US markets continued their upward trajectory, making new highs again. Seemingly great news. However, it is no secret there is a raging bull elephant in musth in the room named US Debt. The upside is we know about it. The downside is what it may trigger. Markets can stay irrational far longer than you can remain solvent.
The SPX 500 and Nasdaq 100 gained 3.5% and 6% respectively again led by Nvidia. This leading AI business has strode to a nonchalant 158% return this year.
European markets were lower with the DAX and FTSE losing in the order of around (1.4%) each.
South African front?
As election outcomes edged towards announcement, I became increasingly suspect that I was in the presence of a boss who was preparing for the worst. Delirious ideas to flee his homestead and set up shop on an island were being spawned off daily.
Luckily a business friendly announcement from the elections a Government of National Unity (GNU) soothed markets and convinced my employer that suntanning and trading in the Bahamas will have to wait a touch longer.
SA Top 40 rose 3.6% when the result of the GNU was revealed. The Bond market and the ZAR(Rand) both appreciated strongly as a consequence of a more business friendly government became evident.
The small to midcap space was volatile and the main upward move was in the SA Inc. bigger caps especially the banks, retailers and property REITS with the ZAR hedges being the funders (i.e. selling of the rand hedges to fund the buying of the banks etc)
All in all, a month that offered a seriously loaded buffet of information and outcomes to chew on. No doubt we will still be chewing as the month of July commences. Hopefully, dessert tastes good too.
Signal Offense Defense Celebrates Returns of 15.34%
The Offense Defense, our Fund of Hedge Funds has now been live for 1 year. During the period August 2023