Market Watch

Benchmark-aware and index investing will likely always have a role to play in the investment world, but as markets have evolved and diversification has become progressively more important, investors are increasingly looking for approaches that are benchmark unaware. The background to benchmarks A benchmark is any definable market cross-section. Most are weighted by market capitalisation,...Read More

Moving towards the end of the business cycle, investors are increasingly seeking exposure to assets with defensive attributes. Australian real estate investment trusts (AREITs) is a defensive asset class that has shown its ability to deliver strong returns over a variety of market conditions, having outperformed equities over the past one and five-year periods, by...Read More

Invest in a corporate bond fund or put your money in a term deposit? It’s a question more pertinent now than ever, as market interest rates push towards new lows. Both term deposits and managed bond funds are suitable for investors who want a reliable income stream, liquidity and capital preservation. But they have different...Read More

At its meeting today, the Board decided to leave the cash rate unchanged at 1.50 per cent. The outlook for the global economy remains reasonable, although growth has slowed and downside risks have increased. Growth in international trade has declined and investment intentions have softened in a number of countries. In China, the authorities have...Read More

You might remember that late last year markets fell sharply because investors were worried the US central bank, the Federal Reserve, wasn’t ‘dovish’ enough. Investors fretted that the Fed would keep raising rates through 2019 in the face of financial market volatility and signs of slowing global growth. The sell-off was exacerbated by the US...Read More

Since the 1970s governments have spent relatively less on vital infrastructure. With the aftermath of the global financial crisis constraining government finances, that underinvestment has continued. The private sector is stepping up to meet a surge in demand for new infrastructure - across water, energy, transport and communications -- and that is creating opportunities for...Read More

Right now, investors are focused on corporate profits. Australian companies are forecast to show earnings growth of between four and five per cent this results season, which is a modest result compared to recent years. This decline is in large part due to the deteriorating performance of the resources sector compared to recent results seasons....Read More

Investors around the world take environment, social and governance (ESG) issues into account when deciding where to invest, how to invest and how to measure returns.The ESG issues most likely to come under the microscope this year include some old favourites and a few new ones. 1. Climate change Three years after the Paris Agreement...Read More

At its meeting today, the Board decided to leave the cash rate unchanged at 1.50 per cent. The global economy grew above trend in 2018, although it slowed in the second half of the year. Unemployment rates in most advanced economies are low. The outlook for global growth remains reasonable, although downside risks have increased....Read More

Many investors have been rattled by falls in share markets and are fretting about what the new year may hold. But there are a number of reasons to suggest that after a weak 2018, 2019 will be better, and that a well-diversified portfolio should deliver reasonable returns. 1. This is a “mid-cycle” correction Firstly, while...Read More