Prices receded on the back of the easing of tensions in the Gulf with WTI dipping just below $60 which represents a drop of 6% since the previous Friday when the U.S. drone strike killed General Solaimani. As trailed earlier in the week, despite there remaining tensions on the back of that, there is simply too much supply in the market for prices to really spike up-unless of course there is a re-escalation of hostilities and more serious long term disruption to oil supplies through the Gulf.
When the FANG acronym was created during the teenies, it referred to Facebook, Amazon, Netflix, Google. Then Apple was added and Salesforce was also included to make FANGS. Google parent Alphabet then muscled its way in to make FAANGS. And now as we embark on the twenties we have FAANGS + which is code for all the above plus Tesla, Twitter, Alibaba and Baidu. Which some wags have distilled into FAANGS + BADTWAT.
Let’s stop with the acronyms and ask the more pertinent question: Will this group of big tech have the same seismic effect on equity market valuations in the next decade as it did in the past one? In case you are wondering: the answer is that big tech represented an increased in value of USD 4.3 Trillion in the teenies….
That great symbol of the USA, the American seal may just come up in your next pub quiz. The 13 red and white vertical stripes on the shield represent the 13 original colonies. What about the colours? Blue stands for vigilance, red for hardiness and valour and white means purity and innocence. If it doesn’t come up in the quiz, you can always use this to impress the saloon bar at large with your encyclopaedic knowledge- obviously in February after Dry January!
There are 12 Chinese signs of the Zodiac which means that the Year of the Rat comes round every 12 years. If you were born in 1948, 1960, 1972, 1984 or 1996 you will have plenty of vitality and be used to overcoming unexpected disasters. We are told that to get maximum good fortune in 2020 we should put something red or green on our desks. SGM-FX’s “Chinese” Nick who has spent the last few years in Singapore, is taking no chances and is scouring his local Fulham boutiques for a poinsettia.
Discussion and Analysis by Humphrey Percy, Chairman and Founder