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25 Oct 2022 - 10k Words

By: Equitable Investors

10k Words 

Equitable Investors

October 2022

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

Source: PitchBook

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 

Source: Bloomberg

ANZ Consumer Sentiment

Source: ANZ-Roy Morgan

US Big 4 Storage ( Crude with Strategic Petroleum Reserve + Gasoline + Distillate + Jet Fuel) 

Source: HFI Research

US crude oil stocks

Source: US Energy Information Administration

October Edition

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Equitable Investors Dragonfly Fund


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