Markets suffered a severe jolt in the early weeks of the new year. Bond yields rose sharply, and Wall Street suffered its steepest drop since the pandemic crash of March 2020. The S&P 500 fell by close to 10% from its all-time high recorded on 3rd January before a late rally reduced the loss for the month to 5.2%. Most other equity markets were dragged down with similarly large declines, but there were notable exceptions; some emerging markets benefitted from strength in commodity markets, notably oil, up +17% in January, while the UK market delivered a positive return, up +1.6% in GBP terms. UK equities have underperformed substantially in recent years, held back by an especially steep drop in economic activity during the pandemic, and by a high weighting in energy, commodity and financial stocks, representing 40% of the index, and seen by many investors as long term laggards. January saw a sharp reversal in these trends, with the UK emerging from the pandemic earlier and more robustly than other major economies, oil and mining shares enjoying a strong tail wind from commodity price rises, and financials responding to the prospect of higher interest rates, leading to improved margins and earnings.
Imperium Capital Publication
Global Matters Weekly – 21 February 2022
Taking the (not so) long view
by Robert White, CFA
“While investors cannot control their natural behavioural instincts, we should focus on what we can control. “
Market Snapshot
- Global equities fell -1.8% last week
- The ongoing geopolitical tensions and the move to price in additional rate hikes led to further declines in equities
- Brent crude returned -1.0% over the week to $93.5 a barrel
- Gold returned 2.1% to $1898.4 per ounce
Global Matters Weekly – 14 February 2022
The Boutique Premium
by Gary Moglione
“The one area in which bigger certainly may not be better is performance”
Market Snapshot
- Global equities fell -0.7% last week
- President Biden yesterday spoke with Ukraine leader Volodymyr Zelenskiy and promised to act “swiftly” in the event of Russian aggression
- Brent crude rose +1.3% to $94.44 a barrel, an eight-week rally, over concerns that Russian energy supplies could be disrupted by a Ukrainian invasion
- Gold increased by +2.8% to $1858.76
Global Matters Weekly – 07 February 2022
Stay Ahead of the Game
by Richard Parfect
“We are all influenced heavily by what we experienced in childhood – the knocks leave their marks.”
Market Snapshot
- Global equities rallied +1.9% last week
- US labour surprised despite rising Covid cases
- Brent crude rose +3.6% to $90.0 a barrel
- Gold rose +0.9% to $ 1791.5.
Global Matters Weekly – 31 January 2022
New Year’s revolutions
by Andrew Hardy, CFA
This month will see global value outperform the growth index by the most since MSCI records began in 1974
Market Snapshot
- Global equities fell -0.6% last week
- The Federal Reserve signalled a rate hike with a hawkish tilt
- Brent crude rose +2.4% to $79.3 a barrel
- Gold fell by -0.4% to $1813.