We have been fighting wars for the past two years. In 2020 the war against a virus began, and now the aggressor is Russia. Slowly but surely the war against the virus is being won, but the war in the Ukraine is still undetermined.
After some very negative returns on equity markets worldwide, we have seen a welcome bounce back over the last few days and the balance between buyers and sellers are being restored. As equity investors we have to be optimists because we commit our money to something that will happen in the future. Looking at graphs and all sorts of statistics is only a reflection of what has already happened and there is no guarantee that it will happen again. That is why understanding the future is so important.
There is a company in the USA called Nvidia that is playing a vital role in our present, and will continue being a major force going forward. If you want to do yourself a favour, go to YouTube and search for “GTC 2022 keynote with Nvidia CEO Jensen Huang”. You will probably only manage a few minutes of the discussion before you get bored but there are some interesting points made about the future of cars after about one hour. This will give you an idea of what humanity is capable of and where we are heading. Nvidia is not a cheap share and never will be. The share price is up 933% over the last 5 years, compared to 384% for Apple.
The world is currently in one of those perfect storm situations where interest rates are rising to stop rampant inflation caused by supply constraints, rocketing oil prices and consumers who still have lots of stimulus money sloshing around in their bank accounts. Countries have a lot of debt and geopolitical issues are causing globalization to reverse. In situations like these the spotlight is on politics and all we hear about in the news are Putin, Biden, G7 and G20. Quite frankly, that is not the best our world has to offer
There is another side: the scientists and engineers working at companies such as Nvidia, Moderna, Tesla and SpaceX. These people should be our super heroes and should command the spotlight – because they make the world a better place, not a pile of rubble.