We are in to the home stretch for CY2022, the December quarter, and can paint a fairly dire picture of how investment and capital markets have faired. Global M&A activity is down 33%, while equity capital raised is down 65% according to dealogic data. Acquisitions of VC-backed businesses have dived in number, as Pitchbook charts. Gavekal shows the drawdown in dollars across equity and debt markets in 2022 dwarfs the GFC. And yet despite the declines, fund managers' equity allocations have been slashed according to both Bank of America and Goldman Sachs. In Australia, economists' inflation expectations have inched higher according to Bloomberg, while consumer sentiment has plunged based on the ANZ-Roy Morgan survey. Meanwhile, HFI Research chart's the decline in hydrocarbons in storage in the US in 2022 tracking well below prior years. EIA's own chart tells a similar story relative to the 5-year range.
Global M&A in CY2022 year-to-date relative to same period in 2021
Source: dealogic, WSJ
Global Equity Capital Markets activity in CY2022 year-to-date relative to same period in 2021
Source: dealogic, WSJ
Acquisitions in the US of VC-backed businesses
Drawdown in total market capitalisation of US equity & fixed income
Source: Gavekal Research, Bloomberg, Macrobond
Hedge funds and muutal funds slashed equity exposure
Source: Goldman Sachs, ICI (via zerohedge)
BofA Fund Manager Survey shows allocation to equities at all-time low
Source: Bank of America Fund Manager Survey
Survey of Australian economists' inflation expectations
ANZ Consumer Sentiment
US Big 4 Storage ( Crude with Strategic Petroleum Reserve + Gasoline + Distillate + Jet Fuel)
US crude oil stocks
Source: US Energy Information Administration
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