Market Wrap

Stocks continue to ignore bonds Global shares rose 1.8% and 4% in hedged and unhedged terms, respectively. Growth stocks outperforming following strong earnings results by tech companies such as Alphabet (owner of the Google search engine). Australian shares underperformed global shares, rising 1.1% in July. The leading sectors were materials (up 7.1%) buoyed by higher…

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Market Wrap

Vaccination rollouts en masse Global shares fell 0.8% and 0.4% in hedged and unhedged terms, respectively. Global equities were influenced in part by volatility in US markets. Sizeable retail-initiated positioning in certain small stocks triggered de-leveraging (selling positions) by investors and contributed to broader market weakness. In addition, concerns additional stimulus would not be forthcoming…

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Market Wrap

Vaccine hopes surged Global shares rose 7.7% and 12.2% in hedged and unhedged terms, respectively. Global equities were led on the upside by European equities with the German market up 15% and the French rising 20.1%, both in local currency terms. Positive vaccine trial results from the likes of Moderna and Pfizer were the major…

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Market Wrap

Pandemic concerns reappear… Global shares fell -3.2% and -1.1% in hedged and unhedged terms, respectively. Global equities were led on the downside by both US and European equities with the German market down over -9.4%. Emerging markets rose 4.2% during September in Australian Dollar (AUD) terms with the Chinese market performing strongly whilst other developing…

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Market Wrap

The recovery rally marches on Global shares rose 3.3% and 0.6% in hedged and unhedged terms, respectively. Emerging markets continued to rally (up 4.6%) driven by stronger economic data in China with business surveys such as the Caixin PMI pointing to stronger improvement while June quarter GDP showed a sharp bounce back into positive territory.…

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Market Wrap

The recovery rally marches on Global shares rose 2.3% and fell -1.1% in hedged and unhedged terms, respectively. Emerging markets bounced back strongly (up 3.5%) driven by stronger economic data in China with business surveys such as the Caixin PMI seeing a return to growth continue for Chinese businesses. Australian shares outperformed global shares rising…

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Market Wrap

A relief rally for (most) markets Global shares rose 10% and 3.6% in hedged and unhedged terms, respectively. Emerging markets were relative underperformers (up 2%) as their currencies remained under pressure during the month with the Australian dollar appreciating against the Chinese Yuan, Brazilian Real and others. Factors such as sizeable coronavirus outbreaks in emerging…

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Market volatility and your portfolio

Take a long-term viewInvestment results tend to vary more widely when you just consider the returns over a period of one year.Ten-year returns are generally much more stable and a lot more predictable as can be seen in the chart below.  Impact of reacting to short-term noiseVolatility is part of investing, and whilst we can avoid it,…

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Overcoming the impact of Coronavirus – An economic perspective

How is world faring against the Coronavirus (a.k.a COVID-19)? Since COVID-19 was first detected in China, transmission across the rest of the world has been substantial, as have been the number of deaths. There have been over 3.5 million confirmed cases and over 247,000 deaths. However overall growth rates have slowed globally. This raises confidence…

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Market Wrap

March 2020 Flight to safety globally escalated Global shares fell -13.4% and -8.3% in hedged and unhedged terms, respectively. Emerging markets were relative underperformers (down -10.9%) as they were caught up in a flight to liquidity (cash) by investors seeking safe-haven assets instead. An oil price war triggered by Saudi Arabia also impacted emerging markets…

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