There appears much confusion in markets following changed language by the US Federal Reserve after the December FOMC meeting. The Fed’s latest statement dropped reference to keeping interest rates on hold for a “considerable time” following the end of its quantitative easing program in October, and instead suggested it “can be patient in beginning to
With strong growth in the number of self-managed super fund and other self-directed investors wanting to make their own investments, the popularity of ASX-traded investments – such as exchange traded products (ETPs) and listed investment companies (LICs) is clearly on the rise. As at end November, there were 64 LICs listed on the ASX, with
The major development over the month of November was the sharp drop in commodity prices which caused the A$ to fall and the local equity market to underperform globally. On the other hand, global equity markets rose strongly, reflecting the strength in the US economy and hopes that further central bank policy stimulus will help
The Australian exchange traded fund market surpassed $14 billion in funds under management in November, driven by strong new money flows and growth in global equity markets. 60% of industry growth over the month came from new inflows, which totaled around $600 million. Product development activity also helped to stimulate growth, as three new funds were
The Australian dollar has had a notable fall in recent months – and, in fact, these falls could start to help economic growth by making trade-exposed sectors more price competitive. But while any such benefit associated with falls may be true at the margin, this is only a partial analysis of the overall effect on
With the United States Federal Reserve having officially ended its quantitative easing program, thoughts naturally turn to the outlook for US interest rates. When will the Fed start raising the Federal funds rate from current near-zero levels, and what will this do to share prices?
The major development over the past month was the stunning rebound in the Australian equity market, after the previous month’s slump – especially by high yielding sectors which were helped by reduced fears of an earlier than expected lift in US official interest rates. Dragged down by Europe, global equities underperformed in both hedged and
With the Australian dollar seemingly on a downward trend, investor interest in gaining offshore investment exposure is growing. In our recent Portfolio Construction post, we looked at some strategies to implement ‘risk-on/risk-off’ for domestic equities exposures. In this post, we look at how currency can be used to de-risk your international share allocations.
Australia’s economy has fared better than most post-GFC, buoyed primarily by the tail end of the resource boom, solid population growth and a strong financial sector. That said, with the resource boom maturing, and the workforce ageing, the Australian economy has slowed – and is likely to grow at a slower pace in coming years
In a previous post for our Portfolio Construction series we explored the concept of a ‘risk-on/risk-off’ investment strategy and dynamic asset allocation (DAA) as a way to attempt to position portfolios for markets with different levels of perceived risk. In this post, we look at some specific BetaShares tools that investors have used as part of