Weekly Wrap

Weekly Wrap by Pythagoras Investing: 21 June 2020

Financial markets are paranoid about an acceleration in new coronavirus cases, driven by the concern about a larger and longer global recession than expected.  This concern was sparked by outbreaks in Beijing, Tokyo and the continuation of problems in US. Therefore, the market recovery is based on a reduction in social distancing practices but not…

Weekly Wrap by Pythagoras Investing: 14 June 2020

Oil had its first weekly decline in over a month, dragged down by the broader selloff. OPEC confirmed a continuation of supply cuts with “overproducing nations” forced to pull back production into the future.  This will stop the downward pressure on price which existed 6 weeks ago. At the same time, we have the start…

Weekly wrap from Pythagoras Investing: China bares its teeth

The Chinese ambassador Cheng Jingye said that the Australian “pursuit of a global COVID-19 review could spark a Chinese consumer boycott of significant Australian services and products”. This opens a range of questions about Chinas wolf diplomacy and why aggression is being directed to Australia as well as what we should do about it. Will our politicians change course for our prosperity or remain opposed to economics and trade? What are the market impacts? Oh, and who was Thucydides? Who wins in the iron ore sector?