May 2024
If credit spreads tell us about expectations, it seems everyone has forgotten!
AI and Uranium
Last edition I concluded with comments relating to how investors invariably learn valuable lessons through an investment cycle, but typically seem to forget those lesson next time around, just when they would be most valuable. Historically credit spreads, the difference in yields between high quality and low quality debt, has been a key indicator of levels of complacency, and high levels of complacency have tended to accompany important tops in markets. In this edition of Strategy Thoughts I review where credit spreads are currently and some other signs of growing complacency. I also further outline the long term optimism I continue to hold for the outlook for uranium and significance the boom in artificial intelligence has for this outlook.
