The net-zero transition requires the rapid development at scale of new technologies, energy-efficient infrastructure, and carbon capture and storage. A carbon price, together with the elimination of fossil-fuel subsidies, would give investors powerful incentives to finance these and other imperatives. The quest for carbon neutrality has begun in earnest. More than 70 … [Read more...] about Beyond ESG: The Carbon Price Solution
2022 has been a very tough year for investors in the 60-40 portfolio in Europe and the US. Equities have suffered double digit declines and government bonds have endured their worst drawdown in decades. Hedge funds have been put forward as part of the solution as investors increasingly look for alternatives, particularly to fixed income. However, performance in 2022 has … [Read more...] about Why Global Macro may be part of the solution as investors reassess the 60-40 portfolio
High oil prices are still the cure for high oil prices. In October 2021, West Texas Intermediate (WTI) crude oil advanced to more than USD 80 per barrel—a level last seen in 2014—reflecting the mismatch between a sharp, year-over-year recovery in global energy demand as economies reopen and the time needed for the industry to ramp up output to pre-pandemic levels. The upsurge … [Read more...] about Higher Oil Prices Unlikely to Prove Sustainable
The global commodities complex continued to receive strong investor support over the past month as the world economy entered unfamiliar territory. After more than a decade of worries about inadequate demand and spending power in the aftermath of the global financial crisis, signs of insufficient supply are now emerging in commodity markets and supply chains driven by a … [Read more...] about Shortages, resurgent demand and rising inflation expectations lift commodities
Prices for all sorts of commodities are on the rise, potentially prompting investors to reappraise their view of commodity-related stocks. A number of different factors are coming together to support rising commodity prices. Such price rises could have a profound effect on the type of companies equity investors want to own. After years of being out of favour, suddenly … [Read more...] about Will rising commodity prices prompt a shift for equity investors?