Happy New Year to you, I hope that 2024 will be a great year for you and your families.
We wrote back in October that “It was all about the rates”. The last two years have been dominated by the hiking cycle that took interest rates across the developed world from all time lows to something approaching normality.
However, in Q4, we saw signs that the great central bank pivot might be upon us. Central bankers lined up to tell us that perhaps we had reached the end of the hiking cycle. Markets were euphoric, sending bond yields significantly lower and stocks, gold and crypto much higher.
In time they will understand that the reason for cutting rates from here is because of a deterioration in economic data, but maybe they simply don’t care.
After all, the net impact is likely to be more liquidity and more stimulus, something we have long talked about as being inevitable.
It is why we are focused on real assets: today we feature a commodity that is the backbone of our physical world and a company that is perfectly positioned to benefit.
With another year in the books, we are now firmly into the middle of this decade… and what an eventful decade it has been so far. The 2020s decade began with the chaos of Covid. Where the decade will end is less clear, but right now it seems unlikely that it will be a smooth…
