In recent months you’ve been teasing a big announcement related to HYCM’s equities offering, could you provide us with more details?
We are very excited to have recently launched over a thousand new stocks available for trading with zero commissions* and at 1:1 leverage. This expands the shares segment of our multi-asset offering, providing investors with access to names from all 11 GICS stock market sectors. HYCM investors can now enjoy a highly competitive stock trading experience, allowing them to invest in dividend-paying stocks for as little as $10, thanks to our fractional shares feature.
For us at HYCM this increased focus on equities has been a natural progression. In the past decade or so, we’ve seen an increase in financial literacy, as well as an increased appetite for stock trading due to the emergence of zero-commission* stock brokers that have appealed to a new digitally native investor. Along with our new mobile app, HYCM Trader, this recent expansion of our equities product underlines our commitment to respond to latest trends and clients’ needs.
The expansion of HYCM’s available stocks comes at an interesting time. How do you view the recent performance of US equities given the broader economic climate?
It certainly is an interesting time, particularly in US equity markets. We have seen an impressive rally since October of last year, with a recent push to new highs that came just as the rally was appearing to stall.
CPI numbers underwhelmed markets in May, not surprising to the upside or downside. Nevertheless, inflation is proving to be persistently high, even if it appears to be gradually easing. We have also seen a softening of retail sales data and a dip in consumer sentiment.
On the Fed’s side, recent member speeches have drawn attention to the fact that the Fed does not believe it has won the fight against inflation yet, but that there is growing disagreement among members regarding the path ahead. Markets are now expecting a pause in rate hikes at the next meeting with a possible cut later in the year. This appears to have encouraged a new surge of buying activity despite signs of a slowing economy, a shaky regional banking system, and the US debt ceiling looming large again.
Do you think this recent period of bullishness could be the beginning of a trend change?
It is an interesting situation because even though indices have performed very well since the beginning of the year, it’s a very narrow market that’s being held up by a small minority of large-cap stocks exerting an overwhelming influence on the main benchmarks.
These also happen to be the same stocks that are currently being driven higher by the AI narrative. If you combine this with the fact that over the past few months, market participants have been largely positioned bearishly in expectation of a recession, the direction that is set to cause the most pain to investors at the moment is probably up, and that’s what we’re seeing. For this reason, I think calling it a trend change at the moment might be slightly premature.
What do you make of the AI narrative, and how do you think it will evolve in the months and years to come?
I believe there is currently a great deal of excitement that’s bound to be justified in the long run. For now, though, we’re still in the earliest days of these technologies and it’s unclear how some of the companies whose stocks are currently benefiting from interest in AI will be able to transform this interest into more tangible products. Like the early days of the internet, there’s an exuberance because it’s clear that the technology is transformative; however, it’s uncertain what form these transformations will take and how long they will require to manifest.
Also, keep in mind that AI may have far-reaching consequences in terms of labour efficiency and productivity that could meaningfully alter the shape of society as we know it. As such, it is incredibly difficult to predict a path ahead for AI other than to say that it will undoubtedly find its way into all areas of human life just like the internet has.
I think what investors will need to come to terms with throughout the rest of the year is whether it’s a case of the right narrative at the wrong time, as was the case during the Dotcom bubble.
Gold has also performed well this year; how do you understand this occurring alongside the performance of growth stocks?
Gold and oil are two of HYCM’s most traded CFD products; both gold and oil are flashing signals that appear to be the opposite of what growth stocks are pricing in.
China’s reopening and its effect on global commodity demand and inflation have proven to have underwhelmed so far. The excitement around another China-driven commodity supercycle is currently waning. We’ve recently seen copper retracing 2023’s gains, while agricultural commodities and crude oil have retreated to levels last seen during the pandemic.
The combination of persistent inflation, an uncertain economy, and global rates seeming to have peaked for the current cycle is the perfect storm for gold, which is up more than 20% from the lows of late last year, even when you consider the recent sell-off.
After such a sustained and powerful move up, the recent pullback is healthy, and I believe investors will be eager to allocate more capital to gold on every dip.
Having successfully delivered HYCM’s new mobile platform and this most recent addition to your product offering, what are your priorities going forward?
