alternative assets, Investment, Macro Economics, Market Commentary

A small contango born out of COVID 19 Third Wave

Brent spread flipped into a small contango. Contango is a situation where the futures price of a commodity is higher than the spot price. Reason: Physical crude markets are indicating that demand is lower, much more so than the futures market. Background: a. New pandemic curbs; b. Slow vaccine rollouts in Europe Boris Johnson has warned the effects of a third wave of coronavirus will "wash up on our shores" from Europe. Extended lockdowns are being driven by the threat of a third wave of infections, with a new variant of the coronavirus on the continent. Con

Macro Economics, Market Commentary

Inflation? “Not yet.” Reset Markets? “Not yet.” Tapering? “Not yet.”

Fed Chairman Jerome Powell  quietened the market with just two words on Wednesday: “Not yet.” Powell’s comment sent yield on the 10-year Treasury bond tumbling and helped equity markets in US and Europe to recover from deep red to green. The US indices ended in the green, while the US dollar slumped over 0.5 per cent. “Not yet” to the expectation that the US Federal Reserve have to move earlier than expected to taper its bond purchases and consider interest rate hikes. "Tapering" is the gradual reversal of a quantitative easing policy implemented by a central bank to st

Investment

19 March 2021: Quadruple Witching

In folklore, the witching hour midnight, when supernatural beings are said to roam the earth, brought havoc and bad luck to those unfortunate enough to encounter them. What Is Quadruple Witching? Quadruple witching refers to a date on which stock index futures, stock index options, stock options, and single stock futures expire simultaneously. While stock options contracts and index options expire on the third Friday of every month, all four asset classes expire simultaneously on the third Friday of March, June, September, and December. Quadruple Witching days, al

alternative assets, Investment, Strategy Consulting

The recent resurgence of SPACs in the US will migrate across the Atlantic to London

What is a SPAC? Special Purpose Acquisition Companies (“SPACs”) are companies formed to raise capital in an initial public offering (“IPO”) with the purpose of using the proceeds to acquire one or more unspecified businesses or assets to be identified after the IPO SPACs are attractive because they allow the investor to co-invest with sponsors that have the requisite industry knowledge, expertise and access to potential acquisition targets that may not otherwise be available to investors through the public markets. The SPAC structure is also appealing because of its “mo

alternative assets, digital assets

Is bitcoin a safe-haven asset? Or a lie?

While checking-out of a DIY store over the weekend I overheard two young cashiers talking about investing all their savings in Bitcoins. I was concerned. Why? Fact:The price of bitcoin hit a new high of $57,505 nearly 6 times its value one year ago. Recently:In 2017, Bitcoin prices climbed 15-fold, before bubble proved unsustainable, and then bitcoin's price crashed 80% by the end of 2018. The mania:Is bitcoin "a lie," or  "the stimulus asset"?Is bitcoin "a lie," or  the new "safe-haven asset"? For me bitcoin is the new obsession. In the light of modern obsessions that have

alternative assets, digital assets, Investment, Strategy Consulting

Why did Tesla buy Bitcoin?

Tesla has put almost 8% of its reserves into the cryptocurrency.As per Form 10-K, on page 23, TESLA states, “In January 2021, we updated our investment policy to provide us with more flexibility to further diversify and maximize returns on our cash that is not required to maintain adequate operating liquidity. As part of the policy, which was duly approved by the Audit Committee of our Board of Directors, we may invest a portion of such cash in certain alternative reserve assets including digital assets, gold bullion, gold exchange-traded funds and other asset

HMO/Co-living, Property Consulting

HMO: Legal relevance of “proposed mode of occupation”

The power to impose conditions under sections 64 and 67, Housing Act 2004, in order to make an HMO suitable for a particular number of households or persons, can be used so as to limit the class of persons for whom the HMO is suitable. Part 2 of the 2004 Act the manner of occupation of a house and the general characteristics of occupants are considered relevant in contexts connected with HMOs and with housing standards generally. Therefore, in certain circumstances the operation of the legislative scheme will depend on the personal characteristics of the occupants or th

Legacy Planning, Wills, Succession Planning and Trusts

Legacy Planning: Asset Protection

Trusts are established for many reasons. One of the most common is asset protection. The term 'asset protection' refers to the suite of legal vehicles and techniques available to those who wish to ensure that their assets are shielded from these unforeseen, or unforeseeable eventualities. Trusts were developed by English common law with the initial purpose to minimize the impact of inheritance taxes arising from transfers at death and to facilitate transfers of wealth within the family unit. Asset protection trusts have a number of significant applications for indiv

BREXIT Consultancy

BREXIT: EU-UK Trade and Cooperation Agreement

Change unsettles business. "The fact is, any kind of uncertainty is poison for business, for investment, for any sort of decisions," says Mr Simonian (British Swiss Chamber of Commerce.) The post-Brexit trade deal between the UK and EU came into force on 1 January after negotiations came to a rushed end on Christmas Eve. Having a deal in place means that the fear that some goods could become more expensive has been avoided. What are the key points of the deal? Businesses offering services, such as banking, architecture and accounting, will lose their automatic

Property Consulting

Class O- Permitted Development Rights

What happens if works are undertaken before prior approval is sought? Definitions a.     Class O Class O of the GPDO allows for the conversion of offices to any number of dwellings b.    Permitted Development Rights Permitted development rights are an automatic grant of planning permission which allow certain building works and changes of use to be carried out without having to make a planning application. c. Town and Country (General Permitted Development) (England) Order 2015 Under this Order, the Se