Equity

While there is a shortage, demand for semiconductor technology increases in the light of a global 5G rollout, interconnectivity, and smarter consumer technology. Major Australian issuer ETF Securities now releases an ETF, the ETFS Semiconductor ETF. This fund is the first Australian passive investment product in that space.

The year 2020 was a fantastic year for stock trading in China, with the total market cap of the country’s stock markets reaching an all-time.

For some time now, we have been highlighting the wide valuation gap between the ‘value’ and ‘growth/quality’ ends of the market. Earlier in 2020, we suggested that the drivers of this extreme dispersion might be coming to an end and the 2020s could be the decade of the ‘cheap asset’.

As investors adjust for a potential style rotation, we urge them not to abandon their portfolios’ “quality compounders” and “transition winners.” Following the shock of the coronavirus crisis, there is a lot of talk of “early-cycle” economic dynamics: higher GDP growth, inflation and interest rates, and revived animal spirits.

The parabolic rise of this stock, reportedly driven by retail speculation, short-covering and options hedging, has reverberated across a number of other stocks and sectors.