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.
Investing in Japan with Platinum Asset Management: Compelling market valuation, favourable trends and hidden opportunities.
August 2, 2024
Jonathan Ramsay and Jamie Halse, Japan Fund Portfolio Manager from Platinum Asset Management, discuss the opportunities for investment in Japan. Jamie believes that now is the time to look for investment opportunities in Japan.
Strong start to the year continues despite recession concerns
August 2, 2024
As the world’s elite gathered in a snowless Davos, markets focused on much more immediate concerns, starting with the continuing wave of layoffs in corporate America. Amazon, Microsoft, Alphabet (Google’s parent company), Salesforce and Goldman Sachs, among others, took turns to announce staff cuts. It would appear boardrooms and CEOs are lending some credence to the possibility of a recession in 2023.
Markets ended up a few percent last week, but only after a mid-week earnings scare triggered by a flat result and weak guidance from Microsoft. This week markets have been a little volatile but flat overall, leaving most markets up 5-10% for January.
Markets think ‘we’re there’ in the global fight against inflation – but are we? Last week the RBA also proclaimed confidently that local inflation had peaked, so you might think it’s all downhill from here...
Markets were again on the back foot last week. However, despite a fair amount of volatility, most markets were flat or only down by 1% or so. There seems to be an ongoing battle of wills between markets and the various central banks who are keen to talk down markets, lest the wealth effects of a buoyant market detract from the ongoing fight against inflation.
Equities turbulent but resilient as interest rates rise
August 2, 2024
Last week the S&P 500 traded in a 3% range, having done a 2% round trip on Thursday, followed by a 3% fall on Friday after the inflation data release and then another almost 2% round trip yesterday. Emerging markets were the worst performing, down 4% for the week. Taking a step back though, most equity markets haven’t given back that much of their gains from January, while Europe and the Nasdaq remain up 10% for the year.
Markets Up Despite Rising Bond Yields and Inflationary Data
August 2, 2024
Bond yields were up again last week but so were equity markets which was a nice change that lead to the first up week in the last four. In fact, while markets have been on the back foot recently, most commentators have been pleasantly surprised that they haven’t reacted too badly to an apparent wind shift in the gusty inflationary data.
Markets slid again last week, with a concentrated sell off in US tech
August 2, 2024
Markets slid again last week but the selling was concentrated in US tech, most of which is down 10% or so this year. Much of last week’s selling occurred in the last 2 sessions of the week.
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.
Interest rate sensitivity persists into the new year
August 2, 2024
During the last few weeks, the prospect of rising interest rate expectations continued to grip markets, as the soft landing/rapid disinflation thesis was tested.
Strong start to the year continues despite recession concerns
August 2, 2024
As the world’s elite gathered in a snowless Davos, markets focused on much more immediate concerns, starting with the continuing wave of layoffs in corporate America. Amazon, Microsoft, Alphabet (Google’s parent company), Salesforce and Goldman Sachs, among others, took turns to announce staff cuts. It would appear boardrooms and CEOs are lending some credence to the possibility of a recession in 2023.
Equities turbulent but resilient as interest rates rise
August 2, 2024
Last week the S&P 500 traded in a 3% range, having done a 2% round trip on Thursday, followed by a 3% fall on Friday after the inflation data release and then another almost 2% round trip yesterday. Emerging markets were the worst performing, down 4% for the week. Taking a step back though, most equity markets haven’t given back that much of their gains from January, while Europe and the Nasdaq remain up 10% for the year.
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...