Too much rather than too little remains the least risky pathway for the RBA

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There were no real surprises in RBA Governor Lowe’s Statement issued following the latest RBA Board meeting. While continuing to acknowledge a more positive outlook insofar as growth and employment are concerned, the absence of any evidence of significant price or wage inflation saw the Governor again stress that the  RBA will  continue with the 

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CPD: Moore’s Law and the race for the rest of the chessboard

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Gordon Moore, the famous founder of Intel, set forth his prediction in 1965 that the number of transistors per silicon chip should double every two years. In this this paper from GSFM’s investment partner, equity income specialists Epoch Investment Partners, Moore’s Law[1] and its support of the semiconductor industry is examined. Thanks to human ingenuity

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CPD: The wealth effects of climate change

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Addressing a group of financial advisers during a recent webinar, Munro Partners CIO Nick Griffin called climate change the ‘biggest S-curve’ – or greatest investment opportunity – of his lifetime. This article from GSFM Pty Ltd explores the S-curve and climate change, and what both mean for investors. Investing is a game of winners and

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Will current Fed policy lead to inflation?

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Various key Fed spokespeople, including Chair Powell, Vice Chair Clarida and FOMC member Brainard, have all appeared to downplay nascent concerns that current Fed policy, combined with fiscal stimulus, may lead to the economy overheating and inflation. In so doing Fed speakers appeared keen to emphasise that any talk of withdrawing stimulus is a long way off.

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Structural and cyclical influences driving focus on rising inflation

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The following are some comments from Steve Miller, an adviser at GSFM, on inflation and bond yields. He also looks at the minutes from the Federal Open Market Committee (FOMC) on inflation, and upcoming data on unemployment. 1. Inflation and bond yields The sharp rise in bond yields and attendant yield curve steepening appear to

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CPD: The enduring allure and sustainability of dividends

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The recent economic downturn caused by the COVID-19 pandemic provides another example of the resiliency of dividends. As in the past, they held up better than earnings, with the most severe pressure in specific sectors. This article from equity income specialists Epoch Investment Partners, discusses the importance of dividends to any prudent capital allocation policy.

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Deliver us from COVID but lead us not to inflation

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The outlook for global and Australian markets is positive, according to GSFM and its fund manager partners Munro Partners and Tribeca Investment Partners. They say markets are supported by easy monetary conditions, ongoing fiscal support and global economies which continue on a path towards normality as COVID-19 vaccines are rolled out and the lagged impacts

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CPD: The Pandemic accelerant – digital age business strategies

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The following article is an excerpt from a white paper written by two investment experts from Epoch Investment Partners: William W. Priest, CFA — Executive Chairman, Co-CIO and Portfolio Manager Kevin Hebner, PhD — Managing Director, Global Investment Strategist. This is the second part of a series examining the impacts of COVID-19 and how this

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CPD: Three strategies to avoid unintended concentration risk

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The Australian sharemarket is structurally prone to concentration risk and many Australian investors display a home bias in their investment portfolios. In this article, GSFM outlines the issues with concentration risk and provides three strategies to avoid it. Concentration risk can be defined as the risk of amplified losses that may occur from having a

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RBA eschews further monetary stimulus – where to now?

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Not surprisingly at yesterday’s Board meeting the RBA eschewed the application of any further monetary stimulus following the announcement of a comprehensive array of measures in November. However, it reiterated that the likelihood of an uneven recovery and a concern about ongoing high unemployment and associated subdued wage growth would mean that policy settings remain

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