Central banks are going green to questionable avail while stirring risks
A loss of autonomy to fight inflation is just one of the dangers. Finland’s forests, which cover more than 70% of the country, are the subject of a continent-wide debate on how to halve EU carbon emissions by 2030. Policymakers, environmentalists, companies and the public are arguing over whether the forests should remain untouched, and…
Will the world economy avoid an inflationary bust?
Today’s high inflation is being compared to the 1970s. However, robust consumer spending, fuelled by pandemic savings, makes for a different set of circumstances. Memories of the 1970s were evoked as the price of Brent crude oil temporarily climbed above $139 a barrel in the wake of Russia’s invasion of Ukraine. That was a period…
Gold mining companies fundamentals
The mid-tier and junior gold miners in their sector’s sweet spot for upside potential have powered higher in recent months. Amplifying gold’s young upleg, they have already surged to major breakouts. And the smaller gold miners’ gains are likely to grow much larger. Their recently-reported Q4’21 earnings season revealed ongoing strong fundamentals. Those along with…
Cutting the petrol tax and other budget things
Cutting petrol tax to bring down the cost of living used to be the political version of a joke. Failed US presidential candidates John McCain and Hillary Clinton both tried it in 2008. Their bipartisan advocacy of a “summer gas tax holiday” was derided as dumb, a turkey and a “metaphor for the entire campaign”….
How climate solutions could cut our energy bills
How climate solutions could cut our energy bills Tensions in the Ukraine and the threat to Europe’s gas supply are the latest chapter in the saga of volatile energy prices. For many policymakers, this will reinforce long-held concerns about the vulnerability of fossil fuel imports. But more immediately, it exacerbates the cost of living crisis….
Central banks face a difficult choice
With Russia and Ukraine at an impasse, commodity prices are surging and the risk of stagflation increases. Given the challenging backdrop, we remain defensive, liquid and focused on managing downside risk and preserving capital. Recent news has been dominated by the conflict in Ukraine. This is a humanitarian crisis, and our hearts go out to…
Gold – the only ‘safe haven’ asset?
Gold prices have risen amid the Ukraine crisis. However, as this shocking situation evolves, we think gold remains set to become the ‘TINA’ (there is no alternative) safe haven asset. The Russian invasion of Ukraine has had many consequences – first and foremost is its devastating humanitarian impact. While we cannot lose sight of how…
Acceleration to Asia
In the last two decades, Asia has become a powerhouse of global growth. Demographics and digitalisation have fuelled economic and business expansion, and this has played an important feature in the management of the COVID-19 crisis and the region’s resilient economy. Looking ahead to a post-pandemic world, we believe a new economic order will prevail,…
What inflation means for fixed income portfolios
With Australian core inflation spiking in December, it is essential to consider the impact of inflation on asset allocation. Persistent high inflation has several implications for credit markets, which we believe need to be managed via both fixed and floating rate strategies. There are also a few options for investors looking to mitigate the impact…
Automation and reshoring – key investment themes
The twin themes of automation and reshoring will bring opportunities for investors for years to come. We look at the reasons behind their rise and their ESG implications. Among the many trends accelerated by the pandemic are automation and reshoring, which is when a company brings production closer to its home market. However, this is…
