Five constraints on medium term investment returns

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Key points Five megatrends suggest higher medium-term inflation pressures & lower economic growth than pre-pandemic. These are: a move away from economic rationalist policies; the reversal of globalisation; rising geopolitical... Read more continue reading

Weekly economic and market update – week ending 20 October, 2023

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Investment markets and key developments Global share markets fell over the last week on worries about an escalation of the war in Israel that would disrupt oil supplies and as... Read more continue reading

RBA: exercising the hawk’s talons! 

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In refreshing contrast to her predecessors and peers, new Reserve Bank of Australia (RBA) Governor, Michele Bullock, has an endearingly plain-spoken and direct approach.  That was on display this week.... Read more continue reading

Weekly economic and market update – week ending 13 October 2023

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Investment markets and key developments Global share markets were mixed over the last week. US shares rose as Fed officials sounded less hawkish before higher than expected inflation and nervousness... Read more continue reading

“Sticky” services inflation suggests a policy rate hike remains on the Fed agenda and NAB Monthly Business Survey leaves open the prospect of further rate hikes

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“Sticky” services inflation, a still elevated core inflation result for September and a slightly higher than anticipated headline number means that a further increase in the policy rate remains on... Read more continue reading

1987 vs now – rising bond yields (and the war in Israel) and the risks for shares

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Key points The rise in bond yields has left shares offering a low risk premium over bonds leaving them at risk of more softness. The conflict in Israel has added... Read more continue reading

Consumer gloom lifts slightly

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The Westpac-Melbourne Institute Index of Consumer Sentiment rose 2.9% to 82 in October, up from 79.7 in September. Westpac Senior Economist Matthew Hassan said: “The consumer mood has improved slightly... Read more continue reading

Weekly economic and market update – week ending 6 October, 2023

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Investment markets and key developments Global share markets fell again over the last week as bond yields rose even further continuing to put pressure on share market valuations. Most Fed... Read more continue reading

RBA skips, no change from RBNZ and coming up the US September non-farm payrolls

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RBA skips, but has it stopped? As expected, the Reserve Bank of Australia Board chose to “skip” a policy rate increase when it met on Tuesday. Put simply, the “data... Read more continue reading

Weekly economic and market update – week ending 29 September, 2023

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Investment markets and key developments Global share markets fell again over the last week as bond yields rose further (with Fed Chair Powell offering no objection to rising bond yields... Read more continue reading