“V” is for Victory
George Orwell, known for writing Animal Farm (1945) and Nineteen Eighty-Four (1949), didn't write much about sports, yet his famous description of the Olympic Games as: "war minus the shooting" wasn’t too far off the mark.
There’s little doubt that the Olympics is political, but it’s also about talent and ability exemplifying the true spirit of competition. Back in 1896, men (women began competing in 1900) showcased their courage and skill in a handful of crude battles focused on strength and endurance. Today, the Games highlight the diversity of athletes and sports from around the globe, all dedicated to winning for the pride and glory of their country. Despite the underlying geopolitical currents in some well-known places this year, the extraordinary abilities of the athletes despite rain, heat and pollution, continue to inspire and elicit moments of sheer awe.
The debut of "new" sports such as Breaking, Surfing, and Speed Climbing pushes for even more variety and inclusion which echoes the newly positive sentiment of the once shaky IPO market. As tech companies soared to new heights in the first half of the year, the IPO markets, much like the multiple summer heat waves, has begun to heat up, with 54 go-public events raising a combined total of $10.5 billion. After a quiet Q1, which saw zero SPAC IPOs, there is renewed hope that this market will resurface in Q3 and Q4.
The return of market turbulence is global in nature and, like the Olympics, spotlights a battleground where the stakes are high and the competition fierce. Instead of javelins, balls, and discs, companies are meticulously selecting their words to communicate strategies amidst the looming threat of a soft recession. As they vie for dominance, striving to outperform, a hit or miss on earnings can rapidly reshuffle the rankings and alter the stakes. Just as in the Olympics, there are winners and losers, and the outcomes of any given quarter can significantly impact their future.
This week, heightened market volatility amplified these dynamics. Investors are reacting to a complex mix of economic indicators, geopolitical tensions, and company-specific news. As "V for Victory" week unfolds in the City of Light, "V for Volatility" grips the markets—a hallmark of August, the peak vacation month.
The stage is set for a dramatic showdown in September where the patient will prevail. Until then, it’s best to listen and watch, and root for the home team.
