Long Term Copper Story

Download PDF: The year 2020 has seen major economies in the world affirming their commitment to limiting the increase of global average temperature to 2 degree Celsius above pre-industrial level, with a more ambitious target of 1.5 degree, as had been agreed under Paris Climate Agreement. EU and Japan would strive for a net zeroContinue reading “Long Term Copper Story”

End of Year Chart Update

Download PDF: With the year almost ending and asset prices have rebounded strongly, we are becoming increasingly cautious on adding position to our core portfolio holdings and prefer to stay on the sideline until the next correction, at the risk of missing further upside moves. Technical and valuation point to an overbought and overvalued U.S.Continue reading “End of Year Chart Update”

Global Themes 2021-2030

Download PDF: Last month, we outlined our outlook for the year ahead, where Chinese growth will continue to rebound strongly and global liquidity remain plenty. This month, we are taking six themes for the coming decade, with the focus on inflation, savings-investment dynamic, and transition to renewable energy. I hope you enjoy the read. ThemeContinue reading “Global Themes 2021-2030”

South Africa: The Good, The Bad, And The Ugly

Download PDF: South African government released its medium-term budget plan late last October, highlighting the steps it will take to bring the country’s spiraling public debt under control. South African assets had been bombed out this year, which offers attractive investment opportunities from a tactical point of view. However, structural outlook remains bleak and theContinue reading “South Africa: The Good, The Bad, And The Ugly”

South Africa: Is The Worst Yet To Come?

Download PDF: South African government fiscal situation turned from bad to worse this year amid a shortfall in tax revenue and increase in spending to support growth (Chart 1). The government’s revision to its budget in June mainly reflects a shifting of its spending, i.e. delaying projects to 2021/2022 or beyond while prioritizing funds forContinue reading “South Africa: Is The Worst Yet To Come?”

Reassessing the Investment Thesis on EM Countries: Russia, Colombia, Chile, South Africa, and Indonesia

Download PDF: Russia -Neutral View + The tendency for oil prices is to move higher as global lockdown restrictions are lifted and a nation-wide lockdown is averted amid the virus’ second wave infection. Half of Russian equity index is dominated by energy companies and the economy is also very dependent on oil prices, making RussianContinue reading “Reassessing the Investment Thesis on EM Countries: Russia, Colombia, Chile, South Africa, and Indonesia”

Where Are Precious Metals Headed?

Download PDF: The rally in gold and silver prices this year has been impressive, although both metals have corrected somewhat. With the prospect of further stimulus still being debated, it is useful to revisit the thesis behind our bullish call on precious metals and reassess our portfolio positioning. First, let us start with the tailwinds:Continue reading “Where Are Precious Metals Headed?”

The Bearish Case for Oil Price and Energy Stocks

Download PDF: The long-term demand growth of energy products remains intact, mainly arising from rising middle class in emerging market countries. Oil will remain a major source of energy in the coming decades, however, oil-based power source is increasingly replaced by gas and other renewable sources, including solar and wind technologies. EIA projects oil consumptionContinue reading “The Bearish Case for Oil Price and Energy Stocks”

Turkey: The CBRT Strikes Back and A New Hope?

Download PDF: The Central Bank of the Republic of Turkey finally capitulated to market pressure and raised its policy rates by 200 bps last week amid a weakening lira. This is a reversal of its aggressive easing policy since the 2018 crisis, when the central bank has been under government pressure to bring its policyContinue reading “Turkey: The CBRT Strikes Back and A New Hope?”

A Tale of Two Latam Countries: Brazil and Mexico

Download PDF: Brazilian manufacturing sector’s recovery has been surprisingly strong post-pandemic, outpacing other EM countries, despite the still poor health care situation and strict lockdown restriction nationally. However, the strong rebound has not been followed proportionately by the country’s asset prices, contrary to the development seen in Mexico (Chart 1). The country still records contractingContinue reading “A Tale of Two Latam Countries: Brazil and Mexico”