Over the past week, we have witnessed a sharp pullback in the US tech sector. The NASDAQ index corrected 10% over the course of one week, which is small in the context of the tech rally, but still 33% higher than 12 months ago. Is the sharp correction a sign of a bubble about to pop, or just a healthy correction within an uptrend?
17th Sep, 2020
The US Federal Reserve recently announced an important change in its framework to achieve its mandate of “promoting maximum employment and stable prices”. The Fed will now be targeting an inflation rate of 2% on average over time, permitting periods of overshooting 2% to make up for previous undershoots.
7th Sep, 2020
Global equities have had a strong rebound led by a remarkable performance from the US share market. US equities (S&P500) are now above their pre-COVID-19 February highs with a trough to peak rebound of 50% in just over 5 months.
31st Aug, 2020
The fixed interest portion of diversified portfolios has traditionally been used to dampen the volatility of risk assets and optimise the risk/return efficiency of portfolios.
24th Aug, 2020
While the A$ at its current level of 71-72c is moving toward the fair value zone, we still see some potential upside into the 75-80c area over the next year or so and are retaining our hedge for now.
17th Aug, 2020
Prior to the COVID-19 crisis, inflation was viewed as a tail risk with a very low probability. However, with the implementation of extreme fiscal and monetary stimulus across the globe, the risk of inflation re-accelerating at some point should be a consideration in structuring well-diversified portfolios.
10th Aug, 2020
The federal government’s recent economic and fiscal update delivered some sobering statistics.
3rd Aug, 2020
While there has been significant talk about the overvaluation of US equities, we show that vastly superior earnings growth (led by the US technology sector) has been the key driver of US market outperformance over the last 10 years.
30th Jul, 2020