Reviewing the booms and busts of the past decade

As the year comes to a close, it marks the end of a decade that has been full of twists and turns in the local and global economy. From the rise of China as a superpower to the great recession of 2008, the financial markets have experienced numerous cycles that have shaped the world we live in today. Joining CNBC Africa to discuss the last decade of financial markets is Adrian Saville, Chief Executive at Cannon Asset Managers. Saville dives into some of the key events and trends that have defined the past ten years, offering insights into the highs and lows of the financial landscape. One of the major topics of discussion is the recent IPO of Aramco, the Saudi Arabian oil giant. With a staggering two trillion dollar valuation, Saville questions the sustainability of such a high valuation, highlighting concerns about the economic model behind Aramco and the potential risks involved. He steers clear of buying into the hype surrounding the IPO, citing doubts about the long-term feasibility of the valuation. Saville also delves into three major stories that have shaped the past decade. Firstly, he discusses the phenomenon of negative interest rates in Europe, a controversial monetary policy that has failed to deliver the intended economic benefits. With German bonds offering negative yields, Saville explains the challenges this poses for capital allocators and pension funds. Secondly, Saville examines the rise of the 'fANG' stocks - Facebook, Apple, Amazon, Netflix, and Google - and their significant impact on the global equity markets, particularly in the US. He points out that the dominance of these tech giants has driven much of the growth in the US market, raising questions about their sustainability in the long run. Lastly, Saville delves into the geopolitical tensions between the US and China, with President Trump's 'America First' policy signaling a shift towards inward orientation. The trade war between the two economic powerhouses has had far-reaching consequences, impacting global economic growth and raising concerns about the future trajectory of international trade. Looking ahead to the next decade, Saville predicts that China will continue to play a crucial role in shaping the global economy, with advancements in technology and economic strength solidifying its position as a key player on the world stage. He also highlights the emergence of new economic powerhouses such as India, Ethiopia, Vietnam, and Bangladesh, which could potentially disrupt the current economic order. Overall, Saville's insights offer a comprehensive overview of the key events and trends that have defined the financial markets over the past decade, shedding light on the challenges and opportunities that lie ahead as we enter a new era of economic uncertainty and transformation.