Oliver's Insights
Oliver's Insights
Key points – The return of Donald Trump to the US presidency brings the prospect of more US tax cuts and deregulation, but also more tariff hikes and trade wars and policy uncertainty. – His win was not the surprise it was in 2016, and markets have moved to adjust – but it means higher...Read More
Key points – Starting point valuations – like yields and price to earnings ratios – are key drivers of medium-term investment returns. – Valuation starting points for term deposits and bonds have improved. For shares they suggest constrained return potential, particularly from US shares but Australian, European and Chinese shares are a bit more attractive....Read More
Key points – Many of the mistakes investors make are based on common sense rules of thumb that turn out to be wrong. – As a result, it’s often wise for investors to turn common sense logic on its head. – The easiest way to avoid many of these mistakes is to have a long-term...Read More
Key points – A move towards more aggressive fiscal policy stimulus and property support measures should help drive a mild cyclical upswing in China’s economy. – However, it’s doubtful it will be enough to reverse longer term structural problems facing China – around excess saving, demographics and growing state control. – The Australian economy is...Read More
Dr Shane Oliver – Head of Investment Strategy and Chief Economist, AMP Capital Key points – The US election has significant potential to impact markets. A Harris victory would mean more of the same, but a Trump victory could lead to uncertainty particularly around trade. – Australia would be vulnerable to a rapid intensification of...Read More
– but what about the Israel/Iran conflict & other risks? Key points Recession risks, the escalating Israel conflict, the US election along with still stretched valuations mean a high risk of another share market correction and continued volatility. The expansion of the war around Israel and Iran attacking Israel with more missiles is very concerning...Read More
Introduction After pushing to record highs, share markets had a sizeable correction into last week – with US and global shares down nearly 9% and Australian shares down nearly 6%. Such volatility is not unusual and is the price we pay for the higher longer term returns shares provide over defensive assets like cash and...Read More
Introduction “The nine most terrifying words in the English language are: I'm from the Government, and I'm here to help.” – Ronald Reagan “We’re going to build factories again, put people to work making real products for American families, made with the hands of American workers. Together we will protect the wages of American workers…and...Read More
Introduction It’s often said that shares climb a wall of worry. And with good reason. The next chart shows the Australian All Ords price index since 1900 and despite wars, pandemics, and economic calamities, it’s managed to pick itself up and move on to new highs providing solid long term returns for investors. Australian shares...Read More
Introduction Changes in the value of the Australian dollar are important as they impact Australia’s international export competitiveness and the cost of imports, including that of going on an overseas holiday. They are also important for investors as they directly impact the value of international investments and indirectly impact the performance of domestic assets like...Read More