Science and medicine appear to be getting the upper hand of coronavirus – implications for investors

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Key points There are increasing signs that science and medicine are getting the upper hand against coronavirus: new global cases are in decline; vaccines are working; half the global population and 73% of Australians have had at least one vaccine dose; and there are more treatments for coronavirus. Key to watch will be whether hospitalisations... Read more continue reading

Weekly economic and market update – week ending 15 October, 2021

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Investment markets and key developments Global share markets rose again over the last week helped by a good start to the US earnings reporting season, solid economic data and US inflation data not being as bad as feared. For the week US shares rose 1.8%, Eurozone shares gained 2.5%, Japanese shares rose 3.6% and Chinese... Read more continue reading

The durability of real return funds in an inflationary environment

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As the world adjusts to COVID and vaccination rates continue to rise, there’s much hope that life will return to some form of normal in the near to medium term. Consistent with this view, it’s likely that global economies ‘reboot’ supported by an easing in restrictions on movement, a rise in consumption (particularly within service... Read more continue reading

The worry list for shares – how worrying are they?

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Key points It’s still too early to say that the pull back in share markets is over. Some of the worries around US fiscal policy and politics, China, global supply constraints and central banks likely have further to run and could see the correction go further. Historically the main driver of whether we see a... Read more continue reading

Vacancy rates remain steady in September

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SQM Research has revealed national residential property rental vacancy rates rose to just 1.7% over the month of September 2021. Vacancy rates remained largely steady over the month of September, albeit remaining in favour of landlords for most capital cities with the exception of Melbourne and inner Sydney. Vacancy Rates The total number of vacancies... Read more continue reading

Weekly economic and market update – week ending 8 October, 2021

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Investment markets and key developments Global shares mostly rose over the last week as the US debt ceiling was pushed out to December and there was some easing in concerns regarding the European energy crunch. The positive global lead saw Australian shares rebound led by energy, utility, financial and material shares. Consistent with a bit... Read more continue reading

RBA Board maintains settings

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There were no real surprises from the RBA Board meeting today with the Governor’s Statement reaffirming that the Board is sticking with the settings outlined in September. Today’s statement preserves the RBA’s cautious approach to the withdrawal of historically high levels of monetary stimulus despite some the cautious optimism attaching to the ability of the... Read more continue reading

Weekly economic and market update – week ending 1 October, 2021

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Investment markets & key developments Global shares fell over the past week amidst a long worry list including the US debt ceiling, the impact of power shortages and rising bond yields. Despite a bounce in US shares on Friday helped by promising reports regarding a covid treatment pill, for the week US shares fell -2.2%,... Read more continue reading

Bond yields on the rise: implications for multi asset portfolio construction

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Central banks sticking to a benign inflation view. Bond markets are nervous but accepting…for the time being Key central bank chiefs speaking overnight at the ECB virtual Sintra Conference (the ECB version of Jackson Hole) maintained their recent narrative around inflation being “transitory”.  Fed Chair Powell had said earlier this week that supply chain constraints... Read more continue reading

Why is Australian housing so expensive and what can be done to improve housing affordability?

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Key points The key drivers of poor housing affordability and high household debt levels in Australia have been low rates and poor housing supply. Macro prudential controls to slow home lending now look imminent. But this is just a cyclical measure. More fundamental measures to improve housing affordability need to focus on boosting housing supply... Read more continue reading