It has been a remarkable period for global equities since early 2016. Global equities have returned around 40% over that time, compared with a 2% return for global bonds. All the stars have aligned for equities over this period; better global growth and earnings has occurred at the same time as inflation has fallen, monetary policy has remained easy and the $US has weakened.
Click here to read the article.
Equities had a very strong month over October with all markets recording solid gains. The MSCI World ex Australia Index (hedged) was up 2.7% while the domestic S&P/ASX 200 Accumulation rose 4.0%.
Click here to read the article.
Global equities were the notable asset class in September continuing their steady uptrend over the month, up 2.49% on an hedged basis. The primary driver was the robust economic growth being recorded globally and the flow-on to company profits.
Click here to read the article.
The low interest rates of recent times along with periodic turmoil in investment markets has provided us with a reminder of the importance of the income (cash) flow or yield an investment provides. It’s particularly important for those relying on investment income to fund their living expenses.
Click here to read the article.
Despite Australia abandoning its clean energy target, recent global developments suggest to us that the clean energy revolution is accelerating and is increasingly being led by China.
Click here to read the article.
All asset classes recorded minimal change over August despite being impacted by a range of factors, both political and economic. Domestically, key issues centred on the reporting
season and ongoing political uncertainty for the government because of the “dual citizenship” issue.
Click here to read the article.
The US Federal Reserve provided few surprises following its September meeting. While it left interest rates on hold, it confirmed that it will begin what it calls “balance sheet normalisation” next month and continued to signal its expectation that it will raise interest rates again in December and in the years ahead.
Click here to read the article.
Equity markets have benefitted from better economic growth, declining inflation and easy liquidity conditions over the past two years. We expect a weaker, though still positive, outlook over the next year.
Click here to read the article.
Central bank cash rates and their outlook were the major features impacting markets over July. Overseas most central banks, except Japan, indicated that monetary conditions and interest rates had bottomed and were likely to tighten, albeit gradually, from here. In Australia, the RBA noted that the neutral cash rate is around 3.5% p.a., or some 200 basis points above the current cash rate.
Click here to read the article.
The economic and investment cycle is alive and well. Talk of a “great moderation” was all the rage prior to the GFC but the GFC reminded us yet again that periods of great returns are invariably followed by a fall back. If returns are too good to be true they probably are.
Click here to read the article.