The recent surge in US bonds yields has caught the attention of investors worldwide and forced a re-think over the equity outlook. This note suggests, however, that higher rates need not kill the bull market anytime soon, provided corporate earnings remain upbeat and inflation contained. Market comes around to the Fed’s thinking As evident in
Ask almost anyone young or old in the western world if they are familiar with Amazon, Google, or Facebook and you would most likely get a resounding “yes!” However, if I were to ask those same people if they were familiar with Tencent, the answer would probably be “Ten who?” So, who exactly is Tencent
Reasonable valuations and good earnings outlook should assist global equities in the face of higher rates. While technology remains dominant in global markets, Japanese equities enjoyed a standout performance in September. Australian equities eased back during the month, even though forward earnings ticked a little higher – as a lift in bond yields helped push
Although American based tech giants – such as Google, Facebook and Amazon – are already household names, it may surprise some investors to know that Asia has technologically leapfrogged the U.S. in several respects and has many successful tech megastars of its own. As this note will demonstrate, these Asian tech tigers – exposure to
Australian investors have likely recently felt the effects of market volatility, which has put downward pressure on many large cap Australian companies that offer relatively high yields. For investors with a concentrated single stock portfolio, this recent performance trend highlights the danger of relying on a small number of high yield stocks for retirement portfolios.
Thanks to rapid technological advances, the global robotics and artificial intelligence (A.I.) sectors stand poised to significantly boost global economic productivity and redress worker shortages caused by population ageing over coming decades. As this note will demonstrate, moreover, the robot revolution also offers the growth potential to reward investors who tap into this emerging global
One of the most common questions I get asked on ETFs relates to liquidity, largely driven by the common misconception that ETFs are somehow illiquid due to the fact that ‘on-screen’ liquidity at times appears limited (particularly compared to popular shares). Even though we have dealt with this area a number of times in other
Industry Breaks the $40B Barrier The Australian ETF industry grew very strongly in August reaching a new record high of $41.5B. The industry grew a rapid 3.7% in the month ($1.5B), 2/3 of which was driven by asset appreciation particularly in the U.S. sharemarket. Read on for details of the month in ETFs.
With the US labour market tight and inflation starting to lift, one similar historical episode that has attracted investor attention, and which may be instructive for today’s market, relates to the late 1960s. At that time US wage and price inflation started to lift quite quickly, which eventually led to higher interest rates and a
Global equities pushed higher last month reflecting steady bond yields, reasonable valuations and – most importantly – continued strength in earnings. Technology remains flavour of the month, whereas gold exposures are least favoured. Market Trends – September 2018 Update