In light of the recent inflation data coming out of the US, we dive in to why the market is so upset about a 0.1% increase in prices, and what this means from an Australian investor's perspective.
Markets face biggest one day drop since March 2020
August 2, 2024
Markets suffered their biggest one day fall since the height of the pandemic provoked market crisis in March 2020, with the US Nasdaq down 5.5% and the S&P 500 down 4.3% after the latest US inflation numbers showed core inflation still on the rise even though energy prices have been on the wane.
Will the Fed's continued tightening cause something to break?
August 2, 2024
Markets continued to fall last week, touching the lows seen in mid-June and leading many to question whether the buy on the dip trade was finally dead. Not coincidentally, long-term bond yields also pushed through the highs seen in June, as the US Fed raised rates another 0.75% and Jerome Powell reiterated the Fed’s commitment to fighting inflation via interest rate policy.
Weak economic data, banking turmoil, and strong earnings results
August 2, 2024
After a relatively quiet few weeks the financial newswires have sprung back into life with positive US earnings surprises, another distressed US bank and an Australian inflation print that appears to have something for everyone.
Buffet Effect Boosts Japanese Market, US Consumer Remains Strong
August 2, 2024
April was a muddle through month where most markets ended where they started, some having moved about a bit more than others. The Nasdaq, and by extension the US market, continued to be the lightning rod for risk, but ended the month just in positive territory.
As John Wayne said in The Lucky Texan (1934), “It’s quiet out there. Ain’t natural”. That seems to sum up what many traders and managers feel about markets at the moment, as the noisy post-COVID data environment continues to confuse.
Markets mostly flat aside from Japan and tech titans
August 2, 2024
Nothing continued to happen last week (and the week before that, for that matter). Apart from two outlying and positive market moves, that is, the Nasdaq went up and so did Japanese equities, for reasons that couldn’t be more different.
Carbon credits and investing – is it the outcome we expect?
August 2, 2024
ETFs that invest in carbon credits are now available. Why should we assume that their price will go up over time? And does buying a carbon credit ETF actually contribute positively to emissions reduction? Will it actually generate the outcome investors are expecting? This article explores the issues around investing in carbon credits.
Better World makes a difference with investment in renewables
August 2, 2024
There are many direct assets and funds that contribute positively to climate action within the InvestSense Better World Portfolios. Meridian Energy is one of the stand-out direct assets in the portfolio with a climate energy focus.
In recent years professional investors have got increasingly used to the fact that good news is bad news for markets because higher interest rates are likely to be necessary, and of course vice-versa. However, last week the effect was stronger than ever and stocks rallied mid-week amidst reports of widespread lay-offs and expectations of a weak US jobs report.
The US market finally market caught a bid last week. Early in the week the market was down few percent after an earnings miss by ad dependent social media platform Snap (of Snapchat fame) combined with weak guidance raised more doubts about the economy and economic resilience of tech companies.
US momentarily dips into official bear market territory
August 2, 2024
The seventh negative week in a row for the US sent it briefly into official bear market territory before it recovered slightly late on Friday. The world’s largest stocks (Apple, Microsoft Amazon and Google) are all down 25%.
How Mark Lewin saved 13 hours a week with Managed Accounts
August 2, 2024
Mark Lewin was a financial planner, but is now the Director of Back Office Heros. In his planning business he gained significant efficiencies by recommending and implementing managed accounts for his clients. He tells us how...
