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Hedge Clippings | Friday, 18 December 2020
As Hedge Clippings wraps up for the Christmas break, on reflection it is probably the understatement of all understatements to say it has been an extraordinary year.
Obviously COVID has not only dominated the headlines, but created a new way of thinking about life, and how we live it. However even pre-COVID the year got off to a rocky start, dominated by bushfires, whilst towards the end of the year we had the spectacle of the US election, and Donald Trump's refusal to concede defeat.
The bushfires have thankfully (for the moment at least) gone, only to be replaced 12 months later with flooding on the east coast of Australia. Equally, Trump seems to have gone (for the moment at least) to be replaced by what might be termed a more "normal" or at least "presidential" President. We will obviously have to wait and see how that pans out, but for the immediate future, and we suggest for the next 6 to 12 months at least, the focus will remain COVID.
It has, if nothing else, been an interesting year. Fittingly it is a Chinese proverb - more normally referred to as a curse - which best describes 2020: "May you live in interesting times".
(And just to remind us, the breakout on Sydney's northern beaches is a stark reminder not to become too complacent.)
There will be plenty of time over the coming months, years and even decades to reflect on 2020, but instead of looking back, let's look forward: All the anecdotal, statistical and financial/market evidence we can see points to (subject to the successful rollout of a vaccine) a burst of economic activity. Some may see it as a rebound, but in Australia at least there does seem to be a genuine improvement in household savings and consumer confidence.
On a national basis our relationship with China remains a problem, and one which is unlikely to disappear in a hurry. However, as we have discussed previously, diversifying one's customer base, either on a corporate or national basis, will not be a bad outcome in the longer term.
Globally there is obviously still a long way to go, with the immediate and short-term future highly dependent on the much anticipated rollout of successful vaccines. However, once in place one would assume the recovery, buoyed by unprecedented global government stimulus, will also be significant.
Closer to home, in fact right here at Hedge Clippings, we are about to unveil a fresh new look for our website www.fundmonitors.com, albeit with the same core content of "Trusted, Targeted Research", with information and analysis of over 550 managed funds. Friday afternoon, particularly the last one before Santa slurps and slides down the chimney, is NOT the time, nor place for a promo, but we hope you will appreciate the changes we're about to make, and either way we will appreciate your feedback.
Which finally leaves me to thank all those - investors, advisors and fund managers, clients and suppliers - all of whom play a distinct and essential part in what we do. Importantly a special thanks to AFM's and OLIVIA123's hard-working and dedicated team who have made the year a success.
And on that note, have a great weekend, a happy holiday, and most importantly a safe and healthy 2020 to you and your loved ones. We'll be back in mid January, refreshed and no doubt raring to go back on the diet we started in February this year!
News & Insights
Equities: I can't live with you, I can't live without you by Darling Macro
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