the portfolio’s return moves below 3,0%, inflation included.

The reason for the above introduction derives from the extreme markets’ rally from March’s lows till now, mostly supported by the rally of technological stocks. This rise has caused severe insecurity to investors, many of which kept track of the rise, maintaining a high percentage of liquidity and now they are hesitant about opening new positions in the markets.

The same occurs to large Mutual Fund managers, who rush to buy stocks at the new historic highs, since their predictions did not live up to their expectations during the previous months.

Like I have broadly mentioned in previous articles, a change of era takes place in the markets. A fund transfer from the traditional industrial non- environmental- friendly companies to the technological companies, which appear to be very sensitive towards environmental issues. It is not accidental that Exxon Mobil, once leader company of Dow Jones, will be removed from the index on August the 31th. Simply put, Exxon Mobil does not interest big investors anymore and this should be taken in serious consideration by the rest of investors.

The technological sector is not possible by any means to be evaluated. In the stock markets there may be some stocks with a distinctive hint of exaggeration, although this has no effect in the long run. This indicates large fund influxes, which have been transferred from companies such as Exxon Mobil. These influxes amount to hundreds of billions.

Furthermore, I have also mentioned before that the technological sector is much larger than we can perceive. For instance, Apple is no longer evaluated in terms of how many iPhones can sell. The company is evaluated on the basis of the ecosystem it has created and which comprises of almost 250 companies that are still in the phase of development. And of course Apple is evaluated in terms of its steadily growing share in the services’ market, through subscriptions to different Apps (other companies of the ecosystem).

Let’s take another case, which will unveil in the next days. In America, takes place a “battle” between Microsoft-Walmart and Oracle for the acquirement of american assets of popular application TikTok. The tremendous appeal of this application and the huge profits it brings, will justify a big rally for the acquirer company. TikTok is currently evaluated at over $50 billions. Therefore, it is crucial to let the market evaluate what is expensive or not.