Key points are as follows… A more dovish Fed, better Australian economic data, higher commodity prices and the reversal of high levels of shorts have seen the $A gain 12% from its January low. It could hit $US0.80 in the short term. However, the bounce is unlikely to be sustained with a continuation of the…
Kajanga Kulatunga – Portfolio Specialist, NAB Asset Management Investment markets can be unpredictable. Just when you get used to enjoying a prolonged period of strong returns, suddenly you can be faced with a wild share market rollercoaster and begin wondering whether you should get off. Content Investment markets can be unpredictable. Just when you get…
Highlights; Global equity markets continued to correct through February but stage an early March recovery Oil prices staged a strong recovery from mid-February – up 37% China economic data continued to consolidate and targets 6.5% minimum growth US economic data continued to improve Marginally weaker Eurozone economic data heightens the likelihood of further quantitative easing…
Key points are as follows The Australian economy grew a surprisingly strong 3% through 2015, as non-mining activity and export volumes helped offset the slump in mining investment. Growth is likely to slip back to around 2.5% this year, so a further RBA rate cut is still likely, albeit it’s a close call. Low interest…
Following the slide into bear market territory (defined as a 20% or great fall) by the Australian ASX 200 index last week, the attached note takes a look at past Australian bear markets since 1900 and what determines whether a bear market is mild as opposed to long and deep. The key points are as…
Oil prices are down more than 70% from their levels two years ago driven by a combination of a surge in supply relative to demand and a rise in the value of the $US. Further weakness down to $US20 / barrel is possible, but we are getting closer to the point where supply slows. So…
2016 should end much better than it has started off for investors, ultimately providing ok investment returns, but expect a continued volatile ride. · Watch the Fed, the $US, global business conditions indicators, China and business confidence in Australia. · The investment cycle still favours growth assets over cash and bonds – despite all the…
Highlights; Global equity markets correct in December – although Australia was a strong performer Oil prices continue to weaken China stock market volatility, and weaker economic data, creates deflationary fears US economic data continues to point to an improved recovery. US Federal Reserve commenced the process of normalisation of interest rates in December. Eurozone economic…
John Owen, Portfolio Specialist, discusses subdued share markets, the impact of monetary policy and how MLC’s portfolios are positioned. In the latest update, John reviews events in markets during December. He discusses: share markets concluding the year on a subdued note, with most recording negative returns in December how monetary policy remained an important influence…
As 2015 draws to a close, it’s time to review what’s happened in investment markets this year and look ahead to 2016. Investors have enjoyed another year of positive returns, despite considerable midyear volatility. However, the returns shown in Table 1 are below those that were reported in 2014, in some cases materially lower. Read…