US markets in bear territory – misfortune or opportunity?
What we think about the price of an asset largely reflects whether we are a buyer or a seller of it. Most of us don’t have barrels of crude lying around but we do need to put fuel in our cars. We’re naturally inclined, therefore, to think the oil price is too high. On the…
Stocks Consumers Can’t Live Without
A 25 April article appearing here on thebull.com.au noted an observation buried in the latest Deloitte Access Economics Business Outlook – inflation here in Australia was “less risky than in other economies.” Strictly speaking, that statement was true then and remains true today. Inflation here in Australia is at 5.1% trailing the US rate of…
Getting home with a soft landing
Faced with the current spate of delays and cancellations, most of us would accept any kind of landing – hard, soft, skidding to a halt – just get us home, please. For the Federal Reserve (Fed) and other central banks, however, easing the inflationary economy onto the runway safely and comfortably is all that matters….
Fed delivery sees hard landing risk rising
The Federal Reserve (Fed) delivered on hints that it would raise rates by 75bp, reiterating a commitment to bring down inflation. We see increased risks of a hard landing and remain cautious on equities and credit. What Happened? At today’s Federal Open Market Committee meeting, the Fed hiked Fed fund rates by another 75bp, thus…
Oil and Gas Stocks – Buy or Wait and See?
The opening presentation at the Davos 2022 World Economic Forum beginning on 26 May confirmed the obvious – we are in the midst of an energy crisis, global in scope. Some investors can recall the disruption caused by the oil crisis in the mid 1970’s. This one is different. Added to the dramatic increases in…
Inflation vs growth: what matters more to investors?
High inflation is on everyone’s mind, but perhaps growth should be more concerning when taking investment decisions. It is true that to understand the present and face the future, we need to first understand the past. We have talked at length about the current inflation risks and, ultimately, stagflation scenarios and what this all means…
Are value stocks cyclical or defensive?
Investors may need to rethink their preconceptions about value investing. So far this year US value stocks have outperformed their growth counterparts by a whopping 21% (as at 24 May). But what’s behind the rotation? It can partly be explained by the huge spike in bond yields, which has seen the 10-year US Treasury yield…
Insider Buying Stocks to Watch
An 8 June Breaking News article appearing here on thebull.com.au asked the question – Can Insider Buying Mean Good Things? Investors who include having a good management team as one of their criteria for picking stocks would answer the question with a resounding “YES.” Who knows the value of a company and its growth potential…
Bonds are back – here’s why
It has been an extraordinary time for bond markets. As an asset class, fixed income is often seen as equities’ boring cousin, particularly over the past decade of low yields. Recent months, however, have been anything but boring, albeit for the wrong reasons. Bonds have seen a record decline, but may now be presenting some…
Three ASX Listed Investments to Weather the Inflation Storm
Inflation and where to put your money Wage growth is inversely related to the stock market performance. Australia is currently experiencing record-low unemployment and rising wage inflation. Three investments to watch that historically buck the trend. While rising prices at the pump, grocer, and home are taking directly from consumers’ wallets, employers are helping out…
