Key points Higher bond yields are normal in economic recovery and should not be a major problem for shares if they are matched by rising earnings. But too rapid a rise in bond yields risks driving a deeper correction in … Continue reading →

Key points Expect average Australian home prices to rise 5-10% this year and next as ultra-low interest rates and economic recovery feed through. However, the outlook is divergent – with houses expected to outperform units and smaller cities and regional … Continue reading →

Key points Many of the mistakes investors make are based on common sense rules of thumb that turn out to be wrong. As a result, it’s often wise for investors to turn common sense logic on its head. The easiest … Continue reading →

Key points Shares are at risk of a short-term correction or consolidation, but investment markets should provide solid returns this year on the back of continuing economic recovery and low interest rates. Seven key global charts worth keeping an eye … Continue reading →

Key points US protests are only an issue for investment markets if they significantly impact economic activity. Global and Australian recovery will boost bond yields and there is good reason to believe that (after yet another false ending) the now … Continue reading →

Key points 2020 turned out far better for investors than was feared. 2021 is expected to provide solid returns & see a further rotation from pandemic winners to cyclical investments. Watch: coronavirus and vaccines; US politics; China tensions; inflation; & … Continue reading →

Key points Reflecting the faster than expected Australian economic recovery, the Federal Government has upgraded its growth forecasts and downgraded its unemployment expectations. This in turn, along with higher than expected revenue from higher iron ore prices, has seen the … Continue reading →

Key points 2020 was dominated by the coronavirus pandemic but shares saw okay returns on the back of policy stimulus and vaccine optimism – resulting in constrained but positive returns for balanced growth super funds. For 2021, the combination of … Continue reading →

Key points Modern Monetary Theory reminds us that monetary financing of government spending need not be inflationary if there is spare capacity in the economy. But it suffers from a number of problems: it implies there is always some sort … Continue reading →

Key points Australia continues to perform better in “controlling” coronavirus, it has a stronger economic support policy response, its major trading partners in Asia are in better shape, the drag from the mining bust is over and it should benefit from … Continue reading →

Key points The US election has been close and final counting as well as legal challenges could still upset the result, but the now highly likely outcome is a Biden Presidency. While there is a possibility that the Democrats could … Continue reading →

Key points The RBA has cut the cash rate to a record low 0.1% & announced a broad-based quantitative easing program. While the economic boost is likely to be small compared to that provided by the recent Budget, the further … Continue reading →

Key points This economic downturn and recovery differs from those of the past in that: the downturn was driven by a government shutdown; fiscal and monetary support has been faster and bigger; forced asset sales have been headed off; it’s … Continue reading →

Key points The continuing decline in investment yields on the back of falling interest rates and bond yields has seen our medium term (5 to 10 year) return projections for a diversified mix of assets fall to around 4.8% pa. … Continue reading →

Key points Even in good times successful investing can be stressful. For this reason, it’s useful for investors to keep a key set of things – call them rules – in mind. The key rules I think are: make the … Continue reading →