14 June 2022
by Tui Eruera, Founder and CEO of Jaaims
What a time we are living in! Turbocharged supply side inflation, rapid rates increases, local energy crisis coupled with constrained supply chains and labour shortages. The perfect storm is upon us and it’s time to settle into the new norm!
If you are a Jaaims follower, you would have seen that Jaaims’ activity this year has been relatively low compared to previous years. Capital Preservation and risk management has been the Jaaims’ preferred strategy with an average capital deployment of just 15% this year to date.
Currently Jaaims has two (2) long ratings in play, focused in the US energy sector. They are Devon Energy Corporation (DVN.NYSE) and Diamondback Energy (FANG.NASDAQ). Sentiment remains strongly to the downside so I would expect these positions to close shortly resulting in Jaaims being completely out of the market.
As I write this, the ASX is down 5.01%, with a sea of red across the board. Asian markets look similar with the Hang Seng down 3.39% and the Nikkei down 1.51%. This negative sentiment is expected to carry through across all markets today and the remainder of the week as the market comes to grip with the US inflation print of 8.6% and what the Fed will do with US interest rates. The consensus is the increase will be between 0.50% to 1%, with most analysts tipping a 0.75%.
As equity investors, corrections represent buying opportunities and now is the time to look at our long-term investing strategies. As I have written about in the past, I believe there are opportunities in agriculture and sand, which are long term trades. These trades you won’t find in Jaaims, as Jaaims has a short to medium term view so we won’t be expecting any activity soon, however it is important to remove ourselves from the noise, focus on what we can control and allow Jaaims to manage the short to medium term of our portfolio so we can look at the longer term opportunities.
Believe it or not… it is now time to relax, opportunities await and this too; shall pass.
Any advice provided is general in nature and does not take into account the viewer’s specific needs and circumstances. You should consider your own financial position, objectives and requirements to determine the type of advice and products to best suit your needs. Jaaims Australia is an Authorised Representative of Jaaims Technologies, AFSL 519985.