INVESTMENT UPDATES

Weekly-investment-update-image-1

November 23, 2020

WEEKLY INVESTMENT UPDATE

Key points:

  • The continued rise of American virus cases and the reimposition of restrictions are holding back the global equity market.
  • Nevertheless, the positive announcements on vaccines and treatments continue to arrive. Underlying trends in global growth remain positive. Global cyclicals and smaller companies should benefit as investors look past the northern hemisphere winter.
  • In other news, Brexit negotiations continue. The market is pricing in some form of agreement which, if not concluded, could still prove disruptive.
Read more...
Investment 6 - shutterstock_479537845 499 x 278

November 16, 2020

WEEKLY INVESTMENT UPDATE

Key points:

  • Despite a rapid rise in US coronavirus infections last week, investors were focussed on the fantastic news that an effective coronavirus vaccine may soon be available. 
  • The news suggests that the economic recovery will happen much faster in 2021, but other successful vaccines and therapeutics may also soon follow, strengthening the recovery further. Markets were understandably “risk-on”, with substantial sector rotation also visible. 
  • Last week, the Federal government announced that the coronavirus JobSeeker Supplement, will be extended through to the end of March 2021 but reduced to $150 per fortnight
Read more...
Investment 5 shutterstock_93500992 499 x 278

November 09, 2020

WEEKLY INVESTMENT UPDATE

Key points:

  • Joe Biden has claimed the presidency without a Republican concession. However, Democrats seem unlikely to prevail in the Senate, making it hard to pass tax and healthcare reform, as well as a larger fiscal stimulus package. Global bond yields fell as the “blue wave” trade unwound. Every asset class posted positive returns as a result.
  • Australian assets appear more and more attractive relative to global counterparts as virus cases rise and lockdown measures are reimposed in the northern hemisphere.
  • The RBA cut interest rates to an historic low of 0.10% and launched A$100bn in bond purchases last week. So far, the Australian dollar has only strengthened.

Read more...

Weekly-investment-update-image-3

November 03, 2020

VIEWPOINT: US ELECTION

 

Investors often place too much importance on election results. After the outcome is known, it is not unusual for markets to return to the growth trends before the vote. However, the current US election seems like it might be a little different.

In the report attached, we examine some of the main policy differences and how asset prices may be affected.

 

 

 

 

Read more...

Weekly-investment-update-image-2

November 02, 2020

WEEKLY INVESTMENT UPDATE

Key points:

  • Global equities experienced the worst week since March last week.
  • Records of rising coronavirus cases and renewed lockdowns in the northern hemisphere weighed on stock markets. Australia, in contrast, is seeing much better coronavirus outcomes and state restrictions on movements being eased.
  • The RBA is expected to ease monetary policy further on Tuesday. The Federal Reserve will also meet, with no change in policy expected.
  • Given the polls, investors are increasingly pricing a Democrat win in the US elections this week.
Read more...
Weekly-investment-update-image-4

October 26, 2020

WEEKLY INVESTMENT UPDATE

Key points:

  • An improved debate performance from President Trump seems unlikely to significantly raise his chances of re-election. Markets are pricing higher US long-term inflation prospects on the back of a possible Democrat clean sweep, increasing the chances of large-scale fiscal stimulus. Infrastructure and global real estate were the only asset classes to advance last week.
  • Daily cases of coronavirus set an unfortunate new record in the US and globally on Friday. On Sunday, the Victorian Premier did not ease local restrictions as hoped due to the outbreak in North Melbourne.
  • The week ahead sees Australian Q3 inflation numbers published. The market is pricing a very high chance of easing from the RBA the following Tuesday.

Read more...