Hedge Clippings | Friday, 03 December 2021
As we crawl towards Christmas, Hedge Clippings wonders if we're the only ones wishing the days would go a little faster. After all, it has been a funny kind of a year - although we use "funny" in the odd rather than the amusing meaning of the word. It has actually been a grind thanks to not only COVID itself, but also to all the ramifications that COVID added to daily life, such that for the most part "checking in" and mask wearing became the norm.
And it is not only daily life that seems to have been grinding along - the S&P/ASX200 seems to have found the going tough as well, having started the year at 6,757 it rose by 871 points or almost 13% by the beginning of August, only for the index to have lost almost half of that rise as it grinds towards 2022.
November was dreary with the ASX200 losing close to 1%, making it the third negative month in a row, taking the market's YTD increase to just over 10%. Add in dividends and the numbers become a little more respectable YTD (+14.10%) and whilst early days for November fund returns, actively managed equity funds have broadly, and in some cases significantly outperformed the market, with numerous examples of +40% YTD, particularly in the small and medium cap sector.
While more difficult to accurately measure, Australia's residential property market also seems to have a softer tone to it, as either the weather, the time of year, an increase in supply, or the threat of increased interest rates take effect.
Or maybe, like Hedge Clippings, everything is slowing - or grinding - down as we head towards Christmas. And just when the "double jabbed" vaccination rate inches towards - or over 90% - along comes a new variant to dampen spirits.
But it's not all - doom and gloom. Crypto as we've mentioned for the past few weeks, has been buoyant, even though Charlie Munger, the 97 year old vice chairman of Warren Buffett's Berkshire Hathaway considers it crazy.
And on another positive note, there's great news with the experts predicting that the 2021 Australian wine vintage will be a "unicorn" with a record crop of 2.03 million tonnes (+31% over 2020) after a season charaterised by near-perfect growing and ripening conditions across most states and regions.
At least there's something to keep Hedge Clippings' spirits up!
News & Insights
Manager Insights Interview | video by Cyan Investment Management
Fixed Income Dilemma | article by Laureola Advisors
4D podcast - the role of infrastructure in reaching net zero | article by 4D Infrastructure
Green hydrogen is central to plans to achieve net zero | article by Magellan Asset Management
Global infrastructure and global real estate set to shine | article by 4D Infrastructure and Quay Global Investors