Markets moved higher overnight, led by strength in technology and financials, as investors  responded positively to earnings momentum and signs of continued economic resilience. US equities finished off their intraday highs but still closed firmly in positive territory, reflecting renewed confidence in both corporate profitability and the broader growth outlook. 

 Semiconductors were a standout, with chipmakers and equipment suppliers rallying after Taiwan Semiconductor reported another record quarter and signalled a significant increase in capital expenditure for 2026, reinforcing conviction around the long-term AI infrastructure buildout. Financials also added to gains as major US banks delivered earnings that highlighted ongoing strength in trading and wealth management divisions. Supporting sentiment further, the latest jobless claims data came in below expectations, pointing to a labour market that remains robust despite tighter financial conditions. 

Commentary from Industry Leaders

This week I reviewed an article written by Jim Allworth who is an investment strategist from RBC Dominion Securities. 

The overall theme: Positive but measured returns - markets will likely move higher but with more modest upside than the recent multi-year rally. 

Key points:

• Equities expected to be positive: Developed market indexes can deliver gains in 2026, though above-average returns are harder to sustain after three strong years. 

• S&P 500 & Growth Drivers: Performance depends on avoiding recession, supporting GDP momentum and keeping the AI narrative intact. 

• Consensus GDP & Earnings: Near term US growth (approx. 1.9% consensus) could swing markets - stronger growth would materially boost returns. 

• Valuations & Positioning: RBC suggests staying market weight on equities - avoid over-committing and have defensive triggers ready.

• Regional Nuance: Stimulative policies (rate cuts, fiscal support), but still headwinds like debt, geopolitics and trade uncertainties. 

• AI Capex Relevance: Still large, but growth in AI spending may moderate and capacity constraints (e.g., power supply) could pressure margins. 

Prepare for positive but not blockbuster returns - focus on discipline exposure, watch GDP and earnings cues and manage equity risk tightly. 

Economic News 

Recent discussion around the US potentially unlocking Venezuelan oil supply is unlikely to translate into meaningful relief for energy prices in the near term. 

While Venezuela holds some of the world's largest oil reserves, years of underinvestment, infrastructure decay and operational constraints mean production increases would be modest and slow to materialise. Any additional barrels would be marginal in the context of global supply, suggesting limited impact on oil prices. For investors, this reinforces that energy markets remain driven by broader geopolitics, OPEC policy and global demand trends rather than headline policy shifts alone.

Market Snapshot 

• Australia: ASX hits 10 week high as tech and small miners jump. 

• United States: Dow 0.60%, S&P 500 0.26%, Nasdaq 0.25%. 

• Bonds: US 10-year yield at 4.16% and Australian 10-year yield at 4.68%.  

• Gold: Declined overnight.

Key Events Coming Up

• Thursday 22nd, January: US GDP (QoQ) (Q3) 

• Thursday 22nd, January: US Initial Jobless Claims 

Investment Update

As we move into 2026, we are seeing a pickup in opportunities across both listed and private markets, with deal flow continuing to improve. The following opportunities are only open to eligible wholesale investors. 

Today marks the close of expressions of interest for a secondary allocation in SpaceX shares, sourced via an employee transaction. We have seen strong interest in this opportunity and will be progressing allocations shortly. 

Expressions of interest remain open for a high-quality commercial office asset in Canberra, leased to an Australian Government department and offering a weighted average lease expiry (WALE) of approximately nine years. This opportunity provides long-duration income supported by a strong tenant covenant. 

Opportunity Overview

• Core-plus A Grade commercial office asset.

• Fully leased to a federal government tenant under a long-term agreement. 

• Modern infrastructure, recent capital upgrades and high NABERS rating. 

Target return profile (for information purposes only - not guaranteed) 

• Forecast approx. 9-10% annual cash yield.

• Target mid-teens IRR (16%).

• Target approx. 1.9x equity multiple over the investment term.  

These metrics reflect a focus on income durability, capital preservation and disciplined leverage rather than speculative growth. 

• Defensive Income Profile: Near fully leased with a long WALE and contracted rental growth. 

• Compelling Entry Point: Acquired at a cap rate materially above long-term averages, reflecting dislocated pricing rather than asset quality. 

• Sustainability-led: High NABERS energy and water ratings, aligned with government and institutional ESG requirements. 

• Asymmetric Risk Profile: Structural, regulatory and market barriers support long-term tenant retention. 

• Institutional Scale: Large-format asset with replacement cost support and limited competitive alternatives.