Will lenders weather a downturn in Australian housing market?
All eyes are on the Australian housing market. Australian consumer confidence is tied to the home price outlook. A look at ANZ and the potential impact of a downturn in housing. Goldman Sachs predicts that the rate hikes will reach 2.6% this year, a rise of 2.5% in 2022. This month, the ANZ-Roy Morgan Consumer…
Price control whack-a-mole
Policymakers are ramping up price control responses. Central banks weigh more drastic rate hikes. What to look out for in the week ahead. International policymakers play ‘whack-a-mole’ with global inflation. Failure to keep prices in check and steeper demand freezing rate hikes become more likely, raising the risk of a severe global economic downturn. Monday…
Will there be any relief from high oil prices?
It was an eventful week in the markets. The Fed raised the Fed funds rate by 0.75% with the UK and Swiss banks following suit. The S&P is levelling out this morning after the S&P 500 slid 6% on the week and the S&P ASX/200 reached a 52-week low of 6,416, down 7% on the…
Assessing value in Australian tech
Valuations Technology stocks are often difficult to assess because there is often not a regular shareholder return mechanism, e.g., a dividend, and a lot of future growth assumptions must be made. Furthermore, on a standalone basis, traditional price-to-earnings multiples may not be particularly useful when a company is growing rapidly. One useful methodology is to…
Market chaos and what investors might be thinking
Overnight saw a capitulation in the US stock market, particularly in the tech sector, with the NASDAQ down 4.6% and over 30% YTD. In response, the S&P/ASX200 opened down by over 4%, the hardest hit being the property and tech sector. Building materials supplier James Hardie Industries plc (ASX:JHX) is down 7% at the open….
