Understanding BRICS+ is not just about observing geopolitical changes; it’s about identifying actionable insights that can inform investment strategies in a rapidly evolving financial landscape.

The US Federal Reserve’s (Fed) Federal Open Market Committee (FOMC) will hold its next meeting on 17-18th September and is widely expected to cut official interest rates by 0.25%, although there is an outside chance of a 0.50% cut. A rate cut has most likely been priced into both equity and bond markets, but the potential remains for a volatile market reaction to the meetings depending on the magnitude of the cut and the language that Fed chair Jerome Powell uses.

China’s Third Plenum has had limited coverage in the Western financial media despite containing what Carrara considers several significant policy shifts – especially given the impact that the Chinese economy has on global markets. This note breaks down the event’s policy agenda into the key areas that may have an impact on global markets and hence investment portfolios.

Last month, the US Congressional Budget Office (CBO) released “An Update to the Budget and Economic Outlook: 2024 to 2034” which contains its baseline projections of what the US federal budget and the economy will look like in the current year and over the next 10 years if laws governing taxes and spending generally remained unchanged.

With aggressive monetary stimulus well behind us, the first half of 2024 is starting to show some stark changes in credit markets from this time last year. Although liquidity is slowly leaving the system, pricing would indicate this isn’t happening uniformly as capital is being reallocated amongst credit classes. This note provides recent observations across public and private credit markets and offers insights for investors considering the space.

Carrara is globally focused and currently sees Asia as the most attractive investment destination in the world. We also think that increased exposure to the region can offer investors portfolio diversification, exposure to the strongest economic region in the world and access to global leaders in key industries.

The purpose of this report is to provide a detailed overview of the semiconductor supply chain to help investors better understand of the different segments and components that go into making a chip. Additionally, we would like you use this as an opportunity to demonstrate how and where Carrara Capital are investing to take advantage of this attractive opportunity.

To have a thorough understanding as to why a credit return profile is asymmetric, we look to understand the nuances underlying credit exposures.

2023 was a difficult year across the private markets space with many companies finding funding difficult to secure, despite apparent business success. This has led to more rational valuations and a willingness for founders to offer deals to give their businesses addition time to realise their potential. While we don’t expect 2024 to be a boom year, we are seeing some excellent investment opportunities and think the current environment is ripe for investors willing to do their due diligence.

The resurgent dominance of China in the global ‘critical minerals’ supply chain is a growing concern for western countries. Until alternate supply chains can be developed – likely a 10+ year challenge – China holds significant and increasing leverage over the US and Europe. The scale of the impact on global markets is both underappreciated and rapidly unfolding, yet it is crucial for investors to understand the full landscape to make informed decisions.