Key points: 2022 is likely to be the year COVID-19 goes from being an epidemic to endemic. Expect ongoing global economic recovery, albeit with bumps along the way. The spike in inflation is partly due to pandemic driven distortions to demand and supply chains but...
Investors remained focused on rising inflation and the possibility of policy settings being tightened worldwide. Bond yields continued to rise – particularly in Australia – as investors brought forward their expectations for interest rate hikes. This hampered returns from fixed income markets. Equity markets performed much more...
The Covid situation took a turn for the worse, as spiralling infections saw new lockdowns introduced in Australia. The government has suggested all restrictions can be lifted once 70% of the adult population has been fully vaccinated. Until then, the outlook for economic activity levels has...
Introduction The past financial year saw a spectacular rebound in returns for investors as the focus shifted from the recession to recovery against a backdrop of policy stimulus and vaccines. Expect modest but good returns this financial year. The big developments of the last financial year The...
Introduction Volatility associated with November’s US election should finally be over, enabling investors to refocus on economic prospects and the outlook for corporate profitability and central bank policy. Joe Biden was sworn in as the 46th President of the US. The transition of power was far from...
Key points Global recovery is on track - vaccines are working. The end of JobKeeper won’t derail Australia’s recovery. Inflation could become an issue in the medium term. Shares are at risk of a correction but remain supported by economic and earnings recovery. Australian house...
Introduction Volatility associated with November’s US election should finally be over, enabling investors to refocus on economic prospects and the outlook for corporate profitability and central bank policy. Joe Biden was sworn in as the 46th President of the US. The transition of power was far from...
Australia: The Reserve Bank of Australia cut the official cash rate to a new historic low of 0.1%. The Treasurer released Australia’s latest Federal Budget. This was essentially a ‘no-surprises’ package of measures designed for Covid-19 challenged times. Given the scope of the challenge, the budget deficit...
Introduction Covid-19 developments continued to dominate attention. There were spikes in the number of new infections in both Australia and overseas, suggesting an economic recovery may be delayed. Share markets powered ahead, however, as investors remained convinced that governments and central banks will provide sufficient financial assistance...
Market and Economic overview Australia The coronavirus ‘curve’ of known cases has flattened out, suggesting social distancing measures have been successful in slowing the spread of the disease. The focus is now on a gradual easing of restrictions – people will gradually start returning to work...
