Market Update 16 April 2021 Investment markets and key developments over the past week While Japanese and Chinese shares fell again over the last week, US and European shares pushed higher helped by good economic data, a strong start to the US earnings reporting season, ongoing dovish comments from the Fed and tame bond yields. Reflecting the strong US lead, strong local data on confidence and jobs and a bit of catch-up Australian shares rose to …
The importance of starting point valuations for investment returns – and where are we now? Key points Starting point valuations – like yields and price to earnings multiples – are a key driver of potential medium term investment returns. For growth assets it’s often more complicated with, eg, the level of interest rates playing a big role. At present valuation starting points for term deposits and bonds suggest low medium-term returns. For shares they …
Is hydrogen the silver bullet that organisations are leaning on? Can renewable hydrogen reduce emissions and help solve climate change? As the dangers associated with climate change become more widely understood and accepted, the fight to save the planet and its people has intensified. As investors, we believe that stopping climate change will aid economic growth – as such we strive to understand how the companies we invest in can not only manage these …
Market Update 09 April 2021 Investment markets and key developments over the past week While Japanese and Chinese share fell over the last week, US shares rose to a new record high helped by strong data, stimulus optimism and dovish comments from the Fed and Eurozone shares also rose solidly. Reflecting the strong US lead, RBA dovishness and playing catch up after underperforming the previous week the Australian share market rose sharply to …
RBA on hold and likely to remain easy for a long while yet as full employment gets more of a look in Key points The RBA left the cash rate at 0.1% at its April meeting. While the economy is recovering faster than expected the conditions for a rate hike – actual inflation sustainably in the 2-3% target zone and wages growth well above 3% – are unlikely to be met for several years. The …
Market Update 01 April 2021 Investment markets and key developments over the past week While US shares fell fractionally over the last week despite a bounce in tech stocks, Eurozone, Japanese and Chinese shares rose. Australian shares also fell fractionally over the last week with strong gains in industrial and material shares being offset by weakness in utilities, energy, retail and health care stocks. Bond yields generally rose slightly but metal, iron ore and oil …
Market outlook Q&A – global recovery, vaccines, inflation, the risk of a share crash, Aust house prices and other issues Key points Global recovery is on track. Vaccines are working. JobKeeper’s end won’t derail Australia’s recovery. Inflation could become an issue in the medium term. Shares are at risk of a correction but are supported by economic and earnings recovery. Australian house prices are booming again but expect measures to slow it down in …
Econosights: Australian economic policy beyond COVID-19 Key points The post-pandemic economic rebound is strong in Australia. But, after the initial bounce in activity, there is a need to reinvigorate the drivers of long-run economic growth. Productivity growth has been low in Australia and needs to lift to see a rise in incomes and living standards. Higher productivity growth is achieved through economic reform. Areas in Australia that deserve policy attention include: lifting household incomes …
Market Update 26 March 2021 Investment markets and key developments over the past week Market sentiment was more cautious this week on concern about the economic reopening from rising COVID-19 cases and vaccine delays. Seasonal impacts affect sharemarkets as well and quarter-end profit taking may also be contributing to sharemarket weakness. US shares on the S&P500 were just negative over the week at -0.1% while the heavier tech NASDAQ index was down by 1.8%. NASDAQ …
Market Update 19 March 2021 Investment markets and key developments over the past week Global sharemarket performance continues to diverge. US shares started the week strongly but higher bond yields following the US Federal Reserve’s meeting led US shares down 0.7% over the week for the S&P500 with the heavier tech weighted NASDAQ even weaker (-1.5%). The theme of a rotation out of US to global shares continues to play out with European shares up …
