Check out what’s happening in the world this week, plus what it means for you and your investments. (3:43 min read)

This information does not take into account your personal objectives, financial situation or needs. You should consider if the relevant investment is appropriate having regard to your own objectives, financial situation and needs.

 

1. US-China trade war kept at bay

It appears the US and China have found some temporary common ground amidst their trade war battle.

High level discussions between officials from both the US and China have led to proposed tariffs being put on hold.

The world’s two largest economies have agreed to play nice for now, with the US suspending tariffs on up to $150 billion in Chinese imports, and China reciprocating by agreeing to buy more energy and agricultural products.

What does this mean if you’re invested in the stock markets?

The proposed tariffs being put on hold should be music to an investor’s ears.

The move reduces the prospect of escalating trade barriers between the US and China.

It should help maintain and potentially increase global economic growth, particularly since China has committed to significantly increasing its purchase of US goods and services.

What does this mean if you’re invested with AtlasTrend?

The trade war being on hold is also good news for AtlasTrend investors.

The global stock market reacted positively to the recent developments, with major stock markets seeing gains after the news broke.

However, we’re still keeping a close eye on the developments as they unfold with further details yet to emerge.

 

2. UK invests in AI for improved healthcare

The British government plans to transform the National Health Service (NHS) by using artificial intelligence and big data technologies to improve treatment of cancers and chronic diseases.

UK Prime Minister Theresa May said:

“The UK will use data, artificial intelligence, and innovation to transform the prevention, early diagnosis, and treatment of diseases like cancer diabetes, heart diseases, and dementia by 2030.”

What does this mean if you’re invested in AI & big data companies?

The adoption of AI and big data technologies in healthcare is a positive for the broader industry.

Two elements are necessary for big data to work its magic; technology with the ability to meaningfully analyse a huge set of disparate data (which is already available and fast improving), and greater availability of actual data.

The government stepping in should help open up data availability, which is crucial for big data companies to help the public and private health services deliver better outcomes.

What does this mean if you’re invested with AtlasTrend?

The AtlasTrend Big Data Big Fund invests specifically in the growth and smart use of big data globally.

We believe healthcare is one of the most prospective and society changing uses of big data over the next 10 years.

This is not a science fiction dream as IBM (a company that the Big Data fund is invested in) already has big data technology being used to help fight cancer.

 

3. Telstra suffers outages and share price drops

Telstra has had a horrible few weeks. First it announced its underlying profit was likely to be at the lower end of its guidance range.

More recently, for the second time in a month, it suffered a network outage which left many customers across the country unable to make calls from their mobile.

What does this mean if you’re invested in Telstra shares?

It has been a tough period for Telstra shareholders with the share price dropping by over 50% in the past 3 years.

While many investors have been attracted to Telstra’s regular dividend payments as a way to earn regular income, there is growing pressure from the market for Telstra to cut dividends and reinvest in the business.

We believe Telstra’s troubles may last for some time to come, with intensifying competition and large capital expenditures ahead.

What does this mean if you’re invested with AtlasTrend?

AtlasTrend’s managed funds are not invested in Telstra shares. The company is an excellent case study on why we never invest in a stock purely for dividend payments.

We believe Telstra has been so driven to provide a targeted level of dividends to shareholders, that it hasn’t been able to sufficiently reinvest in the business for growth.

Remember: every dollar a company pays out to investors is a dollar it can’t reinvest in the business.

Unfortunately, shareholders pay the ultimate price. There is little point in receiving reasonable dividends while also seeing your investment drop in value by half or more.

  

For more about the types of managed funds AtlasTrend provides, click here. Sign up for full details on what the Trends invest in, and access actionable investing insights. 

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About Kent Kwan

Kent Kwan is a Co-Founder of AtlasTrend, an online investment platform that makes it easy for anyone to learn and invest in trends transforming our world. Kent has over 15 years experience in financial markets including as Chief Investment Officer at Arowana International Limited, and roles at JP Morgan and Macquarie.