2017 has been a good year for US stock-market indices, in large measure due to the staggering performances of the Big Five of the technology sector, which are hitting levels not seen since the dotcom boom 20 years ago. Characterized by unmatched success in such areas as platform strength, innovation reinvestment, acquisitions and talent attraction, these technology giants seem guaranteed to keep on winning.
On August 8, US bank Goldman Sachs reported that the amount raised by cryptocurrency and blockchain start-up companies through early-stage venture-capital funding had been surpassed by that raised by ICOs (initial coin offerings) during the months of June and July.
Chile has been one of South America’s mainstays, lauded as possibly the continent’s wealthiest and most stable country. But the Chilean economy, the health of which is heavily dependent on copper exports, has suffered greatly since the decline of the commodity super-cycle in 2014-15, and credit-rating agencies are showing no mercy—making life even more difficult for the country’s incumbent government.
The fears that caused a downturn in Mexican stocks are beginning to lift, revealing resilient and buoyant performance as the country’s main stock index, Mexbol, hits record highs. The run-up to the US presidential election stoked fears amongst international markets as the Republican candidate
Just when the US coal industry had been persuaded that its glory days were over, President Donald Trump came to the rescue with his Energy Independence Executive Order. Coal executives rejoiced, but even the president may not be able to save an industry that is being battered by something more serious than “clean” government regulations, and that is competition from alternative power sources.
Malaysia—beset by scandal, political turmoil, dropping oil prices and falling currency—hasn’t appeared to be the land of opportunity to investors in recent years. But 2017 has brought hope of a turnaround to this Southeast Asian emerging-market economy, with factors such as improved trade performance, infrastructure development and a stabilizing currency resulting in renewed investor confidence on the nation’s markets.
Stock markets have undergone some fairly seismic structural changes over the last 10 years or so. Arguably the most ground-breaking of these changes has been the advent of exchange-traded funds (ETFs).
The threat of catastrophic consequences from rampant global warming has given rise to a relatively new financial instrument, the green bond, issued by governments and institutions that are successfully combining healthy financial returns with equally healthy measures to tackle environmentally unhealthy carbon emissions. These investments are now regarded as an integral part of the global effort to combat climate change.
In some parts of the world, strict bank lending restrictions keep home ownership as only a dream to many, but in Australia banks offer interest-only and low-rate mortgages, which has resulted in plenty of mortgages and soaring house prices. Investors have flooded into especially urban markets, seeking tax breaks and capital gains, causing prices to jump—and authorities fear a property-bubble burst may loom.
Russia is amongst the global heavyweights, but its economy and stock markets are vulnerable to forces outside of its control, especially the price of oil but also politics in other parts of the world, such as the United States. The country’s fortunes will depend on how oil prices fare but also on how well relations with the new administration in Washington pan out.