Market
Insights
Targeting higher inflation
In an important shift, the US Federal Reserve changed revised its inflation target meaning that policy rates will stay lower for longer.
Negative real rates drive inflation assets
Enduring negative real rates and fiscal stimulus may encourage inflation. The best performing assets will be those that are inflation protected.
Three global themes accelerated by COVID-19
One characteristic of the current crisis is the acceleration of many trends that were already underway.
Cash rich job keepers
Government support measures in Australia and the US are seeing disposable incomes temporarily rise for some people.
Equity valuations matter
Valuation measures of equities are a significant determinant of future returns, particularly in the US.
The big squeeze
Are we seeing the market climbing a wall of worry? The big positioning squeeze, and the impact of low rates on equity valuations.
A shifting China has big implications
Trade tensions between the US and China have gained attention, but other shifts are also occurring with implications for Australia.
Gold – significant further upside?
Quantitative easing, inflation rates and depressed bond yields and their relationship with gold prices.
Tug of war
There is a tug of war between a wall of money and weak fundamentals and the winner in the near term is very difficult to pick.