Quantitative Tightening (QT) with Hunt Economics

April 14, 2022

We discuss Quantitative Tightening with our colleagues from Hunt Economics. With indicators continuing to show the risk of increasing inflation, central banks are looking at strategies to curb the inflation risk.

This post is also available as a podcast on:



Join InvestSense Director Jonathan Ramsay and Andrew Hunt of Hunt Economics as they discuss the mechanics of quantitive tightening, and what this means for economies, markets, and households.

In this episode, we cover why equity markets reacted to the Fed minutes last week, and dissect the widely-anticipated quantitative tightening and how will it affect markets, the economy and households.

We discuss the role of the banking system and what all this means for credit trends and give a playbook for 2022 - government bonds vs credit, US vs Equities vs the rest of the world, growth vs defensive assets.

Charts referenced in the podcast:

Rate expectations push markets down for the month

August 2, 2024

Markets were fairly soft all week, but the real action happened just after the European close when Gazprom announced it would not reopen the Nord Stream 1 pipeline, which had been closed for maintenance due to ‘malfunctions’.

Diamonds in the rough with Southeastern Asset Management

August 2, 2024

In this week’s video we discuss selected ‘deep value opportunities’ with a traditional value manager from Southeastern Asset Management

Are we there yet, or is is just another short squeeze?

August 2, 2024

Markets were up last week, led by the US which finished up 3% having been down 2% earlier in the week. Other markets were less volatile but were mostly also in positive territory for the week.

Portfolio Construction: A Uniquely Australian Perspective

August 2, 2024

Inflation - Flash Update

August 2, 2024

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.

Category placeholder

Markets ended up on the back foot after an unexpected U-turn by Fed Chair Jerome Powell on inflation. Or was it so unexpected?

August 2, 2024

Markets ended up on the back foot after an unexpected U-turn by Fed Chair Jerome Powell on inflation. The large local miners and banks fared much better but Australian market was dragged down by quite big reactions to news from a handful of stocks.

Category placeholder

The Santa Rally, Finally

August 2, 2024

After a volatile start to the month the traditional Santa Rally kicked in during the penultimate week of the year in the lead up to Christmas Day (and has continued overseas in the overseas markets that have been trading since then).

Category placeholder

2021 In Review

August 2, 2024

It turned out to be another banner year for markets, the third straight one in a row, taking most markets, and especially US markets, to all time highs.

Category placeholder

Tech stocks on the back foot, interest rate expectations rise

August 2, 2024

It turned out to be another banner year for markets, the third straight one in a row, taking most markets, and especially US markets, to all time highs.

Category placeholder

Interest rates expectations continue to set the tone

August 2, 2024

Markets were more settled last week, but interest rate expectations continued to set the tone with the US market proving especially sensitive.

Category placeholder

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.

Category Placeholder

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.

Category Placeholder

Recession fears build, yet equity markets end the week higher

August 2, 2024

Fears of a US recession later this year gathered pace last week and the US equity market jumped by almost 7% and the Nasdaq was up some 9%.

Category Placeholder

Inflation - Flash Update

August 2, 2024

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.

Category Placeholder

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.

Category Placeholder

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.

Category Placeholder

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.

Category Placeholder

Helping your clients assess the climate impact of their Portfolio

August 2, 2024

Nathan Fradley explains how the ethosesg technology can help you assess and design an ethical portfolio that aligns to an investor’s personal values.

Category Placeholder

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.

Category Placeholder

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.

Category Placeholder

Bad news equals good news

August 2, 2024

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.

Category Placeholder

‘Buy the dip’ opportunism start surfacing

August 2, 2024

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.

Category Placeholder

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%.

Category Placeholder

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...

Quantitative Tightening (QT) with Hunt Economics

Rate expectations push markets down for the month

Diamonds in the rough with Southeastern Asset Management

Are we there yet, or is is just another short squeeze?

Portfolio Construction: A Uniquely Australian Perspective

Inflation - Flash Update

Markets face biggest one day drop since March 2020

Markets ended up on the back foot after an unexpected U-turn by Fed Chair Jerome Powell on inflation. Or was it so unexpected?

The Santa Rally, Finally

2021 In Review

Tech stocks on the back foot, interest rate expectations rise

Interest rates expectations continue to set the tone

Markets slid again last week, with a concentrated sell off in US tech

Markets slid again last week, with a concentrated sell off in US tech

Recession fears build, yet equity markets end the week higher

Inflation - Flash Update

Interest rate sensitivity persists into the new year

Strong start to the year continues despite recession concerns

Equities turbulent but resilient as interest rates rise

Helping your clients assess the climate impact of their Portfolio

Carbon credits and investing – is it the outcome we expect?

Better World makes a difference with investment in renewables

Bad news equals good news

‘Buy the dip’ opportunism start surfacing

US momentarily dips into official bear market territory

How Mark Lewin saved 13 hours a week with Managed Accounts

InvestSense insights, delivered straight to your inbox.

Get the latest industry news

Get the latest industry news

Get the latest industry news