Fed turns from friend to foe
At its January meeting, the Federal Reserve took no policy action, in line with expectations. The Fed’s main objective this month was to communicate its next steps for the tightening cycle that is being kicked off this year. The statement provided new guidance on the lift-off of rates which “will soon be appropriate” and on…
Top economists expect RBA to hold rates
Australia’s leading forecasters expect the Reserve Bank to resist pressure to lift interest rates all year, despite rising interest rates overseas, much higher inflation, plunging unemployment, and financial market traders pricing in two hikes in the next six months. The 24-person forecasting panel assembled by The Conversation also predicts: weaker economic growth much lower housing…
Where to from here for value stocks?
While US markets are undeniably in nose-bleed territory, the gap between the most highly rated and least highly rated stocks is at record levels. That means undervalued parts of the market could provide stellar returns in the coming years. The performance of US equity market in recent years has been outstanding. The top 10 stocks…
The climate challenge for investors
A number of developments at the COP26 climate change summit in Glasgow gave grounds for optimism. These include deeper cooperation between China and the US and a pledge by the financial services sector to harness its resources to help with the global transition to net zero emissions. In the wake of Fidelity’s Sustainable World Summit,…
The changing shape of income investing
Many trustees think about diversified portfolios in terms of risk management – which makes sense. But a well-diversified portfolio has the other big advantage of helping investors adapt to changing market conditions. In 2022, with significant shifts coming in markets, Perpetual Private expect a subtle change in how they generate income from portfolios. In this…
What’s wrong with Australian mortgages?
If you’re paying off a mortgage – or aspiring to – imagine if you didn’t have to worry so much about rising interest rates. That’s already the reality for US home buyers. Unlike in Australia, most mortgages in the US have a fixed-interest rate, locked in for 30 years. Instead of having to wait and…
Metaverse: Does it meta?
The buzz around the “metaverse” has gone into overdrive as the technology that could make it a (virtual) reality draws closer and internet giants make big bets on its success. But is it all it’s cracked up to be? And does it ‘meta’ for investors? This time it could be different We’ve been here before….
Can VW catch Tesla in the electric vehicle race?
Tesla’s vehicle deliveries soared in 2021 but legacy automakers are running a marathon, not a sprint. Tesla raised some eyebrows last month as it unveiled an 87% year-on-year rise in vehicle deliveries to over 936,000. In terms of battery electric vehicles (BEVs), this puts it some distance ahead of its European rivals, including Volkswagen AG…
Why it’s too early for the RBA to pull the trigger
Inflation is picking up in Australia, and there is considerable speculation about what the central bank will do with interest rates in 2022. The Consumer Price Index figures out this week show prices over 2021 rose 3.5%. That increase reflected big jumps in some prices – such as transportation costs, up 12.5% – while other…
Opportunities in the energy transition
The signs of a low carbon economy are almost everywhere in today’s world. As we transition to a low carbon economy, a considerably large investment universe is starting to emerge. Here we identify 8 key investment opportunities as we pave the way for a low carbon world. What a low carbon economy looks like The…
