[vc_video link='https://www.youtube.com/watch?v=5g22qy6DrLI'] [vc_separator type='normal' position='center' color='#000000' thickness='1' up='20' down='20'] Asset Class Performance October was generally a risk-off period with declines in both global equity and bond returns. Solid US economic data and uncertainty ahead of the US Presidential election saw both bond yields and the $US rise,...
How to prepare for falling term deposit rates In recent years, cash has stood out among defensive assets, reclaiming its title as ‘King’ thanks to steep interest rate hikes by the Reserve Bank of Australia (RBA). Since the cash rate peaked at 4.35% in November 2023,...
Market Trends: Rate cut expectations scaled back [vc_video link='https://www.youtube.com/watch?v=IhvHI8sKO_0'] [vc_separator type='normal' position='center' color='#000000' thickness='1' up='20' down='20'] Both equity and bond markets weakened in April due to a significant rebound in bond yields. Bond yields rose as sticky inflation and resilient economic growth caused markets to further scale back...
Equity Markets: What Will Happen When Interest Rates Fall? The conclusion of the recent rate hiking cycle ignited a surge in what market analysts are calling an “everything all at once rally”. However, as the focus shifts towards potential rate cuts, investors face a more nuanced...
WHAT IS A BOND? At their most basic level, bonds are a way for one entity to raise money by borrowing from another. For example, governments and corporations issue bonds to raise money from investors when they need new sources of capital to fund their activities. When...
What happened in 2022? The COVID-19 pandemic finally started to become endemic in 2022, though it continued to cause issues in China. Despite this, the past year has been challenging for investors due to various factors. Inflation rose significantly in 2021 and continued to increase, largely...
Value still holding up over growth Reflecting the improving economic outlook, global equities continued to move higher in March, though so too did bond yields. Commodity prices, by contrast, corrected a little, which perhaps reflected a tightening in Chinese credit conditions. Despite the ‘risk-on’ sentiment, the...
Key global trends – equities drop further Global equities eased back for the second month in a row in October as rising COVID-19 cases in Europe and the United States, concern over the lack of new U.S. fiscal stimulus and Presidential election jitters took their toll....
Key global trends – equities finally pull back Global equities had their first monthly negative return since bottoming in March, reflecting a shakeout in the high-flying U.S. technology sector. Despite the risk-off equity sentiment, gold prices also fell back (and commodities more generally), which likely reflected...
Key global trends - equity rally continues Global equities continued their V-shaped recovery in August, while the $US continued its decline. In a counter-trend move, perhaps reflecting growing investor confidence in an economic recovery, there was a small uptick in global bond yields and an easing...