This week we look into the efficacy of the RBA raising interest rates to combat inflation and the subsequent impact on Australian property prices.
This week we visit a topic that has been all the rage in 2022. Inflation. A word we perhaps hadn’t heard of in a couple of decades but has saturated every headline this year. As we write the ASX has given back around 14% from its peak in 2021 and the ASX Small Ordinaries down over 25%, officially entering a correction, and there seems to be no respite. With that context in mind, we take a step back as is always best in scenarios like this.
This week we would like to look at the commodities market. This is a fascinating topic in a world coming out of a global pandemic, in the midst of a “Green Transition” and tackling exacerbated income inequalities. Toss into this mix the context of Russian sanctions. These sanctions matter and will have outsized impacts given that the country has a GDP about half that of the UK.
This week we continue with our examination of the news flow that has been rocking markets. We find it interesting that the headlines have inextricably linked the latest burst in inflation and energy prices squarely with the Russia-Ukraine escalation story. However, for those of you that have been long-term readers, you may remember that we had previously made the call for triple digit oil prices even before the Putin-made fiasco. The latest round of sanctions may have only sped up the process. Similarly, we made the call that higher inflation numbers were likely to be printed due to the fiscal impetus and the nature of the responses to Covid-19. Alongside this, we posited that central banks may find it more difficult to normalise policy than the markets may be expecting.
We begin the New Year with some interesting times in the market (has it ever been different?). Inflation Stateside is running at the highest pace in nearly four decades (i.e. 1981), the markets are expecting a tightening by major central banks, the PBOC being the outlier in going the other way in being increasingly accommodative, and Omicron continuing to gain traction. These are just a few of the headlines grabbing investors’ attention. So, with that in mind, let us go back to a basic question to begin the year, where to next? And more importantly where do we allocate? This week we seek to look at two elephants in the room, in answering these questions: monetary policy and geopolitics (which may very well present the next leftfield event).
Speaking to prospective and actual clients everyday, we get a fair sense and understanding as to the pulse of the market. Throughout those conversations, there are often common themes and questions. Among these, first, should we continue to own equities? Second question, where to allocate in a world of continued low interest rates? Thirdly, we keep hearing about inflation, but what does this actually mean?
We wrote about the need for a U-turn in macro policy thinking recently. It looks like we are getting one; or just as important for market psychology, other investors think we are getting one - a shift that is. Read on to learn what investors should consider in this context.
Here we are, February of 2021 and it has been an interesting start to the year. For those of you that have read previous articles, you know I have been one of those outliers that has been predicting inflation and the tremendous risks posed by the bond market for a good 18-months. So, in keeping with that theme, I shall try and grapple with the interesting trading action so far. It started with a sell-off in treasuries, followed promptly by a sell-off in equities and precious metals with inflation jitters coming back into the equation.
Sid Ruttala fleshes out a number of the points that Robert Swift has been talking about in his weekly Ausbiz appearances. Heading into the pointy end of the US presidential election, there is always heightened uncertainty in investment markets and (as much as we might want to given 2020 so far) this is not the time to bury one’s head in the sand and hope for the best.
This week we look at nothing new. The lofty valuations we are seeing in the tech space are neither new or unprecedented in a historic context. A paradigm shift like this is simply an opportunity to achieve out sized returns. Just look at the trains...
This week Darren Katz, TAMIM director, takes a look at what is happening in markets round the globe with a focus on the key driver of the moment - inflation.
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.