“As long as the dollar remains in high esteem as a trade currency, America can continue to spend more than it earns. But when the day arrives – as it certainly must – when the dollar tumbles and foreigners no longer want it, the free ride will be over.” G. Edward...
“Semiconductors are the silent driver of all the advancements in the digital world.” Morris Chang, founder of TSMC The second quarter was a tale of two halves, particularly in equity markets. Until mid-May, with investor sentiment buoyed by the prospect of cooling...
“Courage is willingness to take the risk once you know the odds. Optimistic overconfidence means you are taking the risk because you don’t know the odds. It’s a big difference.” Daniel Kahneman The year so far has seen incremental evidence pointing towards stickier...
“Success means being very patient, but aggressive when it’s time.” Charles Munger We finished the year with a significant shift in interest rate expectations, a central component of the financial system. With rates having risen substantially over the last two years,...
"Winning or losing of the election is less important than strengthening the country.” Indira Gandhi The third quarter in markets was characterised by a shift in focus from inflation to growth. Inflation data in developed markets, whilst still elevated, showed some...
“Innovation and corporate governance are extremely important to improve the profitability of Japanese companies and encourage them to increase wages, capital spending, and dividends.” Shinzo Abe, former Prime Minister of Japan If markets in 2022 were characterised by...
“Banking is very good business if you don't do anything dumb." Warren Buffett This year started with a sharp rally in equity markets. Having entered the year with our portfolios cautiously positioned, including a higher cash balance than we would ordinarily hold, we...
"Change is the law of life. And those who look only to the past or present are certain to miss the future." John F. Kennedy A glance at the returns of all major asset classes over the past 12 months would confirm that 2022 has been incredibly challenging for...
“We all need to get the balance right between action and reflection. With so many distractions, it is easy to forget to pause and take stock.” Queen Elizabeth II At the start of the summer, a traditionally quieter time for trading activity, investors around the world...
“Inflation, like the genie in the lamp, is very difficult to control when it is released.” Iván Martín, Magallanes We are leaving behind the worst quarter for global equities and bonds in aggregate since 1990. With inflation remaining stubbornly high, central banks...