Imperium Capital Publication

Global Matters Weekly – 14 December 2020

Scotched eggs

by Alex Harvey, CFA
When I was a kid, the concept of wolves being dangerous, aggressive animals was instilled in me: they growl, they stalk, they kill. Yet, have you ever heard spine-tingling howls breaking through the night? It is primordially majestic. As I grew up, I found myself seeing wolves as fascinating, widely misunderstood creatures. I had to find my own pack.

Wolves work together to hunt for food, protect their territory and expand their reach. United they stand, divided they fall. Led by two alphas, they know they are only as strong as the weakest of them. Also, they have a set social structure and rules by which each wolf has its own function but everyone, including the alphas themselves, takes care of and raises the pups. It’s all about the team.


Market Snapshot

  • Global equity markets returned -0.7% last week as lockdown measures escalate in key markets.
  • The US is to begin administrating the Pfizer/BioNTech vaccine imminently as daily deaths top 3000.
  • Brent crude oil rose +1.5% to $49.9 a barrel.
  • Gold rose +0.1% to $1839.9 per ounce

Global Matters Weekly – 7 December 2020

A pack of wolves

by Lorenzo La Posta, CFA
When I was a kid, the concept of wolves being dangerous, aggressive animals was instilled in me: they growl, they stalk, they kill. Yet, have you ever heard spine-tingling howls breaking through the night? It is primordially majestic. As I grew up, I found myself seeing wolves as fascinating, widely misunderstood creatures. I had to find my own pack.

Wolves work together to hunt for food, protect their territory and expand their reach. United they stand, divided they fall. Led by two alphas, they know they are only as strong as the weakest of them. Also, they have a set social structure and rules by which each wolf has its own function but everyone, including the alphas themselves, takes care of and raises the pups. It’s all about the team.


Market Snapshot

  • Global equities rose +1.5% last week on the back of further positive news regarding vaccine rollouts
  • The UK becomes the first country to approve the Pfizer/BioNTech covid-19 vaccine, which will be rolled out this week
  • Brent crude rose +2.2% ending the week at $49.3 a barrel
  • Gold rose +2.9% to end the week at $1838.9 an ounce

Global Matters Weekly – 30 November 2020

A Brief History of How to Lose Money

by Richard Stutley, CFA
With global equities on track to deliver their best-ever month, against a backdrop of the deepest recession since the Second World War, investors are understandably questioning whether markets have come back too far and too fast. Valuations appear rich in certain areas but trying to time the market is notoriously difficult and can lead to disappointment. At times like this it is worth reflecting on the common ways in which investors suffer permanent impairment of capital as opposed to short term fluctuations in the value of their investments. While the history of finance is long and varied, three factors appear time and again in this regard: counterparty risk, leverage and liquidity. This is a good place for investors to start when appraising risk in their portfolios.


Market Snapshot

  • Global equities rose +2.4% last week on the back of further positive vaccine news
  • The Oxford/AstraZeneca vaccine has been shown to have a high efficacy rate, though this will be subject to further testing
  • Brent crude rose +7.2% ending the week at$48.2 a barrel
  • Gold fell -4.4% to end the week at $1787.8 an ounce