Market Watch
Market Watch
At its meeting today, the Board decided to maintain the current policy settings, including the targets of 10 basis points for the cash rate and the yield on the 3-year Australian Government bond, as well as the parameters of the Term Funding Facility and the government bond purchase program. The rollout of vaccines is supporting...Read More
The bonds market: a tantrum, a crash or a sell-off?
March 22, 2021
Is it a tantrum, a crash or simply a sell-off? No matter what you call it, the sharp rise in bond yields that we have witnessed so far this year has been a cause for concern for all types of investors, whether they own bonds for income, capital stability or defensiveness. To add to the...Read More
Our insights on real estate’s next opportunities
March 22, 2021
Sector outlooks shed light on real estate’s next opportunities for 2021 The investment hypothesis for Australia’s real estate sector unmasks how significantly COVID-19 and the associated lockdowns reshaped how we live, work and shop in the space of just one year. As vaccines are rolled out across the country, Australia has adjusted to a new...Read More
February’s reporting season set a strong benchmark for Australian equities for the rest of 2021, with conditions arguably more conducive to earnings growth now than they have been for many years. We think those gains will fall unevenly, however, and there are a number of unfolding dynamics that will shape the destiny of small-cap stocks...Read More
At its meeting today, the Board decided to maintain the current policy settings, including the targets of 10 basis points for the cash rate and the yield on the 3-year Australian Government bond, as well as the parameters of the Term Funding Facility and the government bond purchase program. The outlook for the global economy...Read More
Why we see opportunities in consumer-related stocks this year
February 22, 2021
We believe those who view the exceptional profit upgrades from domestic consumer-related stocks over the last few months as being extremely short-term should consider the current spending capacity – and options for spending – of the Australian consumer. We have found1 that there is a high level of spending capacity left within the domestic consumer....Read More
Our thoughts on eight key sectors as reporting season gets underway
February 22, 2021
The ASX 200 is now back to about 10% below the record 7,200 level it hit in February last year, just before the virus rocked the world. We think many sectors are in great shape after coming lean and mean out of the crisis with strong earnings momentum. Further, Australia is about six months ahead...Read More
A low interest rate environment and uncertainty present challenges for investors looking for diversified strategies to defend their portfolios in 2021. As a cyclical asset class, Australian real estate has been subjected to the full effects of the pandemic through the past 12 months, but we believe there are still opportunities for those seeking yield...Read More
One of the features of the FY20 reporting season was the excellent cashflow performance of most Australian small cap companies. With the onset of COVID-19, many companies faced a liquidity crunch as revenue dried up and relief on cost saving measures, government programs including JobKeeper and rent relief took a while to kick in. This...Read More
Six key things to know about super in 2021
February 22, 2021
The super rules change regularly, and this year is no exception. We are waiting on changes currently before the parliament, anticipating some of the changes announced in last year’s budget, and understanding the impact of SuperStream on self-managed superannuation funds (SMSF), as well as the indexation of the Transfer Balance Cap. Currently before the parliament...Read More