Category Alternative Assets

Shipping – a real world asset class, but complex!

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?

Wind, Carbon Life-Cycle Costs, and Why we need Other Renewables..

Wind power is the not the renewable energy panacea we are told it is. It is part of the climate change solution, but we need to understand it’s limitations, and not allow it to distort energy transition. More should be spent on alternatives like tide, hydro and thermal.

Bond Markets – Don’t Panic Captain Mainwaring (but don’t look behind you…)

In bonds there is pain as prices tumble – but that does not change the fundamentals of investing in bonds. The risk is rising bond yields will expose the dangerous over-valuations low rate distortion has caused across other financial-assets, perhaps causing more than a few bubbles to pop.

Global Travel may reopen – but just how uncertain is the outlook for aviation?

Airlines are likely to get a knee-jerk boost when global travel reopens post pandemic, but the outlook facing the aviation sector in terms of balance sheet shattered airlines, struggling aircraft manufacturers, reluctant consumers and a glut of older aircraft has seldom been so uncertain. Yet, in times of confusion there is opportunity!

A series of unpredictable things that might or might not happen in 2022!

Occasionally the Morning Porridge strikes a lucky insight on markets – this morning here are some thoughts on how 2022 markets and events may or may not develop. If they occur I shall hail myself an investment genius. If not, can we quietly forget them?

The Central Bank Quandary: Inflation vs Recovery

Jay Powell keeps his job and faces the inflation quandary – hiking rates too soon risks recovery, but inflation needs addressed. The likelihood is lower rates for longer – which will juice euphoric markets further. What’s the alternative? Stop buying financial assets and buy the real economy!

Investment Guidelines for the Zeitgeist Market

The outlook for the UK looks rosier as pubs reopen, vaccinations beat targets, and the economy grows. But, how should investors be looking at markets when financial assets already look overpriced, and there are clear bubble risks ahead? It’s a matter of staying calm, reading the runes and understanding the markets new mindset!