🇨🇳 Fund Managers bet on China

Good Morning!

So, why are some investors hesitant to jump back into the US stock market? In this issue, we share an article with insights into hesitant buyers. Speaking of insights - analytics firm Kpler suggests Russia's energy revenues may not have been as affected by Western sanctions as initially thought.

In the news, Google's recent massive layoffs have employees seeking answers. And last but not least, Asia's richest man has plans to IPO at least five companies between 2026 and 2028, we'll give you the rundown on what that could mean for the market.

Markets

Investors Aren't Sure When to Dive Back Into US Stock Market (3 minute read)The recent pause in the stock market's strong start to 2023 raises the question of when it will be safe to start buying again. While markets are optimistic that the slowdown in inflation will allow the Federal Reserve to end interest rate hikes, these higher rates could also drive the economy into a recession and halt growth. Positioning for this financial uncertainty is difficult, and it's not clear whether the US economy will fall into a recession. Investors are finding it challenging to make decisions on US stocks due to these conflicting indicators.

Russian oil trade remains in ship-shape as the EU price cap has failed to stem Moscow's freight and insurance income (2 minute read)Analytics firm Kpler suggests that Russia's energy revenues may not have been as affected by Western sanctions as initially thought. This is because Russia earns more from its oil trade than just the Free on Board cost, by charging Asian buyers for additional services such as shipping and insurance. Early data indicated Russian oil was priced at $38 per barrel, but Moscow's actual income may be above $60 per barrel when earnings from these extra services are taken into account.

Google employees scramble for answers after layoffs hit long-tenured and recently promoted employees (4 minute read)Google employees are seeking explanations for the recent massive layoffs, where the company announced it would cut 12,000 employees, or 6% of the full-time workforce. The employees are questioning the criteria used for the layoffs, as some long-tenured and recently promoted staff were affected. The CEO and search boss have sent emails to employees acknowledging the situation and requesting that employees save their questions for a town hall meeting next week.

Japan was the future but it's stuck in the past (5 minute read)In Japan, the value of houses depreciates rapidly after purchase, similar to the way cars depreciate. This is due in part to the long mortgage terms, lasting up to 40 years, by the end of which the house is worth almost nothing. Japan's economy has been stagnant for decades, with a resistance to change and attachment to the past contributing to its decline. As a result, Japan's population is both aging and shrinking, In the late 1980s, Japanese people were richer than Americans. Now they earn less than Britons.

Investing

Activist investor Elliott sets its sights on Salesforce (2 minute read)Elliott Management Corp, a prominent activist investor, has made a multi-billion dollar investment in cloud-based software firm Salesforce Inc, according to sources. The company's goals for this investment are not yet known. Jesse Cohn, a managing partner at Elliott, stated that he looks forward to working with Salesforce to create value for the company and that he has respect for the company and its co-CEO, Marc Benioff.

Fund Managers Are Betting On China Stocks And Commodities As The Country Reopens (30 minute read)This year, according to the Chinese lunar calendar, marks the year of the Water Rabbit, which is expected to bring a calmer 2023 compared to last year. Global fund managers are betting that China region stocks and commodities will have a strong year as the country gradually reopens after three years of lockdown. A recent survey shows that 91% of money managers believe China will fully reopen in 2023, with growth expectations at a 17-year high.

With yields on cash climbing, advisors struggle to keep some clients in stocks (4 minute read)Investors are considering increasing their allocation to cash in light of the uncertain economic climate, which has resulted in the worst year for balanced portfolios since 2008 and the worst year ever for bonds. Despite optimistic outlooks for 2023, citing slowing inflation and likely just one more interest rate hike, some investors are opting for cash as a safer alternative to risk assets, due to the economic uncertainty and money market yields reaching 4% at some online banks. The talk of a recession has also made investors more cautious and focused on shorter-term goals rather than long-term investments.

Asia’s richest man plans on IPOs for at least five companies (3 minute read)Gautam Adani, Asia's richest man, plans to list shares of at least five companies in the public market between 2026 and 2028. This move aims to improve the debt ratios and broaden the investor base of the conglomerate, which ranges from ports to power. The companies, such as the airport operator, are consumer platforms that service nearly 300 million customers and need to operate independently and manage their own capital requirements for growth.

Money

My life philosophy: 52 lessons from 52 years (15 minute read)Here are 52 principles that J.D over at Get Rich Slowly has found to be true during his 52 years on this planet.

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