Daily Commentary

MarketMinder’s View: Please note, as this piece mentions some specific firms, MarketMinder doesn’t make individual security recommendations, and any names cited here are coincident to the broader theme we wish to comment on. With the financial industry—and legislative initiatives—pushing wider adoption of private equity (PE), we think this is something for investors to be aware of: “Roughly a fifth of all PE sales this year involved groups raising money from new investors to acquire businesses from their older funds, up from 12-13 per cent the previous year, said Sunaina Sinha Haldea, global head of private capital advisory at Raymond James. Such transactions sell assets already owned by a PE group to so-called continuation vehicles—newer funds also managed by the firm. The tactic enables PE firms to return cash to investors in older funds, but has prompted concerns about potential conflicts of interest.” While we have nothing against PE per se, such practices deserve close scrutiny and underscore the extra due diligence those considering PE stakes must undertake to understand their investment—and potential returns. Like the article notes, “some backers of PE funds such as pension funds are concerned that in such transactions the same buyout firm is on both the sell and buy sides of a deal. Some investors fear firms could underplay the value of the assets being transferred, to the detriment of the original fund backers being offered an exit.” That is a potential blind spot worth being aware of, especially if investors rely on their managers to do the analyzing for them. As with any investment, it is critical to look past the hype and dig into the details to ensure you know exactly what you are buying.

MarketMinder’s View: “South Korea’s annual exports surpassed $700 billion for the first time on Monday, reaching the milestone seven years after the country first topped $600 billion in 2018, according to the Ministry of Trade, Industry and Energy and the Korea Customs Service. ... The government described the milestone as ‘qualitative growth’ achieved despite a tougher trade environment that included U.S. tariffs and wider protectionist policies. It said steady exports also helped support domestic growth and jobs during a period of weak local demand.” Record-high South Korean exports highlight a few points about global trade in 2025. One, 15% US tariffs (with semiconductors exempted) haven’t dented commerce overall, though bilateral trade with America is down year over year. Two, non-US trade is more than making up for the US’s “protectionist policies.” And three, as a major hub in the global tech-supply chain, demand remains robust. But that isn’t all: “... with automobiles and ships also among the main drivers. The government also pointed to growing shipments of consumer-facing products such as food and beauty items as additional sources of momentum.” This isn’t just about computer chips, as global trade is more resilient than many imagine.

MarketMinder’s View: The titular challenges include “sharp trade tensions, uneven yet moderate growth, and rising concerns over elevated inflation and debt levels in many parts of the world.” The article also wonders about the prospect of an AI bubble popping. But the key here for investors is this passage: “As the year draws to a close, many of these problems are expected to continue into 2026.” To us, that is an inadvertent admission that the “array of risks” highlighted here isn’t anything new. Remember folks, markets move most on surprise, and anticipation is mitigation. We aren’t saying the global economy and markets are risk-free—that is never the case—but long-analyzed and discussed developments lack the ability to negatively surprise stocks. All the challenges mentioned here aren’t shocking anyone following the news, which is worth considering as you prepare for the new year.