Brokerage

Despite, or maybe because of, uncertain times, hedge funds are attracting plenty of investor interest, with high inflows not seen since 2015. Reasons for their success include their strong performances and opportunities for diversification during volatile periods. Most experts predict hedge funds will deliver positive results in 2022.

Financing legal expenses in exchange for a share of damages in legal disputes, commonly known as litigation finance, has grown from a niche to an institutional investment strategy. Investors are increasingly seeking exposure to legal assets as they bear little correlation with more traditional asset classes and offer unique diversification.

Last year, real estate investment trusts benefited from a sizzling US real-estate market fuelled by low mortgage rates and short supply. With conditions rapidly changing, how will REITs perform in 2022? Expectations are positive, with snowballing economic growth and staff returning to the office boding well for commercial real estate.

The words Netflix and streaming are virtually synonymous, with the company defining the space since 1997. The streaming service has run up against some logjams, with subscriber numbers flowing the wrong way, nervous investors selling Netflix stock and competitors taking market share. Remedying the situation will require a change of course.

Mexico took the historic step of nationalising its valuable lithium industry, even though it is some way off from being active and productive. But questions about the move’s legality in light of the USMCA trade treaty have emerged, along with reminders about other Latin American leaders who were booted out after nationalising resources.

When speculative trading goes badly, it often goes extraordinarily badly for those caught on the short end. March’s LME nickel short squeeze pummelled Chinese nickel-maker Tsingshan Holding Group. Trapped by the war-driven soaring prices of the usually sedate metal, the Asian giant had no choice but to scramble to cover its losses.

US stock markets posted the worst quarterly performance since the market crash in early-2020 that was brought on by the outbreak of the coronavirus pandemic. The S&P 500 lost nearly 5% during the January-March period, and as such, has gotten tongues wagging over the prospect of a much deeper market crash transpiring in the near future.

Farmland is the planet’s most treasured asset, and today, it is attracting increased investor attention from all quarters, causing farmland prices to post healthy gains. While the wealthy buy up huge swathes of available farmland, opportunities—from shares to REITs—for the ordinary investor to benefit from the farm real-estate boom remain.

Space conjures up the image of limitless possibilities, perfectly describing the burgeoning space economy. As technology allows humans to explore and exploit the universe’s vast resources, investors are finding this new frontier full of untapped opportunities. Infinite investment avenues await the investor, but are they financially sound?

Coal’s demise seemed inevitable not long ago, as the world sought cleaner energy sources. Instead, the price of coal has risen sharply during the pandemic in response to soaring demand, mainly from heavyweights such as China and India. How long the price of coal stays high will depend on the global commitment to achieve net-zero emissions.