Our mobile-first approach combined with our new expanded stock selection, zero commissions*, and fractional shares makes us a one-stop solution for modern investors to trade a wide range of asset classes and individual symbols.
We can now serve not only advanced investors and day traders, but any type of market participant. The long-standing FX traders may now discover an interest in the equity markets, while modern investors and new participants may come in due to zero commissions*, or crypto, only to develop an interest in forex or the commodity markets.
The aim is to continue to bring various kinds of traders and products together via an elegantly simple-to-use and powerful mobile application, backed by a professional trading infrastructure in a regulated environment, a multi-asset universe, and a wealth of educational and analytical support via our HYCM Lab blog.
Trade with HYCM
Note: Cryptocurrencies and zero-commission stocks are not available for trading under HYCM (Europe) Ltd and HYCM Capital Markets (UK) Limited.
*Other fees may apply, such as withdrawal fees, dormant account fees, swaps, and spreads.
About: HYCM is the global brand name of HYCM Capital Markets (UK) Limited, HYCM (Europe) Ltd, HYCM Capital Markets (DIFC) Ltd, HYCM Ltd, and HYCM Limited, all individual entities under HYCM Capital Markets Group, a global corporation operating in Asia, Europe, and the Middle East.
High-Risk Investment Warning: Contracts for Difference (‘CFDs’) are complex financial products that are traded on margin. Trading CFDs carries a high degree of risk. It is possible to lose all your capital. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent expert advice if necessary and speculate only with funds that you can afford to lose. Please think carefully whether such trading suits you, taking into consideration all the relevant circumstances as well as your personal resources. We do not recommend clients posting their entire account balance to meet margin requirements. Clients can minimise their level of exposure by requesting a change in leverage limit. For more information please refer to HYCM’s Risk Disclosure.
*This material is considered a marketing communication and should not be construed as containing investment advice or an investment recommendation, or an offer of or solicitation for any transactions in financial instruments. Past performance is not a guarantee of or prediction of future performance. HYCM does not take into account your personal investment objectives or financial situation. HYCM makes no representation and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast, or other information supplied by an employee of HYCM, a third party, or otherwise.
In recent months you’ve been teasing a big announcement related to HYCM’s equities offering, could you provide us with more details?
We are very excited to have recently launched over a thousand new stocks available for trading with zero commissions* and at 1:1 leverage. This expands the shares segment of our multi-asset offering, providing investors with access to names from all 11 GICS stock market sectors. HYCM investors can now enjoy a highly competitive stock trading experience, allowing them to invest in dividend-paying stocks for as little as $10, thanks to our fractional shares feature.
For us at HYCM this increased focus on equities has been a natural progression. In the past decade or so, we’ve seen an increase in financial literacy, as well as an increased appetite for stock trading due to the emergence of zero-commission* stock brokers that have appealed to a new digitally native investor. Along with our new mobile app, HYCM Trader, this recent expansion of our equities product underlines our commitment to respond to latest trends and clients’ needs.
The expansion of HYCM’s available stocks comes at an interesting time. How do you view the recent performance of US equities given the broader economic climate?
It certainly is an interesting time, particularly in US equity markets. We have seen an impressive rally since October of last year, with a recent push to new highs that came just as the rally was appearing to stall.
CPI numbers underwhelmed markets in May, not surprising to the upside or downside. Nevertheless, inflation is proving to be persistently high, even if it appears to be gradually easing. We have also seen a softening of retail sales data and a dip in consumer sentiment.
On the Fed’s side, recent member speeches have drawn attention to the fact that the Fed does not believe it has won the fight against inflation yet, but that there is growing disagreement among members regarding the path ahead. Markets are now expecting a pause in rate hikes at the next meeting with a possible cut later in the year. This appears to have encouraged a new surge of buying activity despite signs of a slowing economy, a shaky regional banking system, and the US debt ceiling looming large again.
Do you think this recent period of bullishness could be the beginning of a trend change?
It is an interesting situation because even though indices have performed very well since the beginning of the year, it’s a very narrow market that’s being held up by a small minority of large-cap stocks exerting an overwhelming influence on the main benchmarks.
