What’s Hot
- China is King again…again, see here and here. This shouldn’t shock anyone who has followed our coverage…
- … zero-Covid is over, Xi is striking a kinder tone with the global community, and the housing market has stabilised. China’s citizens have also accumulated $2.6T in new savings last year, an all-time record which is increasingly likely to be spent domestically.
- Our top performer this month, Tech has finally bounced after being the second-worst performer last month. This is unsurprising after heavy selling saw it crumble almost 40% peak to trough since late 2021…
- It bounced more than double the current bounce mid last year, before losing it rapidly. Buyers beware
- Another familiar face from November and last year is Latin America, where higher interest rates are benefitting their large financial services stock market sectors.
What’s Not
- India has suffered another difficult month, after a brilliant couple of years (and decades in fact). This followed the release of the Hindenburg report, which cratered Adani Enterprises stock price, down 60%, one of the biggest companies in India and home to the world’s third richest man.
- Healthcare has also struggled this month. After shrugging off the market meltdown of the last year or two, rising interest rates have exposed the piles of poor-quality debt. 1/5 of distressed bonds are now issued by the healthcare sector.
- The rest of the “Not” list is made up of sectors with positive returns, with short-term money markets and US treasuries treading water as cash equivalents, and UK property holding up after an interest rate onslaught which has weighed heavily.
What’s Hot
Name
|
Last Month's
Performance %
|
IA Technology and Technology Innovations
|
9.2
|
IA China/Greater China
|
8.16
|
IA Latin America
|
6.82
|
IA Asia Pacific Excluding Japan
|
6.17
|
IA Financials and Financial Innovation
|
6.14
|
What’s Not
Name
|
Last Month's
Performance %
|
IA India/Indian Subcontinent
|
-3.54
|
IA Healthcare
|
-0.79
|
IA Short Term Money Market
|
0.24
|
IA UK Direct Property
|
0.24
|
IA USD Government Bond
|
0.24
|
Performance 02/01/2023 – 31/01/2023
All performance figures quoted as total return in GBP