Quotidian Investments Monthly Commentary – July 2022
Following six months of dismal performance in equity investment markets typified by confected ‘fears’, synthetic doubts supported by deliberately negative misinterpretations of data have given rise to quite obvious false pricing. During this period the financial media, hand-in-glove with equity market-makers, constructed an alternative reality and between them they created a previously unknown state of being; simultaneously both woke and comatose…! This month it is a relief to be able to be able to report a long-awaited and very welcome return of common sense and economic reality. Hopefully this will now persist.
As anticipated in our May report, Quotidian’s daily analysis indicated that we hit rock bottom of this recent extended downturn in June and since then US stock-markets (which are the standard bearers for and give a lead to global equity markets) had their best month for two years in July. And about time too.
Whilst we are not completely out of the woods just yet, our renewed confidence and optimism for a return to normality and reliability in equity markets is supported by the Federal Reserve’s assurances that its plan for controlling inflation is on target coinciding with a raft of better than expected second quarter corporate results which were accompanied by largely positive future profitability projections.
One major disappointment has been Meta (the company which used to be known as Facebook) whose latest results fell some way short of satisfactory. On closer examination, however, Meta’s main problem this year has been caused by a change in Apple’s privacy settings which have had a detrimental knock-on effect to the tune of $10 billion on Meta’s targeted advertising methods. This is now priced in to Meta’s equity status and its future projections are more positive.
On 31st July 2022 the FTSE100 index closed the month at 7423.43 (a rise of +3.54% in the month of July itself) and it therefore now stands at +0.53% for the 2022 calendar year to date.
By comparison, the Quotidian Fund’s valuation on the 31st July shows a rise of +17.94% for the month and it follows that the Fund’s year to date performance figure closed July at minus 31.75% (a vast improvement over the previous month).
Regular readers will no doubt celebrate the brevity of this month’s report which is based simply on the fact that the transmission of good news (especially after such an extended period of negativity) does not require deeper elaboration, fanfare or further ado.