Global investor sentiment was bullish towards the end of December, which is not only consistent with the Santa Claus rally but may also reflect investor optimism about stronger global economic conditions into 2020.
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Navigating local risks
Valuations for the Australian market have reached extremes. The forward Price Earnings Ratio for the overall market has only been higher at the peak of the tech bubble in 1999 and valuations have never been higher compared with the US.
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Review of 2019, outlook for 2020 – the beat goes on
2019 has turned out to be a good year for investors, defying the gloom of a year ago. In fact, some might see it as perverse – given all the bad news around and the hand wringing about recession, high debt levels, inequality and the rise of populist leaders.
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Market Update – December 2019
Domestic and global markets displayed strong performance in November, with US and Australian equity markets both reaching all-time highs. These appeared to be minimally impacted by ongoing concerns surrounding poor economic data and various geopolitical risks including those brought about by the US-China trade war.
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Financial evaluator
The Australian market hit record highs in terms of index points while valuations, using forward price to earnings ratio (PE) as a proxy, jumped above 17x for the first time since 2001. This is occurring at a time when earnings pressure is intensifying.
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Five reasons why the $A may be close to the bottom
For a long time, we have been bearish on the Australian dollar, seeing a fall into the high $US0.60s and revising this to around $US0.65 in May. In early October it fell to a low of $US0.6671.
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Market Update – November 2019
After a period of predominately negative news, the leaders and trade representatives of the US and China made some progress in the form of the phase one agreement.
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Events dominating again
We have entered another period where event risks are heightened and appear set to dominate market outcomes over the rest of the year. Equities have a better relative valuation than bonds and represent the only major asset class where investors have the potential to make decent returns on capital over the next years in our view.
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21 great investment quotes
The world of investing can be confusing and scary at times. But fortunately, the basics of investing are timeless and some investors (often the best) have a knack of encapsulating these in a sentence or two that is insightful and easy to understand.
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Market Update – October 2019
There were signs of the US-China trade tensions easing earlier in the month as a result of news of China exempting specific US products from previous tariffs and the US delaying a 5% increase to tariffs on US$250 billion worth of Chinese imports.
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