After updating friends and family (and investors too) regarding performance and views regarding the Corona Virus at the end of February, we have been fielding a consistent stream of emails and phone calls regarding market volatility. We thought it would be prudent to put our thoughts down on metaphorical paper and return to publishing on our website during these very unique times.
2019 will be a transitional year. Underlying fundamentals will continue to drive global growth, albeit at a slower pace, with valuations reflecting this adjustment in reality. We do not predict a recession, but a return to sanity as growth comes at a cost as we depart from the historic decade of nil level interest rates. Markets will become increasingly volatile in the mid term as it adjusts to the new equilibriums. There are several points we want to draw attention to in the coming year that will contribute to market movement:
Softbank’s CEO Masayoshi Son is hopeful for a revitalization of the T-Mobile – Sprint merger following a tentative agreement with T-Mobile’s
Disney has begun to move towards its own separate streaming service by announcing the formal split with its content and Netflix
Toshiba continues to struggle in the sale of its microchip business to shore up its financials. After failing to reach a
China trade data for June was better than expected indicating stronger than expected global demand for Chinese goods and domestic consumption