Brexit and its contagion

From

Bill Priest, CEO and co-CIO at New York-based Epoch Investment Partners, manager of the Grant Samuel Epoch Global Equity Shareholder Yield Funds, provides an update with two subjects — Epoch’s capital markets outlook and their view of the implications of Brexit; the latter is inextricably tied to the former. We analyse the potential impact of […]

continue reading

King, Keynes and Knight: Insights into an uncertain economy

From

One small footnote to the Brexit controversy: It has invigorated my interest in Lord Mervyn King’s concept of radical uncertainty. As the former governor of the Bank of England laid out so eloquently at PIMCO’s investment forum in May and in his recent book The End of Alchemy, “radical uncertainty” refers to uncertainty so profound […]

continue reading

SQM Research releases it’s market view report on the Labor Party’s negative gearing policy

From

SQM Research, Australia’s most respected property investment research house, yesterday released a report into the likely housing market effects of The Labor Party’s proposal to change negative gearing. Key findings Yields to rise International comparisons, historical precedents and the effective grossed up yield benefit all indicate that acquisition rental yields are likely to rise between 90 […]

continue reading

World economy: real confirmation of a rebound in economic data

From

The latest ‘Economic Insights’ paper from Principal Global Investors’ Chief Global Economist, Bob Baur, and Senior Global Economist, Robin Anderson, concludes that the world economy is in the midst of a mild cyclical upturn. The authors predicted this upturn earlier this year, and say it follows on from the climax of the three negative trends […]

continue reading

87 percent of businesses think economy is slowing or standing still

From

Eighty-seven percent of Australia’s small and medium businesses now think the economy is either slowing (35%) or standing still (52%), while only 13 percent think it is growing, according to the latest Sensis Business Index (SBI) survey.[1] The net balance score of -22 is down five points this quarter and is the lowest score in 12 months. […]

continue reading

The Illiquidity Illusion

From

Financial markets have gone through seismic changes since the global financial crisis, including the passage and continued implementation of both Dodd-Frank and European Market Infrastructure Regulation. These new regulations, geared to increase financial stability and reduce systemic risk, have led to bank consolidation, lower leverage ratios and less use of derivatives and related financing. While regulators […]

continue reading

The good, the bad and the likely: What the Government will – and could – consider in the upcoming Federal Budget

From

The 2016 Federal Budget is only a few months away. While tax reform is likely to be on the menu for Budget night, there are also other areas that are likely to be included, such as changes to retirement income streams. IOOF has foreshadowed what topics are likely to be included in the Budget – and […]

continue reading

The rates war

From

The aftermath of the global financial and sovereign debt crises have left economies worldwide struggling to find their footing. After years of government intervention, such as Quantitative Easing (QE) programs, some regions have shown signs of growth, while others remain concerned about potential deflation and decline. Central banks are taking divergent paths, bond markets are […]

continue reading

Liquidity flows: Economic cycle still on sustainable path

From

The US economy has faced persistent fears of setbacks, but the recovery continues to move forward. Our proprietary liquidity indicator suggests that the economic cycle remains on solid ground and that GDP growth in 2016 will be faster than in 2015. About the Liquidity Flows Indicator The Bureau of Economic Analysis (BEA) designed the liquidity […]

continue reading

Are central banks losing their effectiveness?

From

The use of low interest rates by central banks to help assist recovery is unlikely to have the desired effect, and may ultimately cause significant market disruption, says Chris Bedingfield, principal and portfolio manager at Quay Global Investors. “Much of the share market recovery since 2009 has been attributed to ‘easy money’ – including the […]

continue reading