Monthly Macro with Jonathan Tolub and Hunt Economics: A deeper dive into the three scenarios the market is cycling through: Goldilocks, Recession and Entrenched Inflation
Equity markets declined over the past week, with the S&P/ASX 300 down -3.3% and the MSCI World Ex Australia index falling 2.7% in local terms, but only -0.9% in Australian Dollar terms for the unhedged Australian investor. Most of the falls happened overnight as a higher-than-expected GDP number put upward pressure on short-term rates.
October's Financial Flux: A Precursor to Change in Investor Fortunes
August 2, 2024
During October, global markets experienced a downturn amidst inflation worries and the threat of rising interest rates, leading to a 2.7% fall in global equities and a 3.8% drop in Australian stocks, with tech sectors and major companies like Nvidia and Tesla taking notable hits. Despite the gloom, the materials sector saw gains, and gold shone brightly as a safe haven, appreciating by 7.3%.
Australian Dollar Slides on Divergent RBA and Fed Policy Messaging
August 2, 2024
Most markets were up slightly this week as the US tech stocks led the way for most of the week before falling back overnight as Jerome Powell struck a more hawkish tone, implying that while rates in the US may be near their peak they might have to stay there for a while longer.
Stocks continued their strong November rally this week, as hopes grew that inflation has peaked and the Fed is nearing the end of its rate hiking cycle. The S&P 500 rose 1.9% on Tuesday following the cooler than expected US CPI print, bringing its gains for the month so far to 7%.
It has seemed all week that, in quiet US holiday trading, the only thing moving markets was the ‘will they/won’t they’ speculation about the future role of OpenAI’s CEO Sam Altman.
Markets have been resting while the US sleeps and gyrating when US markets open. Most of the world market is listed in the US but the difference in volatility between the US has become ever more pronounced in recent weeks.
Value and growth in emerging markets with Trinetra - the best of both worlds?
August 2, 2024
Jonathan Ramsay is joined by Trinetra Investment Management's Tassos Stassopoulos to discuss value and growth in emerging markets and whether the asset class offers investors the "best of both worlds."
There were very few major asset classes that have offered positive returns over the year with cash being one of the few places to hide and perhaps gold.
The most anticipated economic release of the week (and of the month) turned out to be simultaneously shocking and monotonous. The US Consumer Price Index for June came out at 9.1% Year-on-Year increase, much higher than the 8.8% growth predicted by economists.
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...
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