Are emerging markets taking too much credit?
Occasionally we see a chart that makes us really stop and take note. The chart below, published by JP Morgan and sourced from the Bank of International Settlements, illustrates the level of credit extended to the non-financial corporate sectors of developed markets (“DM”) versus emerging markets (“EM”) over time. Expressed as a percentage of GDP, […]
Is Glencore in a precarious position?
The story of Glencore, the Swiss-based commodity producer and trader, is a fascinating one. Originally founded in 1974 by Marc Rich, as Marc Rich & Co, the company was bought out by management (including current CEO and major shareholder, Ivan Glasenberg) in 1994 following an internal dispute. Wishing to rid itself of an association to […]
Top strategies for investing in Asia
In this column, published by the Australian Financial Review, Montaka’s Christopher Demasi comments on the demand for smartphones in emerging markets. Read here.
Make no mistake, there is a problem in the Chinese banking system
This report summarises a number of the key insights and analyses we use to support our strong hypothesis that there is a problem in the Chinese banking system and credit quality is deteriorating rapidly. We make the following key observations: Credit quality is clearly deteriorating – particularly in the corporate sector. The deterioration in credit […]
To go back in time…
I was recently asked when the best time to start a new fund might have been. Not that most fund managers really have control over this, however, if I could go back in time, around 1988 would be a good place to start. Immediately you might think my answer has something to do with the […]
Chinese currency devaluation – what it signals
On August 11, China’s central bank announced the largest one-day devaluation of its currency in two decades, reducing its target level by 1.9% against the USD. We believe this development is drastic and is negative for two key reasons: The devaluation is the clearest signal yet that the Chinese economy is deteriorating – and likely […]
WHY U.S. INTEREST RATES MAY NOT RISE ANYTIME SOON…
Everybody knows US interest rates are set to rise. Just ask Janet Yellen, or any other member of the Board of Governors of the Federal Reserve System (the “Fed”). Just look at Fed Fund Futures which reflect market expectations for future interest rates. Indeed, it is difficult to find anyone who is not absolutely convinced […]
Be different but be sure you’re right
In this column, published in the Herald Sun, Andrew Macken discusses the drivers of headwinds that continue to challenge the producers of coal globally. Read here.
Five megatrends shaping new investment opportunities
Although Australia has a bustling economy, we sometimes forget it represents just two per cent of the global economy. This presents Australian investors with a challenge and an opportunity to identify and gain exposure to some of the largest structural global megatrends. Why consider megatrends when investing in stocks? Structural trends can provide a sustained […]
Making sense of the Hong Kong collapse
It was a tumultuous day on July 8th in Hong Kong. The 5.8 percent collapse in the Hang Seng Index marked the sharpest one-day fall in the equity index since 2008. Meanwhile, on the Chinese Mainland, the country’s casino-like stock market continued its roller-coaster ride. Chinese Mainland equities have lost more than US$3.5 trillion value […]
