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.
This week we would like to revisit the topic of asset prices. More specifically, in reference to the latest RBA meetings and the IMF World Economic Outlook. A topic that is particularly important to us in perhaps elucidating whether we are in the beginning of (another?) bull market or in the final stretches of irrational exuberance. Most importantly, what does this mean for your investing going forward?
Robert Swift takes a look at the shift in language coming from central bankers and finance ministers and, more importantly, the implications for equities and bonds.
Last week Sid Ruttala provided us with a list of things not to worry about, this week he goes the other way and takes a look at a couple of things to keep a eye on given the current market environment.
Robert Swift pens a fictitious memo to Jay Powell, elaborating on his thoughts concerning global monetary policy as it currently stands.
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.
So here we are, official interest rates are now at 1% with a further 25bps cut possible in August which would take the cash rate to 0.75%. While there has been much speculation in the media about the flow on effects for both the property market and consumer spending, it would be prudent to ask the question (as indeed Governor Lowe did) as to how much stimulus this really brings to the table. Even assuming that the full extent of the cuts are passed on by the major banks (not happening), the actual impact this will have on a consumers propensity to spend remains somewhat unclear. What this does to asset prices is however another story altogether.
Guy Carson, of Quick Brown Fox Asset Management and manager of the TAMIM All Cap Value strategy, examines the current state of the economic cycle both at home and abroad. There are a few things to be mindful of heading into this late stage.
TAMIM Director Darren Katz takes a look at the fixed income space. In today's low interest environment our traditional views on asset allocation and how to achieve diversification are being tested. We take a look at private debt, once the preserve of the ultra wealthy and big institutions, fortunately we are now able to access this unique asset class.
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.
This week Darren Katz, TAMIM joint managing director, takes a look at what he believes to be one of the most troubling issues on the financial horizon. An issue that could have far reaching and grave consequences for the global economy, this is not something to ignore.
This week Robert Swift returns to one of his favourite subjects of the past year, a particularly relevant subject in the current global economic environment.
The panic on markets over the last week was trigger by higher wage inflation fears in the US and what this could do to interest rates. Guy Carson takes a quick look at what the impact of impact of higher interest rates could be on your Australian equity portfolio.
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.