2022 has been a tough year so far, with both equities and bonds delivering negative returns, though the Australian equity market has fared better than global equities. While the list of concerns has been growing (inflation, Russia/Ukraine, China growth), front and centre has been the fear that high inflation will prove structural, forcing overtly tight central bank policy and raising the risk of a recession next year.
16th May, 2022
As expected, the US Federal Reserve hiked interest rates by 50bps last Wednesday, lifting the target federal funds rate to a range of 0.75% to 1%, the first 50bps rise since early 2000. Meanwhile, the RBA increased the cash rate target by 25bps to 35bps, its first rate hike in almost 12 years.
9th May, 2022
Australia’s headline CPI in the first quarter jumped by 2.1% on the previous quarter, well in excess of the consensus expectation of 1.7%. This marks the largest quarterly rise since the GST-driven spike in mid 2000, though Australian inflation is still well below most other major economies.
2nd May, 2022
Our quarterly managed funds report outlines the pathway best-suited to deliver on our current asset allocation strategy.
26th Apr, 2022
After a period of significant outperformance for value over the past few months, growth has staged a comeback since mid-March. For investors, a key question is whether value outperformance will endure or will the market revert to its decade-long trend of growth dominance.
11th Apr, 2022
After a strong and relatively smooth run in 2021, this year has been a volatile ride for investors. Constructive despite the bumpy beginning we share our second quarter asset allocation strategy.
4th Apr, 2022
After decades lying dormant inflation has picked up dramatically in most major economies over the past 12 months. Australia has so far lagged this inflation surge, though we expect local inflation to accelerate significantly through the first half of this year. We look at what is driving the surge and whether it is transitory.
28th Mar, 2022