Imperium Capital Publication

Global Matters Weekly – 27 June 2022

Inflationary pressures

by Jackson Franks

With the construction industry under significant pressure, current asset owners may be the beneficiaries. Due to the ever-rising costs in developing a new asset, the new supply coming to the market is minimal. Berkley Group, one of the UK’s largest home builders, recently announced that the number of new homes being built in London could halve in the coming years because of these rising costs. With a lack of new supply entering the market, competition for existing space may intensify, enabling landlords to take advantage as supply and demand dynamics shift across sub-sectors.


Market Snapshot

  • Global equities fell 2.0% last week
  • The World Bank became the latest body to downgrade their global growth forecast and openly warned about the risk of stagflation, now projecting a 2.9% rise in GDP for 2022 compared to a 4.1% estimate in January
  • Brent crude rose 2.8% to $123.1 a barrel
  • Gold fell 0.1% to $1848.8 per ounce.

Global Matters Weekly – 20 June 2022

Striking a chord

by Mark Wright, CFA

Just over a month ago the United Kingdom (UK) reversed years of embarrassment to finish second place in the Eurovision Song Contest. Sam Ryder’s ‘Space Man’ impressed but was pipped to the post by Ukraine’s entry, ‘Stefania’ by Kalush Orchestra.

Popular opinion is that politics has a big influence on how votes are cast, and this year’s result did nothing to dispel those suspicions.


Market Snapshot

  • Global equities fell by 5.9% last week
  • All major world indices logged another big week of losses
  • Brent crude fell by 7.3% last week to $113.1 per barrel
  • Gold fell by 1.7% to $1839.4 per ounce.

Viewpoint – May 2022

The brutal sell-off in markets this year finally stabilised during May, although the rally was by no means uniform, and investor sentiment remained nervous in the face of intense uncertainties about inflation, growth, and the unfolding impact of the war in Ukraine. No single catalyst triggered the rally, rather a combination of factors: signs of a consumer squeeze and economic slowdown ahead, leading to a sense that inflation is nearing a peak and the Fed’s hawkish policy shift could be enough to bring it under control; improved valuations leading to some dip-buying and a short squeeze in some of the big tech stocks which have been hammered this year; a weaker dollar; and China’s support for its ailing economy and loosening of covid restrictions in major cities.

Global Matters Weekly – 13 June 2022

Emerging outperformance?

by Tom Delic

An investor in Emerging Market (EM) equities over the last 12 years has had a torrid time. The asset class has not only suffered poor returns in both absolute terms since 2010, but also relative to Developed Market (DM) equities, with the latter being driven by the strength of the US equity market.


Market Snapshot

  • Global equities fell 2.0% last week
  • The World Bank became the latest body to downgrade their global growth forecast and openly warned about the risk of stagflation, now projecting a 2.9% rise in GDP for 2022 compared to a 4.1% estimate in January
  • Brent crude rose 2.8% to $123.1 a barrel
  • Gold fell 0.1% to $1848.8 per ounce.

Global Matters Weekly – 6 June 2022

A jubilant subject

by Robert White, CFA

While we generally do our best to avoid home bias here at Momentum, I propose to break that rule today in recognition of last week’s Platinum Jubilee celebrations. Whatever your views on the monarchy, no one can deny that to serve one’s country as Head of State for 70 years is truly an impressive feat. Since her ascension to the throne on February 6th 1952, Queen Elizabeth II has lived through seven recessions, met 13 US Presidents and outlasted 14 UK Prime Ministers.


Market Snapshot

  • Global equities fell 0.8% last week
  • Russia’s war with Ukraine passed the 100th day
  • Brent crude rose 0.2% to $119.72 a barrel
  • Gold returned -0.1% to $1851.19 per ounce.