Imperium Capital Publication

Global Matters Weekly – 14 March 2022

Mind the Gap

by Mark Wright, CFA

The latest elevated CPI print of 7.5% has spooked investors this year, triggering volatility in both bond and equity markets. In trying times, it sometimes helps to take the long view. In a recent paper the Bank of England has taken this advice to the extreme, looking back 800 years to the 14th century to calculate the average global GDP-weighted inflation rate of just 1.51%1. Unfortunately, 800 years is not a particularly sensible investment horizon for most people, but there are plenty of other more relevant periods for us to examine when considering the importance of current economic events


Market Snapshot

  • Global equities declined -1.9% last week
  • The Russian invasion continues with 2.5M Ukrainians having fled the country
  • Brent crude fell -4.6% to 118.11 a barrel, and the USA banned oil imports from Russia
  • Gold gained +0.9% to $1970.7 per ounce

Global Matters Weekly – 7 March 2022

Goodbye to Greenwashers

by Michael Clough, CFA

“For fund selectors the key questions are: who is genuine and how do they stack up versus a burgeoning list of peers?”


Market Snapshot

  • Global equities fell -2.8% in a turbulent week for world markets
  • President Vladimir Putin announced that the war will continue until Ukraine accepts his demands and halts resistance, dimming hopes for a negotiated settlement
  • Brent crude rose +20.6% to $118.1 a barrel
  • Gold rose +4.3% to $1970.7 per ounce

Global Matters Weekly – 28 February 2022

Style Box

by Tom Delic

“Boxing styles will ultimately determine how exciting a fight is. This is not too dissimilar to investment styles, where some work better together than others. “


Market Snapshot

  • Global equities fell -0.1% last week
  • Last week saw major developments in Ukraine with Russia launching a full-scale invasion of the country. Western governments have moved to place various sanctions on Russia
  • Brent crude returned +4.7% over the week to $97.9 a barrel
  • Gold returned -0.5% to $1889.3 per ounce

Viewpoint – January 2022

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.

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.

Global Matters Weekly – 24 January 2022

DiversiChination

by Lorenzo La Posta, CFA

Now, everyone loves a free meal but certainly you’re not going to eat it only because it’s free, am I right?


Market Snapshot

  • Global equities fell -4.7% last week
  • Risk markets across the world saw declines amidst inflation and interest rate concerns
  • Brent crude rose +2.1% to $87.9 a barrel
  • Gold increased by +1% to $1835.4

Global Matters Weekly – 17 January 2022

Making money in bonds

by Richard Stutley, CFA

Last year, US Treasuries suffered one of their worst years this century


Market Snapshot

  • Global equities fell -0.1% last week
  • US inflation hit 7% in December as prices climbed at rates unseen for decades
  • Brent crude returned 5.3% over the week to $86.1 a barrel
  • Gold returned 1.2% to $1817.9 per ounce