This week we try to grapple with perhaps one of the most confusing topics in modern financial history, that is the phenomena of negative interest rates. It is perhaps one of the biggest side-effects of modern monetary policy and quantitative easing. To take a Greek analogy, it is the ultimate Pandora’s Box.
Last week in our article looking at the potential for an escalation in fiscal deficits we made a few calls, first that the S&P 500 would inch higher following more QE from the Federal Reserve and news flow out of China negotiations. This week we would like to follow this up with what we feel are some rather interesting developments in the seemingly bubble-like universe of central banks and their viewpoints. As well as some interesting stories around why we feel like there will be a reversion to the mean in terms of value versus the market all together through next year.
Kevin Smith, of Delft Partners and portfolio manager of the TAMIM Asia Small Companies Fund, takes a look at the curious case of Japan. What is happening there that should mean it is a safe haven amongst all the global turmoil?
This week we would like to revisit the age-old topic of the banks. But not by traditional metrics in the sense of either assessing their stability or balance sheets, we would like to posit an alternative perspective, something that Australian investors don’t think about. This is their place in the Australian economy?
At TAMIM we believe a blowout of fiscal deficits and expenditure on a global scale is coming. This will present opportunities, winners and losers, and so it is important to understand why this will happen and how to be ready for it.
Due to popular demand and in light of his recent strong performance, we have decided to publicly release the recording of Ron Shamgar's recent Webinar and Q&A. Ron is Head of Australian Equities at TAMIM and currently oversees the All Cap IMA portfolios along with the Small Cap Income portfolio for the TAMIM Fund.
Last month we saw some more wizardry by central banks, this time in REPO markets. This has prompted us to consider two things, first, how many people actually know what the REPO market is? Secondly, does this mean we are heading for some more good ol' fashioned QE?
Markets & Commentary
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TAMIM Asset Management provides general information to help you understand our investment approach. Any financial information we provide is not advice, has not considered your personal circumstances and may not be suitable for you.