Skip to main content

1. There’s a long road ahead…

Leaders of the group of seven (Britain, Canada, France, Germany, Italy, Japan, and the US) met this week in the Bavarian Alps. Whilst they announced that a ‘climate club’ will be launched by the end of the year to speed up efforts to tackle global warming, they also announced they will allow public investment in new international fossil fuel projects. The group said that investment in LNG was a “necessary response to the current crisis” and that “in these exceptional circumstances, publicly-supported investment in the gas sector can be appropriate as a temporary response.” Some countries, including Germany, have already said they will restart mothballed coal stations in an attempt to keep the lights on this winter.


Source: BofA Global Research


2. Just keep buying, just keep buying… 

Global economies might be weakening, but they don’t yet seem weak. At least on the below measures:

  • US retail investors have purchased over $24 billion worth of US stocks in June, in line with the average of the last 2 years
  • The US consumer balance sheet is very healthy, with $3 trillion of excess cash
  • Retail sales in Australia rose +0.9% m/m in May, after the market expected +0.4% m/m. All major categories of Aussie retail sales, except clothing & footwear, rose in May.
  • Las Vegas strip occupancy is getting very close to pre-pandemic levels

Source: VandaTrack


Source: Jefferies


Source: The Daily Shot


3. Have they seen the light ahead?…

Wall Street analysts are taking bullish views on S&P 500 companies to new extremes. On a scale of 1 to 5, in which 5 is a buy and 1 is a sell, companies in the S&P 500 Index now have an average consensus rating of 4, according to Bloomberg. That’s the highest reading since 2002. Typically, we see that when the stock market falls, analysts’ projections on the firms they cover decline with it. The opposite is happening now, with the bulk of the jump in analysts’ consensus projections happening after the worst days of this year’s bear-market rout, according to Jefferies.​​​​

Source: Bloomberg


This article is prepared by Firetrail Investments Pty Limited (‘Firetrail’) (ABN 98 622 377 913, AFSL 516821) as the investment manager of the Firetrail Australian High Conviction Fund (ARSN 624 136 045), the Firetrail Absolute Return Fund (ARSN 624 135 879), the Firetrail Australian Small Companies Fund (ARSN 638 792 113) and the Firetrail S3 Global Opportunities Fund (ARSN 653 717 625) (‘the Funds’). Pinnacle Fund Services Limited ('PFSL') (ABN 29 082 494 362, AFSL 238371) is the product issuer of the Fund. PFSL is not licensed to provide financial product advice. PFSL is a wholly-owned subsidiary of the Pinnacle Investment Management Group Limited (‘Pinnacle’) (ABN 22 100 325 184). The Product Disclosure Statement (‘PDS’) and Target Market Determination (‘TMD’) of the relevant Fund are available via the links below. Any potential investor should consider the PDS and TMD before deciding whether to acquire, or continue to hold units in, the Fund.

Links to the Product Disclosure Statement: WHT3810AU, WHT5134AU, WHT3093AU, WHT7794AU

Links to the Target Market Determination: WHT3810AU, WHT5134AU, WHT3093AU, WHT7794AU

For historic TMD’s please contact Pinnacle client service Phone 1300 010 311 or Email

This communication is for general information only. It is not intended as a securities recommendation or statement of opinion intended to influence a person or persons in making a decision in relation to investment. It has been prepared without taking account of any person’s objectives, financial situation or needs. Any persons relying on this information should obtain professional advice before doing so. Past performance is for illustrative purposes only and is not indicative of future performance.

Whilst Firetrail, PFSL and Pinnacle believe the information contained in this communication is reliable, no warranty is given as to its accuracy, reliability or completeness and persons relying on this information do so at their own risk. Subject to any liability which cannot be excluded under the relevant laws, Firetrail, PFSL and Pinnacle disclaim all liability to any person relying on the information contained in this communication in respect of any loss or damage (including consequential loss or damage), however caused, which may be suffered or arise directly or indirectly in respect of such information. This disclaimer extends to any entity that may distribute this communication.

Any opinions and forecasts reflect the judgment and assumptions of Firetrail and its representatives on the basis of information available as at the date of publication and may later change without notice. Any projections contained in this presentation are estimates only and may not be realised in the future.

Unauthorised use, copying, distribution, replication, posting, transmitting, publication, display, or reproduction in whole or in part of the information contained in this communication is prohibited without obtaining prior written permission from Firetrail. Pinnacle and its associates may have interests in financial products and may receive fees from companies referred to during this communication.

This may contain the trade names or trademarks of various third parties, and if so, any such use is solely for illustrative purposes only. All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with, endorsement by, or association of any kind between them and Firetrail.