Market Matters

June 10th: Africa's Decade

Whilst sub-Saharan Africa continues to struggle with massive energy deficits, it only accounts for approximately 2% of new renewables energy spend. A continent blessed with solar irradiation resources is particularly well positioned, and in need of, realising the transition as soon as it pragmatically can.

Source: ARIA, Bloomberg

June 3rd: Chinese Bull

There are more than a few reasons to suspect the Chinese stock market has seen an intermediate, and probably long term bottom. Not least the historic spike in short positions in the Chinese FXI ETF, suggests selling had reached an extreme.


Source: ARIA, Bloomberg

May 27th: The curious case of Gold and Bond Yields

Usually rising interest rates would at least cap Gold's price appreciation. In fact, often the two demonstrate an inverse relationship. However, in the recent past, even whilst bond yields have moved higher, Gold has appreciated nonetheless - in part no doubt driven by geo-political tensions perhaps.


Source: ARIA, Bloomberg

May 20th: The 'Mag 7''s increasing influence

US large cap tech, notably Nvidia in recent times, have often accounted for much of the wide US market's performance. However, rarely have they accounted for our 30% of the market's capitalisation.


Source: ARIA, Bloomberg

May 13th: US Construction Capex Drives Interest Rates

Biden's tenure has been characterised with three major pieces of legislation, including the Inflation Reduction Act, that has generated massive infrastructure spend. Such large government fiscal stimulus tends to lead higher interest rates, although the pace has begun to slow more recently, perhaps removing one tailwind for the 'higher for longer' narrative.


Source: ARIA, Bloomberg

May 6th: Historically Stretched US Tech Valuations Relative to Wider Global Equities

The outperformance of US tech is not new news, and much of it justified by earnings. However, relative valuations have reached levels where historically, the gap has then closed. US Tech will need to continue to deliver outsized earnings, or else mean reversion will likely set it.


Source: ARIA, Bloomberg