“In yacht racing there is no second.”
Sports has become a major investment sector in recent years. An increasing number of funds are focused on sporting opportunities. The appeal, and the possibilities to monetise fans and events is rising. Why invest?
Would you rather lose your job to stagflation, recession or deflation? Argentina’s voters have gone for the populist option – good luck! OpenAI – I guess the genie is out the bottle.
What matters more; a new smart-phone or food security? Spending billions developing AI to make life more confusing, or improving the environment and social cohesion? Science and Technology can address humanity’s biggest problems – but how do we ensure they are focused on the right ones?
This week’s “shock” announcement of a major aero-engine maintenance crisis with RTX engines on Airbus Neo Narrowbodies is reverberating round the aircraft market. It pushes up the value of older aircraft – and will impact many airlines.
Markets are treading water trying to figure out directions – some of the underlying narratives look alluring, but they are not all they seem. In confused, uncertain markets, the trick is to remain suspicious of what others are following.
Nvidia and Telsa trade on hopes and expectations, FOMO and huge PE multiples. They are very different investment propositions but reflect the bubble market. Maybe it’s time to revert to dull, boring, predictable returns in fixed income secured by real assets?
The news “green” Pratt & Whitney engines don’t work very well on new aircraft puts a whole new slant on the economics of airlines – favouring mid-life planes over less reliable, but oh-so-environmentally-more-friendly new ones..
Lots going on out there – but what does it all mean? Markets have plenty to consider from rates, inflation, micro, macro, geopolitics and climate – but the core objective remains: generating dull, boring predictable returns in difficult markets.
Orders are piling up at the Paris Airshow, but fractured supply chains, labour shortages and engine problems means new aircraft deliveries are delayed for years. That’s opportunity, but also hints at new dynamics in terms of how the aviation sector develops – the Age of Cheap Flight may be over.
Golf – you have to laugh. But there is serious upside to be made from global sports franchise values as leisure time, AI, and prosperous middle classes emerge around the globe. Saudi might be the proverbial bull in a China-shop with their wallet, but it’s a plan!
