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:

Weekly Market Update

Equity Markets Rally on Rate Cut Hopes and Positive Economic Data

August 28, 2024

Weekly Market Update

Financial Markets Grapple with Implications of Fed's Shift in Signals

August 28, 2024

Video of the week

Looking around the corner on China, Australia and the US with Economist Andrew Hunt

August 28, 2024

Weekly Market Update

US Market Settle as Australian Reporting Takes Centre Stage

August 15, 2024

Video of the week

Preview of the Portfolio Construction Forum Strategy Summit 2024 with Jonathan Ramsay & Jonathan Tolub

August 13, 2024

Join Us at the Portfolio Construction Forum’s Strategy Summit in Sydney

Weekly Market Update

Market Turbulence Following Weak U.S. Jobs Report and Surprise Rate Hikes in Japan

August 13, 2024

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

The year of moderation

August 2, 2024

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.

Category placeholder

Markets think we're there - but are we?

August 2, 2024

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...

Category placeholder

Interest rate nerves as RBA walks a tightrope

August 2, 2024

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.

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

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.

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

Category Placeholder

Equities turbulent but resilient as interest rates rise

August 2, 2024

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

Equity Markets Rally on Rate Cut Hopes and Positive Economic Data

Financial Markets Grapple with Implications of Fed's Shift in Signals

Looking around the corner on China, Australia and the US with Economist Andrew Hunt

US Market Settle as Australian Reporting Takes Centre Stage

Preview of the Portfolio Construction Forum Strategy Summit 2024 with Jonathan Ramsay & Jonathan Tolub

Market Turbulence Following Weak U.S. Jobs Report and Surprise Rate Hikes in Japan

Strong start to the year continues despite recession concerns

The year of moderation

Markets think we're there - but are we?

Interest rate nerves as RBA walks a tightrope

Equities turbulent but resilient as interest rates rise

Markets Up Despite Rising Bond Yields and Inflationary Data

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