Three things that got the team talking this week - Firetrail Investments

Weekly insights from the Trail

Three things that got the team talking this week

December 16, 2022January 13th, 2023

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1. The IPO show rolls on…

Last year it was one of the busiest years on record for corporate activity in Australia. This year it was China’s turn. Chinese companies raised a record $92 billion in IPO proceeds this year, accounting for 46% of the global total. And with the end of Covid Zero in sight, 2023 could be another big year. The pipeline already looks solid, with over 376 companies announcing IPO plans over the past six months that are now pending, meaning they could go public next year.

Source: Bloomberg

2. The new frontier…

The World Health Organisation (WHO) declared Covid a global pandemic 1,010 days ago. Can we declare it now dead?

Travel spend is back
The share of working age Australians in a job is at all-time highs, and unemployment is at the lowest levels in 50 years
Retail sales are right back on the trendline

What will 2023 bring?…

Source: Macquarie

3. Who dares wins…

For the first time in a long time, the sell side are predicting the S&P 500 to end 2023 down. But fund managers are betting equities rise 10% in 2023.

Source: Bloomberg

Chart of the year

In 2022 the Federal Reserve raised interest rates the most in a single year since the 1980s. If only we used this chart to predict the extreme rate hike – which shows the correlation between Fed Chair heights and interest rates. Jay Powell towers over Janet Yellen, who is just 5 foot 3 inches tall.

Rates currently sit at 4.25%-4.5% in the US, the highest level since 2007. And predictions are for it to get to 5.1% in 2023.

Source: Barrenjoey

Disclaimer

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 service@pinnacleinvestment.com

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