Stephen Hawking, the brilliant British theoretical physicist who overcame a debilitating disease to publish wildly popular books probing the mysteries of the universe, has died, according to a family spokesman. He was 76...
Shortsighted Tax Proposals
Why All The Share Market Volatility?
Share Pullback: 7 Reasons Not To Be Too Concerned
The pullback in shares seen over the last week or two has seen much coverage and generated much concern. This is understandable given the rapid falls in share markets seen on some days. From their highs to their recent lows, US and Japanese shares have fallen 10%, Eurozone shares have fallen 8%, Chinese shares have fallen 9% and Australian shares have lost 6%. This note looks at the issues for investors and puts the falls into context...
Sharemarkets sell-off, finally...
Interest rates unchanged
Time for a share market correction?
Industry Super Funds On Notice...
2018: A List of Lists
Although 2017 saw the usual worry list – around President Trump, elections in Europe, China, North Korea and Australian property – it was good for investors. Balanced super funds had returns around 10%, which is pretty good given inflation was around 2%. This year has started favourably but volatility may pick up as geopolitical threats loom a little larger and US inflation rises. This note provides a summary of key insights on the global investment outlook in simple dot point form...
US interest rates: The Fed hikes again
Market Update: Bubbles, busts, and bitcoin
Interest rates: US Fed begins to tighten
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...
INTEREST RATES ON HOLD, GROWTH RETURNS...
THE GFC TEN YEARS ON
QUARTERLY HOUSING REPORT
THE THREAT OF WAR: IMPLICATIONS
Rates On Hold
Despite being under pressure from tepid economic growth, weak inflation and a surging Australian dollar, the Reserve Bank has left interest rates unchanged at its August board meeting.
The stance was all but universally expected, given RBA governor Philip Lowe made it clear last week that rates would not be moving for a considerable period of time.
The market had priced in a zero possibility of a rate change into its calculations.
The RBA last changed settings in August 2016, when it cut the official cash rate by 25 basis points to the current historic low of 1.5 per cent.
Market Volatility
Three reasons not to be fussed...
For much of this year, there has been a surprising divergence between share and bond markets with shares up in response to improving growth and bond yields down in response to weak inflation.
Some feared that either bonds or equities had it wrong, but in a way it seemed like Goldilocks all over again – not too hot (ie benign inflation) but not too cold (ie good growth). However, the past week or so has seen a sharp back up in bond yields – mainly in response to several central banks warning of an eventual tightening in monetary policy.
Over the last week or so, 10 year bond yields rose 0.2-0.3% in the US, UK, Germany and Australia. This may not seem a lot but when bond yields are this low it actually is – German bond yields nearly doubled. This caused a bit of a wobble in share markets.
The big question is: are we seeing a resumption of the rising trend in bond yields that got underway last year and what does this mean for yield sensitive investments and shares? Since central banks are critical in all of this we’ll start there.... Read on
GLOBAL POLITICAL RISKS
It's now 12 months since the British voted to leave the European Union, an event that some saw as setting off a domino effect of other European countries looking to do the same. This was also followed by a messy election result in Australia, Donald Trump's surprise victory in the US presidential election, increasing concern around North Korea and a steady flow of terrorist attacks.
The combination of which seemed to highlight that geopolitics is now more important, and perhaps more threatening, for investors than had previously been the case. But while political developments have figured highly over the last year, the impact on markets has been benign. Since the Brexit vote, global shares are up 22% and Australian shares are up 13%.
So what gives? This note looks at the main issues. Read more here
RATES REMAIN ON HOLD
The Reserve Bank of Australia (RBA) has decided to hold the cash rate at 1.5 per cent in June, following its board meeting today.
The official cash rate will remain unchanged at 1.5 per cent as a result of today's decision by the RBA.
The decision was widely anticipated, with the futures market pricing in a 92 per cent of no change to the cash rate at the close of trading on Friday.
Rick Maggi