Weekly Thoughts

Although the market currently doesn’t seem too bothered by what’s going on, it seems that the recent headlines from frontier AI labs are shifting from technical triumphs to damage control. When OpenAI…

With US earnings season out of the way, there are a number of AI-related issues specific to hyperscalers which are the engine of data centre spending that keep us awake at night.…

Why we retain key AI names in our short callsWe continue to advise being very cautiously positioned with our long picks mainly focused on some promising laggards left behind from the AI…

Cause for caution persistsIt has been a difficult few months to navigate through these choppy markets in Japan, but in the end, technology and AI names proved to be a safe refuge…

In our last open publication in early October, we warned that for the near term, much good news on the earnings front had been factored into technology valuations and risks looked skewed…

Will the coming stronger earnings season really matter?From circular investments among AI giants which have raised grave doubts about the sustainability of this massive investment cycle, to continued US government shutdown that…

China’s rerating continues, pressuring global funds to raise weightingsAs we have noted we have little doubt that the speed of China’s stock rerating has sent tremors through halls of global asset allocators.…

Not long after the yen carry trade unwind, comes another macro-driven shock as Chinese government’s sudden change in urgency in reflating its economy, practically pledging that they will do everything it takes…

Stocks bounce on global risk-on mode while BOJ turns more dovishDollar/yen rate rebounded from its 140 support line last week despite the Fed’s 50bps rate cut which we thought was prudent given…

Japan stocks performance likely to continue to disappoint in the near termWith dollar/yen rate continuing to head lower as BOJ has finally begun correcting its big policy mistakes of the past two…