Author — Martin Young, CEO of Farringdon Asset Management

Global Macro Review

• S&P500 set several new records this week.

US Markets

• Tesla unveils its new Robo taxi and Optimus Robots which served drinks to audiences.
• Investors were impressed by the Optimus Robots initially but then found out they were not AI but rather human remote controlled.
• Tesla share price dropped 7%.
• Elom Musk’s Space X managed successful launch of star ship and managed to catch the returning booster (30 stories high) with chop stocks on the launch tower.
• Elon Musk predicts tesla will grow 10x in market cap soon.
• S&P sees significant increase in the number of sovereign debt defaults in the next decade primarily off the back of increased debt loads in foreign currency and higher interest rates.
• Bonds are likely to return to approximate returns of 3% in the longer term.

Chinese Markets

• The Chinese market rose sharply on Monday but retraced back later in the week.
• The CSI 300 ended Monday, up by 1.9% biggest gains in a week.
• Farringdon prediction of CSI 300 peaking at 4250 (range of 4000 to 4500) was relatively accurate.
• Structural, demographic and political risks and problems remain unchanged in China.
• Farringdon view on the Chinese market is that advisor should start selling off Chinese assets before the Chinese markets crashes back down again.
• There was no fiscal stimulus announced on Saturday despite market expectations.
• However, the finance ministry pledges greater support for the market.
• This sent the price of Iron ore higher after 6 months of falls.

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Farringdon Capital Ltd is incorporated in the Dubai International Financial Centre (DIFC) under number 4190, and regulated by the Dubai Financial Services Authority (DFSA).

The information contained in this document is for information only and should not be taken as a recommendation to buy or sell. Investors are reminded that past performance is no indication of future performance.