Why are Australian shares lagging? Will it continue?

Key points Australian shares have disappointingly underperformed traditional global shares over the last year on the back of monetary tightening, worries about a housing bubble, the strong $A and Chinese tightening. Many of these concerns should be largely factored in & we see better returns this year, but some linger so it is too early […]

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Investor Signposts: Week Beginning December 19 2010

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The big picture One of the biggest furphies in 2009 was the claim that Australia had a ‘bubble’ in the housing market. It didn’t and still doesn’t but to some extent you can understand where some commentators were coming from with the claims. In Europe and the US, home prices generally tanked in 2009 but […]

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Big issues for 2011

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Has consumer spending fundamentally changed? Is the US economy about to take off? Will China continue to dominate? Will the Aussie dollar be stronger for longer? How high will interest rates go? Is there a housing bubble? What we will be the impact of climate change policies? Will inflation or deflation rule? How long before […]

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Australian housing – is it a bubble? What’s the risk?

Key points Australian housing is not in a bubble but it is very overvalued, and combined with high debt levels leaves Australian households vulnerable should anything significantly threaten house prices. It is a reason for the RBA to tread carefully in raising interest rates. Poor and worsening affordability will likely lead to soft house prices […]

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China boom or bust or neither?

Key points Further tightening in China is likely to ensure that inflation expectations remain under control and to mop up capital inflows flowing from US quantitative easing and Chinese resistance to a stronger Renminbi. However, with activity indicators having calmed down after last year’s growth rebound and non-food inflation under control, further tightening should be […]

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PIMCO forecasts positive outlook for Australia: quality RMBS stand out as key investment opportunity

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Australia has a positive investment outlook with flexible economic conditions and a clean banking sector Australian residential mortgage backed securities offer attractive relative value Claims that Australia is in a housing bubble are misplaced The world’s largest bond manager, PIMCO, has forecast a positive investment outlook for Australia, due to its fiscal and monetary policy […]

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Top Five Questions Investors Ask

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The GFC and subsequent volatility has increased the number of market presentations my team and I have been asked to do for the clients of financial planners. I thought you’d find it useful if I shared with you the Top Five Most Asked Questions from these presentations. Is the World about to collapse due to […]

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Bubble trouble – the next global asset bubble

Key points Asset bubbles are a fact of life and flow from human nature which has a strong tendency to jump on to popular fads. There is a long history of new bubbles forming from the ashes of the last burst bubble – and this time around is unlikely to be any different. Easy global […]

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