AI has become the markets new, new thang/bubble as investors pile into the new, new narrative forgetting the fundamental rules of investment are about generating dull, boring, predictable returns which look frothy in hot stocks, negative yields in bonds, thus positive returns from real assets stand out!
Aviation is booming. Airlines are buying planes. Passengers want to fly. There are just a few little problems... There aren’t enough planes. That makes Aircraft as an Alternative Asset a great investment opportunity.
Don’t assume inflation is licked, don’t assume interest rates will stop rising, don’t assume there aren’t further bank failures to come, don’t assume politics and society will cope well, but don’t assume it’s all end of the world. In periods of financial uncertainty there is opportunity…
Bitcoin’s recent gains are about as relevant as Liz Truss. But banks, earnings, inflation, rates and investment remain critical. Now shadow banking investment is under threat – which isn’t going to help.
The current crisis (?) is another step in banking’s progress towards an evolutionary dead end. The future doesn’t need banks. It will need smart risk takers, and new ways to originate and distribute risk.. an opportunity for banks clever enough to evolve!
Swift Action by the Fed and around the globe has averted a major tech catastrophe, but the Silicon Valley Bank debacle highlights failure and further crisis to come. Hard Hats Stay On!
Markets are in a fluster over US banks, but that’s not the real problem. There is a looming crisis about to roil markets stemming from inflated valuations in the Private Asset sector. This is going to get really messy. Hard Hats on!
Markets wobbled yesterday on the current litany of fear: interest rates, inflation and Ukraine. The bigger issues are just how unsustainable current equity valuations remain, and where to invest in range-bound markets.
Inflation across the West looks to be more entrenched than markets believed – Higher for Longer. Maybe it’s time to accept it’s going to take time to fix, and look elsewhere for returns.
Microsoft taking a controlling stake in ChatGPT highlights how the world is going to change as AI becomes embedded across news, data and analysis. Compare my take on the market with the AI. As GPT rolls out it will trigger a new Tech revolution, but how will it be controlled and what are the dangers?