The S&P/ASX 200 (ASX: XJO) charged 2% higher for the week while all three US benchmarks delivered weekly gains.
As per usual, here are my three key investor takeaways from the week.
Afterpay’s crowning
The week began with a truly unexpected announcement as emerging financial giant Square (NYSE: SQ) confirmed it had made a deal to acquire Afterpay Ltd (ASX: APT) for $39 billion.
This is a somewhat rare occurrence for Australians, many of which still reminisce about buying CSL Limited (ASX: CSL) for $2 in 1992, but all too common in the US and China, the home of global technology for decades.
The question on everyone’s lips now is who is next? With investors once again flocking to Zip Co Ltd (ASX: Z1P) and the broader tech sector; but yet there may be just as many opportunities in more traditional parts of the market.
Records, records, records
Records continue to be broken, with every new level likely reducing its relevance. We live in a different world today and the days of relying on a market cap weighted index to determine the value of our share market should be a relic of the past.
An increasingly broad range of businesses are contributing to the record, as the torch passes from cyclicals like BHP Group Ltd (ASX: BHP) and Commonwealth Bank of Australia (ASX: CBA) to digitally-enabled groups and consumer giants including News Corp (ASX: NWS), Domino’s Pizza Enterprises Ltd (ASX: DMP) and Pinnacle Investment Management Group Ltd (ASX: PNI), all which reached record highs during the week.
All eyes on China
Finally, it was all about China following the government’s crackdown on much maligned ‘cram’ schools.
Despite being well flagged for many years, it surprised many investors with some quick to call the region ‘uninvestable’.
Yet just a few days later the government announced incentives for people to be fitter ahead of the Winter Olympic games, sending the apparel and sports sectors up double figures.
A more nuanced understanding of China is required than simply focusing on the headlines.