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10k Words Equitable Investors May 2026 (2-minute read) The "Magnficient 7" continue to lead the charge with investors exhibiting a strong appetite for risk. But global oil inventories are tracking low and so is consumer sentiment in Australia and the US. And so is the free cash flow of those large tech companies as tech capex approaches 100% of US GDP. The game of pivoting to the hot space has fired up with a shoe maker and a range of others associating themselves with "AI" and receiving a share price bump. We map the interconnectedness of global equity markets - and look at the long-term shift away from asset bases in Australian valuations. Finally, CEOs are getting older! Magnificent 7 v the world
Source: Koyfin US risk appetite and equity momentum - hitting levels last seen in 2020
Source: Goldman Sachs Investment Research Global oil inventories
Source: JP Morgan Commodities Research US consumer sentiment v. equities
Source: Koyfin Australian consumer sentiment v equities
Source: Iress, Koyfin "Mega Tech" free cash flow diminished - "capital light" model gone
Source: BCA Research Tech capex approaching 100% of US GDP
Source: Panmure Liberum AI pivot or pump?
Source: Equitable Investors, Koyfin Global equity interconnectedness network (simulted via piecewise Network VAR Spillover Coefficients)
Source: Grok, Equitable Investors Australian equity market's long-term trailing valuation multiples
Source: RBA Average age of CEOs over time (US data)
Source: FT Alphaville, "Aging at the Very Top" Funds operated by this manager: Equitable Investors Dragonfly Fund Disclaimer Past performance is not a reliable indicator of future performance. Fund returns are quoted net of all fees, expenses and accrued performance fees. Delivery of this report to a recipient should not be relied on as a representation that there has been no change since the preparation date in the affairs or financial condition of the Fund or the Trustee; or that the information contained in this report remains accurate or complete at any time after the preparation date. Equitable Investors Pty Ltd (EI) does not guarantee or make any representation or warranty as to the accuracy or completeness of the information in this report. To the extent permitted by law, EI disclaims all liability that may otherwise arise due to any information in this report being inaccurate or information being omitted. This report does not take into account the particular investment objectives, financial situation and needs of potential investors. Before making a decision to invest in the Fund the recipient should obtain professional advice. This report does not purport to contain all the information that the recipient may require to evaluate a possible investment in the Fund. The recipient should conduct their own independent analysis of the Fund and refer to the current Information Memorandum, which is available from EI. |
