Oil Slick

Global Review & Outlook It was another modest week for global equities overall as a sharp drop in oil prices took the wind out of the energy sector. Despite OPEC’s extended production cut agreement, rising supply – not only in the US but Nigeria and Libya also – continue to keep the market awash in

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A Cleansing Pause

Global Review & Outlook Global equities continued to consolidate last week in the absence of bullish new news. Indeed, the US Fed’s widely expected decision to lift rates barely made a ripple, with both bond yields, the $US and equities taking the decision in their stride. With the Fed now out of the picture for

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Active vs passive investment

Active v Passive: is passive investment outperformance merely cyclical?

A claim currently receiving renewed attention in the long-contested active versus passive investment debate is that the apparent outperformance of passive investment strategies is largely cyclical, and usually only takes place in the late stages of a bull market.  This note, however, argues that while there may well be an element of cyclicality in passive

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Technology boom

Global Market Outlook: June 2017 – Tech boom

The MSCI All-Country World Equity Total Return Index rose a further 1.4% in May, after a 1.3% gain in April, to make it seven consecutive monthly increases. Helped by solid underlying earnings growth, declining bond yields and still reasonable price-earnings valuations, the tech-heavy Nasdaq-100 Index posted particularly strong gains. The outlook for equity markets generally

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Goldilocks Economy

  Global Review & Outlook US stocks pushed further into record territory last week as the weaker-than-expected May payrolls report (employment +138k vs. market +185k) portrayed an economy that is neither too hot nor too cold- as Goldilocks might say, it’s  just right.  Importantly, although the unemployment rate edged lower to 4.3%, average hourly earnings

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Geographic lending restrictions could provide scope for lower interest rates

Contrary to the hopes of both the Reserve Bank of Australia and the Federal Treasury, economic growth is off to a bad start in 2017 so far.  Importantly, however, the recent Federal Budget included new powers for the Australian Prudential Regulation Authority to impose geographic-based lending restrictions.  If used, these new restrictions could allow scope

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While Trump is away…

Global Review & Outlook While Trump’s away markets will play.  The S&P 500 touched a new record high last week, as attention re-focused on the otherwise encouraging market backdrop following the previous week’s political uncertainty.    Critically, the Fed minutes suggested that while a June rate hike remained more likely than not, the market was

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The Trump Fade

Global Review and Outlook  Trump troubles dominated markets last week and contributed to further weakness in stocks, bond yields and the $US – and a rebound in gold.  Specifically, the appointment of a special prosecutor to investigate Russia-Trump administration links suggests this saga will drag on further. What’s more, there are now revelations Trump may

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