Move over Macron: Italy could boost European stocks and sink the Euro

Despite the election of political centrist Emanuel Macron as French President, European investors would be wrong to conclude that threats to the sustainability of the Euro have now passed.  Indeed, a major new threat looms on the horizon – Italian elections.  Along with the prospect of higher US interest rates, this threat suggests the Euro

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Bond markets await central bank rationality

One of the more remarkable features of global financial markets in 2017 so far has been the failure of long-term bond yields to rise all that much, even though global growth and equity markets have improved.  This appears to largely reflect market confidence that central banks will retain extraordinary monetary stimulus, even in the face

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Australian ETF Review – April 2017

New products, record FuM. The Australian ETF industry recorded another strong month of growth, with total industry FuM at the end of April hitting a new high of $28.3B.  Growth was relatively evenly split between new inflows (representing 43% or ~$400m) and market value appreciation. Flows were a mirror of last month, with largest inflows into

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Fundamental Indexing: active management performance with index fees?

The case for passive investing is often couched in terms of the inability of active managers to “beat the market”, with the market in turn usually defined as a capitalisation weighted equity index such as the S&P/ASX 200. Yet as this note will demonstrate, using an alternative approach to passive indexing can potentially be used

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U.S Market Outlook: back to 2004?

Amid the geopolitical concerns simmering across the globe, the upcoming United States earnings reporting season has received less than usual attention. That’s a shame because early indications suggest corporate earnings are travelling reasonably well.  In fact, despite high valuations, US stocks could keep rising if earnings continue to grow – as seen, for example, between

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