Market Insights Archives | BetaShares

Buy the dip

Global markets

What can stop the global equity market? Exhaustion? Global investors worried over the weekend before last about the spread of the delta COVID variant and sold down stocks last Monday. By Tuesday, however, they’d changed their minds and a ‘buy the dip’ mentality re-emerged. The S&P 500 rose 2% over the week,

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How many lives have been saved by Australia's approach to COVID?

How many lives have been saved by Australia’s approach to COVID?

By global standards, Australia has so far managed to contain the COVID outbreak fairly well. Given that debate still rages over whether rolling lockdowns and border closures have been justified on a cost-benefit analysis, I though it might be useful to at least gauge what we have potentially achieved by our containment efforts to date.

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Fed fear

Week in review

Equities buckled under Fed tightening fears. The Fed policy meeting was of course the market highlight last week, particularly the increase in the number of Fed members who are now penciling in a rate hike in 2023 according to the ‘dot plot’ chart. Just over half (13 of 18) now see rate increases starting in 2023,

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Buy the fact

Week in review

Global markets shrugged off a higher than expected U.S. consumer price index (CPI) result, with U.S. 10-year bond yields edging lower and equities pushing higher. This likely reflected an element of “sell the rumour, buy the fact”, given fears of a high inflation outcome had lingered for a while.

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CPI taper test

Global markets
Global equities ended last week up modestly, and appear to be back in the “bad news is good news” frame of mind. Stronger than expected U.S. manufacturing and service sector indices set markets back early last week, though stocks then rallied strongly on Friday following a (still strong, but) weaker than expected U.S.

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Relaxed & comfortable

Global markets
Global equities managed to post positive returns last week – after two weekly declines – even in the face of a modestly higher than expected U.S. consumer price inflation result. Indeed, annual growth in the U.S. core private consumption expenditure deflator (PCED) came in at 3.1% in April, compared to the market estimate of 2.9% –

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Crypto crash

Global markets
Overall it was a week of further consolidation for global equity markets, with the S&P 500 down modestly for the second week in a row. With real activity data remaining unquestionably strong (the U.S. Markit composite PMI index hit a record 68.1 in May), market concern is focused on the degree to which current price/commodity pressures persist,

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Desperately seeking yield in a low-yield world: the case for bank hybrids

Desperately seeking income in a low-yield world: the case for bank hybrids

Reading time: 3 minutes
Hybrid securities have tended to offer attractive franked income returns for usually only moderate levels of capital volatility. As such, and especially in these times of very low cash and fixed-income returns, they offer a potentially useful additional source of income and diversification in many investor portfolios.

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Death and taxes

Global markets
Concern over rising COVID cases in hotspots such as Japan, Brazil and India set global equities back last week as did talk of a proposed hike in the U.S. capital gains tax for high-income earners. The end result was a small weekly pullback in stocks after four weekly gains,

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