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Key Points: The threat to the recovery from the “second wave” of coronavirus cases necessitates additional fiscal support in Australia, with the Government recognising this. Australia’s federal budget deficit is now expected to peak at around $220bn this financial year, or around 11% of GDP,...
Key Points: 2019-20 saw a rough ride for investors as coronavirus hit resulting in small losses for well diversified investors. Key lessons for investors from the last financial year were to: maintain a well-diversified portfolio; timing market moves is hard; beware the crowd; turn down...
Key Points: The run up to the US election on 3rd November has the potential to see increased share market volatility if it looks increasingly likely Biden will win and if Trump ramps up tensions with China (and maybe Europe) in response. However, this is...
Key Points: A serious second wave of coronavirus cases in major developed countries is the biggest risk facing equity markets, and one investors will need to watch closely. However, provided any second wave is relatively mild in terms of pressure on health systems and deaths,...
Key Points: The strong rally in shares since their March lows reflects a combination of economic reopening, signs of recovery, policy stimulus and once pessimistic investors closing underweight or short positions. Shares are vulnerable to a short-term consolidation or pullback. But if we are right,...
Key Points: Australia capital city home prices fell -0.5% in May. Significant policy support & the earlier reopening of the economy have made our worst-case scenario for a 20% decline in average Australian house prices unlikely. However, our base case is for home prices to...
Key Points: Key medium to longer-term implications flowing from the coronavirus shock are: lower for longer interest rates; a further blow to globalisation; another leg up in the US/China cold war; bigger government and public debt; a long-term risk of higher inflation; consumer & investor caution;...
This chart titled "Staying the course" illustrates the effects of Bull and Bear markets on investments for the past forty years. To view the chart click here....
Key Points: Australia’s federal budget deficit is expected to peak at around $200bn in 2020-21, or around 10% of GDP which will be the highest since the end of WW2. This will see net public debt nearly double as a percentage of GDP over the...
Key Points: Australia has performed better than many countries in controlling” coronavirus, it has a stronger economic policy response & its major trading partner is 2-3 mths ahead of the rest of the world into economic recovery. If, as a we expect, this results in...
