When good is bad
With the US dollar the globe’s reserve currency, as US treasury yields rise, the reference rate for borrowing across the planet also goes up. There is obviously a clear link between this “risk-free” rate and the rate at which “risky” entities borrow money, be they companies or other governments (typically emerging markets).
It’s not just bonds that have duration!
As I sit in the office at home, I casually glance at the Nasdaq performance over the last few years and the performance has been startling! In the last five years alone the Nasdaq has more than trebled – significantly outperforming most other indices. The rise has been meteoric and according to some market commentators valuations appear stretched.
An underground revolution: metals, mining and ESG momentum
Mining and ESG in the same sentence? A contradiction, surely! Indeed, S&P rank the metals and mining sector as being the second-largest contributor to greenhouse gas emissions, waste, and pollution, narrowly behind the oil & gas sector.
