Cost of missing the market boom is skyrocketing
Skepticism in global equity markets is getting expensive.
From Japan to Brazil and the US as well as places like Greece and Ukraine, an epic year in equities is defying naysayers and rewarding anyone who staked a claim on corporate ownership.
Records are falling, with about a quarter of national equity benchmarks at or within 2% of an all-time high.
“You’ve heard people being bearish for eight years. They were wrong,” said Jeffrey Saut, chief investment strategist at Raymond James Financial Inc., which oversees $500 billion. “The proof is in the returns.”
To put this year’s gains in perspective, the value of global equities is three-and-a-half times that at the financial crisis bottom in March 2009.
Aided by an 8% drop in US currency, the dollar-denominated capitalization of worldwide shares appreciated in 2017 by an amount—$20 trillion—that is comparable to the total value of all equities nine years ago.
And yet skeptics still abound, pointing to stretched valuations or policy uncertainty from Washington to Brussels. Those concerns are nothing new, but heeding to them is proving a costly mistake. Bloomberg
Oil at two-week high amid optimism on re-balancing
Oil climbed to the highest level in two weeks as dwindling US crude stockpiles and near-record Chinese imports signalled the worldwide glut is eroding. Futures advanced 1.7% in New York on Friday, posting the biggest weekly gain in a month.
In China, crude imports in September jumped to the second highest on record. US oil inventories slid for a third week and the chief of the International Energy Agency predicted worldwide supply will soon be in sync with demand, provided Opec maintains output cuts.
Oil has risen five of the past six weeks on signs that self-imposed supply limits implemented by Opec and allied producers such as Russia are gradually draining a surfeit that has weighed on prices for more than three years. Opec was said to estimate that its efforts to clear oversupply will be successful by September 2018. Bloomberg
Indian firms top solar funding activity
Indian firms topped the global list of funding deals—venture capital, public market and debt financing—in the solar sector in the September quarter.
According to Mercom Capital Group, Llc, a communications and consulting firm, the top venture capital deal in the past quarter globally was by CleanMax Solar, an Indian rooftop solar developer, which raised $100 million. Greenko Energy Holdings, which raised a total of $1 billion in two separate debt deals, and ACME Cleantech Solutions’ $108 million fund raising stood as top debt deals.
Similarly, the top project merger and acquisition deal was of IDFC Alternatives, which acquired a portfolio of seven Indian solar projects for an enterprise value of $300 million. Funding activity slowed in the US and China, the largest markets, according to Mercom. This, to some extent may be helping Indian deals stand out.