Weekend Homework, 3 November

Paul Krake

Welcome to the latest edition of Weekend Homework, a summary of the most interesting articles, reports, podcasts and videos that we came across this week. They will include not only our proprietary work but also contributions from our Expert Series partners in their day jobs at some of the world’s leading think tanks, and other thought provoking work. These pieces made us reassess, challenged our conventional thinking or opened our eyes to a new idea or concept.

This week we look at the inevitability of the bursting of the cryptocurrency bubble, AI’s impact on the mining industry, Goldman’s Peter Oppenheimer discusses bear markets, how China spends its foreign aid and China internet. Something for everyone!


What to watch

This week, investor attention will be focused on earnings which ramp up in Japan and Asia. A large focus of ours is the Chinese internet space with the Global Thematic portfolio holding positions in the big three companies: Baidu, Alibaba and Tencent. These stocks are up 62%, 97% and 82% this year, respectively, so investors want to see strong execution and positive guidance to justify current valuations and continued performance. Cindy’s conversation - Watch

What to read

Cryptocurrencies and decentralized applications are at complete odds to the established order of nation states and the ways they regulate the financial system. My thought piece on why the cryptocurrency bubble will burst in 2018 - Read

An excellent synopsis of AI / autonomous developments in the mining sector and the impacts it has on productivity. - Read

The most thoughtful article I have read about crypto-currencies and the inspiration for my thought piece. Hardly a cheerleader, Adam Ludwin's article is a wonderful exploration on the true value of crypto-currencies. This is a must - Read

For a long time, China's foreign aid spending was best described in the words of Winston Churchill: "a riddle, wrapped in a mystery, inside an enigma." The country withholds information from the public because it is considered a state secret. A new report lifts the shroud of secrecy. – Much more interesting than it sounds!! - Read

What to listen to

Peter Oppenheimer, chief global equity strategist for Goldman Sachs Research, discusses why identifying the peak may be less important than recognizing a bear market once it starts, and what history can tell us about the types and tenures of these declines. - Listen


The View