A Steady Ship in a Stormy Sea

As predicted, the first quarter of 2023 was a tumultuous one, with the scattered effects of the past few stormy years still being felt across all different sectors of the economy. Continued rising global tensions and war in Eastern Europe, along with rising interest rates in the US and a possible banking crisis looming on the horizon may seem like enough to strike fear into the heart of anyone, but despite all this apparent instability, Cashbox Global remains deeply committed to designing predictable investment opportunities for our community, and keeping you informed every step of the way. Let’s take a look at some of the major socioeconomic events of the last three months that you may find of interest, as well as at Cashbox Global updates on how we remain determined to guide your ship through this stormy sea.

Rising Tensions and Rising Tides
The impact of the current war in Eastern Europe is still being felt across the world, causing rising oil prices and energy deficits that affect the entire global economy, not to mention the humanitarian crisis caused by of thousands of deaths and millions of displacements due to the conflict. The discord between the sister states of Ukraine and Russia is also causing a polarisation between other European countries, driving the continent towards a new era, reminiscent of the Cold War. Tensions have also continued to rise in the South China Sea between the Eastern giant and its smaller neighbours like Taiwan and Vietnam, as well as between the USA, North Korea and South Korea, creating further fissures in the global economic and social order. On a positive note, however, now that internal politicking in the UK has somewhat subsided, the UK and Europe are finally making some headway in resolving the long-standing Brexit issues.

Sinking Ships or False Alarms?
March saw disturbing ripples on the surface of the banking system, with the sinking of some smaller regional US banks, as well as a larger global Swiss bank. Although there are sure to some long term effects of this in the form of stricter regulations and increased scrutiny of certain banks, the local governments for the various defunct banks were exceptionally quick to calm the waves of turmoil, indicating that there is, as of yet, no cause to panic and scramble for the lifeboats.

A Lighthouse in the Storm
Despite trouble in Europe and in the banking sector, the world’s largest economy seems to be weathering the storm rather swimmingly, with the US recording a very strong first quarter for its markets, namely the S&P 500 and NASDAQ, which rallied 7% and 16.8%, respectively, while the Dow climbed up about 0.4%. These results could indicate a possible lighthouse at the end of this economic depression, as the strength in the first quarter of 2023 is a far cry from the dismal performance the broader market experienced in the first quarter of 2022, which saw the S&P 500 and Dow fall about 5% and 4.6%, respectively, while the NASDAQ dropped 9.1%. Global interest rates have continued their steady growth, but the general consensus is that the harsh increments taken by central banks are slowing down, with inflation metrics presenting evidence that the cycle will slow, bringing us ever closer towards the end of the storm.

Confidently Captaining Your Ship
Despite all of this apparent global instability, Cashbox Global remains at the forefront of intelligent finances and we remain dedicated to guiding our clients through inclement economic weather by facilitating predictability and stability. From a Cashbox Global perspective, we are very happy – over the past quarter, we have had 26 Income Observations, 5 Memory Feature triggers, and 2 Autocalls, despite all the market turmoil.

Part of our identity as Cashbox Global is our passion for working with investor communities and we remain committed to providing education and opportunities that enable them to succeed. It has been an honour to regularly present to the International Academy of Wealth members, sharing insights and perspectives on Structured Notes and their place in a diversified portfolio when taking into account their money rules. We were also invited to partner with Annemarie Swanepoel Attorneys on Tuesdays with Cashbox Global, where we provided their Facebook followers tips for savvy investors. We truly believe in the power of collaboration, and through these partnerships, we are honoured to be part of investors’ journeys toward financial success.

Moving forward, we remain steadfast in our commitment to providing innovative solutions and first-rate service that help our community to understand Structured Investment Products as a diversification tool. We thank you for your continued trust in us, and we look forward to working with you throughout the remainder of the year.

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