Crypto has fallen 30% through May. The headlines about scams, illegality, and outright theft obscure the key facts; its overly complex, vulnerable and doesn’t actually do anything we can’t already do better. It’s terribly clever, but a pointless, busted bubble.
Did you feel the Earth shake and judder? When dull, boring, predictable retail giants crash 25% intra-day, time to take notice. Boom/Bust is back – and this time its serious. Anyone for the last few choc-ice?
Two simple questions for Central Banks; what was their plan, and what is it now? The consequences of 14 years of monetary experimentation are upon us. From Macro to Micro, Boeing is a sad illustration of the consequences of central bank policy.
Central Banks and Politics will be the dominant theme this week/month/year. Politicians are anxious to show inflation and recession are not their fault. Blame Central Banks! The Politics of Blame has profound consequences for markets.
NFTs are in the press for all the right reasons – insider trading, zero value and scams, but as digital assets in a digital world have enormous potential – for making your wallet lighter….
ESG is getting a bad press these days, blamed for energy insecurity and much else wrong with the allocation of capital. It needs to be refined: ESG version 2.1 will be critical for addressing the massive threats arising from social injustice and income inequality.
Markets remain in a major correction – but fear not. When the hurly burly is done, what goes down and survives will (eventually) come back up! As the pain bites, I recommend the wit and wisdom of Ace Greenberg, the best banking CEO ever, a man who understood the primacy of common sense.
Yesterday’s ongoing pain in crashing financial asset markets demonstrates the need to diversify portfolios and decorrelated returns. Shipping is one such asset; returns have been boosted by scarcity as a result of the pandemic – the question is: can these returns be maintained?
