“This time is different” have been described as the four most dangerous words in investing by Sir John Templeton. But there is good reason to believe this Australian home price downturn cycle will be different. Most assets (cash is an obvious exception) benefited from the...
Markets have moved with such speed and velocity in both directions since the beginning of the COVID outbreak it has been difficult for investors to adjust with so much conflicting information being circulated. Decades of data, however, shows that staying invested through volatile times has been...
Market Trends: Equities and bonds struggle After posting positive returns in July, both global bonds and equities fell back in August, with equity returns marginally weaker than that of bonds. The Bloomberg Global Aggregate Bond Return Index ($US hedged) was down 2.6%, reflecting a 0.5% rise in...
Market Trends: Falling yields boost stocks [vc_video link='https://www.youtube.com/watch?v=B7i57i7BR9c&t=1s'] [vc_separator type='normal' position='center' color='#000000' thickness='1' up='20' down='20'] Major asset classes: Equities, bonds and cash Global equities and bonds staged a rebound in July, with both outperforming cash. Emerging signs of weakening global growth saw bond yields ease, as markets scaled back central...
Global Equity Fundamentals – valuations OK, but earnings now a risk After some consolidation in May, global equities weakened further in June. The MSCI All Country World Index declined by 7.4% in local currency terms, after a decline of only 0.2% in May. The trend remains...
Global equities – stabilisation as bond yields level out Global equities continued to weaken in May, albeit with a smaller drop than evident in April – helped by tentative signs that the lift in global inflation and bonds yields may be near a peak. The MSCI All...
Global equities – rate fears return Global equity returns dropped back in April as fears of aggressive U.S. interest rate increases, China’s COVID-induced lockdowns and the ongoing war in Ukraine conspired to dent sentiment – despite still broadly solid global economic growth and corporate earnings. The MSCI...
Global Equities – March rebound Global equity returns enjoyed a modest 2.6% rebound in March, after a decline of 1.0% in February and a larger 6.1% decline in January. The rebound appears to reflect optimism that prospective U.S. interest rate increases should not unduly slow global...
Cash injection to provide short-term cost relief We review the Australian Federal government’s 2022/23 budget and assess its implications for Australia’s financial markets. •This is a pro-growth budget that emphasises cash payments to alleviate near-term cost of living pressures on consumers. These measures are mostly temporary in...
On 29 March 2022, the Government handed down the 2022-23 Federal Budget. Whilst we know this is a pre-election Budget, with the next Federal election to be held in May 2022, it is possibly not a typical pre-election Budget full of spending promises. This is perhaps...