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

August 23, 2024August 30th, 2024

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1. Back to basics

Money in, Money out, Population growth – these three data points provide a good summary of China right now as headwinds to growth intensify.

Source: Jefferies, SAFE (August 2024)

Source: Jefferies, SAFE (August 2024)

Source: CNBS, Haver Analytics, Apollo Chief Economist. Note: Natural population growth shown. Natural population growth = (birth rate – death rate) * total population. (August 2024)

2. Data, data everywhere

The US increased power capacity in the first half of 2024 by the most in more than two decades, largely to meet the growing electricity demand driven by data centres and artificial intelligence. Electricity generation rose by 20.2 gigawatts between January and June, the Energy Information Agency said, the most since 2003. The additional capacity was 21% higher than the same period in 2023 and is expected to more than double to 42.6 gigawatts by the end of the year.

The US has over 5,380 data centres, which is more data centres than in all other major countries combined! Australia has just over 300.

Source: Statista, Cloudscene, Apollo Chief Economist (Data as of March 2024)

3. Election exhaustion

If it feels like the US election has been going on for a while, you’re right! Companies started discussing the election much earlier in this cycle than they have in the past, and we’ve still got over 2 months to go.

Source: GS Dataworks, Goldman Sachs Global Investment Research (August 2024)

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.

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