Our March newsletter provides insights on relevant timely topics we hope you find value reading. We begin with commentary from Guinness Asset Management discussing the economic and market implications of the Coronavirus and how to prepare for the volatility expected. We also share the ARK Disrupt Newsletter covering Automation, Podcasts, Neural Nets & Fintech. Finally, we share the most recent monthly commentary from Pacific Asset Management.
Putting the Coronavirus in Perspective
Stock markets around the world are adjusting from believing that “the coronavirus is largely a Chinese problem” to the fear that “it will be everywhere”.
The immediate economic impact of the coronavirus is likely to be material, given the restrictions on the movement of people and goods in a highly interconnected world. Global GDP growth may be negative in the first quarter of 2020. However, we expect continued significant fiscal responses from governments around the world to boost growth. This is likely to mark the start of a growing trend of government spending from both developed and emerging countries.
For equities to begin rallying anew, however, investors will need to see evidence that the rate of growth of new coronavirus cases outside of China is being quickly contained.
The full commentary from Guinness Asset Management can be accessed by clicking the link below:
Automation, Podcasts, Neural Nets & Fintech
While automation typically causes debates about the potential loss of jobs, ARK’s research suggests that it could transform “unpaid” labor into “paid” labor.
During the past year, Spotify has tripled the number of podcasts on its platform, now offering more than 700,000 titles. That said, it still is working on monetizing its burgeoning library.
The neural nets arms race has escalated with Microsoft’s release of Turing Natural Language Generation (T-NLG), a transformer-based model with 17 billion parameters—ten times larger than OpenAI’s GPT-2 from a year ago. More parameters allow neural nets to learn, remember, and perform complex tasks.
The full newsletter can be accessed by clicking the link below:
Markets fell sharply in the last week of February as investors were spooked by the marked rise in the number of coronavirus cases outside China
All equity markets fell in February, but emerging markets were the most resilient in February, being somewhat further through the economic impact of the coronavirus.
Please click the link below to read the latest monthly commentary: