SVET Reports
Monday's Markets Update (February 10, 2025)
On Monday, equities rose as investors start to be accustomed to Trump's threats of levies, focusing instead on gains in the tech sector, bolstered by AI chipmakers. Meanwhile, steel surged due to tariff plans. Stocks also increased across the EU and Asia, particularly in the tech sector. The dollar, gold, oil, aluminum, and other commodities rose in response to the tariffs. BTC, ETH, and SOL prices stabilized somewhat despite widespread bearish sentiment.
World Markets
Mexico’s auto exports fell 13.7% YoY to 219,414 units in January, hitting a three-year low. GM, Nissan, Stellantis, and Volkswagen saw sharp declines, while Toyota surged. The USA remained the top destination, receiving 83.6% of exports. 1Y trend: "Up" (Inegi)
Commodities
Gold hit a record high above $2,900/oz, driven by safe-haven demand amid Trump's new tariffs, trade war fears, and expectations of looser global monetary policy. Central bank purchases, including the PBoC, further bolstered prices. 1Y trend: "Up"
WTI crude rose 1.3% to $72.3/barrel amid supply concerns from new Trump's sanctions on Iranian oil shipments. Trade tensions and China's retaliatory tariffs capped gains, keeping markets cautious amid economic uncertainty. 1Y trend: "Side"
Comment: What's Up With Autocrats ?
The world is divided into two unequal parts: one that believes a single head is better than many and another that thinks otherwise. Historically, the former has dramatically prevailed. The annals of history are essentially a chronicle of megalomaniacs—autocrats who have brought us the prosperity we enjoy today and, according to the first part of the world, will continue to pave the way for a brighter future.
On the other hand, the second part of the world argues that it is individual ingenuity, talent, and entrepreneurship that have shaped history. They view autocrats as leeches who exploit social cohesion to seize power and accumulate wealth at the expense of others. Who is right? That may be determined in the next 10 to 20 years, perhaps through another total war or, hopefully, through technological and economic competition. Yet, it is unlikely that a clear answer will emerge. Humans are not machines—at least, not yet. Our nature is inherently controversial, which is essential for survival. Therefore, it is better for us to remain contentious without spiraling into thermonuclear conflict over these differences.
I believe the future will be decentralized, allowing individuals to choose where and how to live based on their circumstances, performance, and age. If we indeed remain divided for an extended period, I hope one side will remember that their autocrats’ primary role is to manage competing interests—essentially, to maintain a democracy within their own royal courts. Conversely, those in the second part should not forget that all technical and social advancements have been made by alliances led by megalomaniacs.
Perhaps the solution lies in avoiding the creation of centralized bureaucratic positions altogether—finding ways to redirect the talents of megalomaniacs toward exploration of new planets, so to speak. But this is merely my opinion, coming from the perspective of Part Two, of course :)