Evans and Partners

Finding some pockets of value

Website Image

The recent combination of weak economic data and a dismal reporting season has focused attention back on the Australian market, and valuations in particular.  Pressures on the economy may not improve, as further weakness in housing construction appears on the horizon.

Click here to read the article.

Is TINA real?

Website Image

One of the difficult questions for investors is whether equity valuations deserve to be higher because of the large falls in interest rates in recent years. The subsequent rush into equities has been labelled TINA as in There Is No Alternative.

Click here to read the article.

The bears come out to play

Website Image

The bears are coming out to play. There is more talk in the press and by market commentators of the risk of recessions in the US and other countries and, depending on what you are reading, threats of another global financial crisis (GFC) event due to surging debt, income inequality, political risk, market liquidity and valuations.

Click here to read the article.

A new era for the Fed

Website Image

We appear to be on the cusp of a radical change in the approach to monetary policy in the US.  The Federal Reserve (Fed) has recently abandoned plans for further rate rises, declared an early termination of quantitative tightening and announced a strategic review of its monetary policy framework.

Click here to read the article.

Costs and competition

Website Image

The Australian reporting season was disappointing, with significantly more misses than beats and a large number of downgrades to forecasts for FY19 and FY20. There was some offset from a number of special dividends, although dividend forecasts were cut in a range of sectors.

Click here to read the article.

Australia: struggle street

Website Image

Australian equity valuations improved during the year-end sell-off but they did not become compelling. The forward price to earnings ratio (PE) briefly dipped below historical averages, however, the positive start to the year has pushed the market back above this metric.

Click here to read the article.

Event risk roadmap

Website Image

A large part of the market weakness since early October has been the number of event risks that have been hovering in the political and economic landscape for some time that are now coming to a head. Some have been resolved in recent weeks, while others are yet to be resolved.

Click here to read the article.