What’s the link between luxury spending, crypto fx and leverage risk?

Is there a correlation between luxury spending in the U.S. and crypto forex trading? A comparison between the Bitcoin and US dollar (XBT/USD) currency pair and the stock price of luxury giant LVMH Moët Hennessy Louis Vuitton SE (MCP-TRQX) shows a potential correlation between luxury spending and cryptocurrency trading.

The true cost of tariffs

President Donald Trump didn’t waste any time after taking office for his second term, quickly rolling out his ‘America-first’ tariff plan.

Trump said his administration would slap a 25% tax on goods from Canada and Mexico, the biggest buyers of US products, and a 10% tax on imports from China.

Investors should remember that market moves won’t be straightforward from here on out, and things have gotten more uncertain and volatile. As such, defensive stocks and sectors, especially those that offer protection against a weakening rand, are probably a good place to shelter for now.

Is it time to switch to cyclical stocks?

With a slowdown in growth likely, professional investors like the institutional investment team at Investec are recommending a rotation away from the expensive tech stocks that delivered significant growth in 2024, and a shift in focus to cyclical stocks.

Thematic investing explained

Investors have different strategies at their disposal to express their investment thesis, with the use of a thematic investing approach gaining significant traction in recent decades.

Thematic investing is a forward-looking approach that aims to capitalise on emerging themes and predicted long-term trends rather than immediate market fluctuations or the fundamentals of individual companies.