These also happen to be the same stocks that are currently being driven higher by the AI narrative. If you combine this with the fact that over the past few months, market participants have been largely positioned bearishly in expectation of a recession, the direction that is set to cause the most pain to investors at the moment is probably up, and that’s what we’re seeing. For this reason, I think calling it a trend change at the moment might be slightly premature.
What do you make of the AI narrative, and how do you think it will evolve in the months and years to come?
I believe there is currently a great deal of excitement that’s bound to be justified in the long run. For now, though, we’re still in the earliest days of these technologies and it’s unclear how some of the companies whose stocks are currently benefiting from interest in AI will be able to transform this interest into more tangible products. Like the early days of the internet, there’s an exuberance because it’s clear that the technology is transformative; however, it’s uncertain what form these transformations will take and how long they will require to manifest.
Also, keep in mind that AI may have far-reaching consequences in terms of labour efficiency and productivity that could meaningfully alter the shape of society as we know it. As such, it is incredibly difficult to predict a path ahead for AI other than to say that it will undoubtedly find its way into all areas of human life just like the internet has.
I think what investors will need to come to terms with throughout the rest of the year is whether it’s a case of the right narrative at the wrong time, as was the case during the Dotcom bubble.
Gold has also performed well this year; how do you understand this occurring alongside the performance of growth stocks?
Gold and oil are two of HYCM’s most traded CFD products; both gold and oil are flashing signals that appear to be the opposite of what growth stocks are pricing in.
China’s reopening and its effect on global commodity demand and inflation have proven to have underwhelmed so far. The excitement around another China-driven commodity supercycle is currently waning. We’ve recently seen copper retracing 2023’s gains, while agricultural commodities and crude oil have retreated to levels last seen during the pandemic.
The combination of persistent inflation, an uncertain economy, and global rates seeming to have peaked for the current cycle is the perfect storm for gold, which is up more than 20% from the lows of late last year, even when you consider the recent sell-off.
After such a sustained and powerful move up, the recent pullback is healthy, and I believe investors will be eager to allocate more capital to gold on every dip.
Having successfully delivered HYCM’s new mobile platform and this most recent addition to your product offering, what are your priorities going forward?
Our mobile-first approach combined with our new expanded stock selection, zero commissions*, and fractional shares makes us a one-stop solution for modern investors to trade a wide range of asset classes and individual symbols.
We can now serve not only advanced investors and day traders, but any type of market participant. The long-standing FX traders may now discover an interest in the equity markets, while modern investors and new participants may come in due to zero commissions*, or crypto, only to develop an interest in forex or the commodity markets.
The aim is to continue to bring various kinds of traders and products together via an elegantly simple-to-use and powerful mobile application, backed by a professional trading infrastructure in a regulated environment, a multi-asset universe, and a wealth of educational and analytical support via our HYCM Lab blog.
Trade with HYCM
Note: Cryptocurrencies and zero-commission stocks are not available for trading under HYCM (Europe) Ltd and HYCM Capital Markets (UK) Limited.
*Other fees may apply, such as withdrawal fees, dormant account fees, swaps, and spreads.
About: HYCM is the global brand name of HYCM Capital Markets (UK) Limited, HYCM (Europe) Ltd, HYCM Capital Markets (DIFC) Ltd, HYCM Ltd, and HYCM Limited, all individual entities under HYCM Capital Markets Group, a global corporation operating in Asia, Europe, and the Middle East.
High-Risk Investment Warning: Contracts for Difference (‘CFDs’) are complex financial products that are traded on margin. Trading CFDs carries a high degree of risk. It is possible to lose all your capital. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent expert advice if necessary and speculate only with funds that you can afford to lose. Please think carefully whether such trading suits you, taking into consideration all the relevant circumstances as well as your personal resources. We do not recommend clients posting their entire account balance to meet margin requirements. Clients can minimise their level of exposure by requesting a change in leverage limit. For more information please refer to HYCM’s Risk Disclosure.
*This material is considered a marketing communication and should not be construed as containing investment advice or an investment recommendation, or an offer of or solicitation for any transactions in financial instruments. Past performance is not a guarantee of or prediction of future performance. HYCM does not take into account your personal investment objectives or financial situation. HYCM makes no representation and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast, or other information supplied by an employee of HYCM, a third party, or otherwise.
