Rising interest rates, falling house prices and persistent inflation may have left many Australians feeling pessimistic about the Australian economy, but not AMP Deputy Chief Economist Diana Mousina.
Most people’s experience of artificial intelligence has been the chatbot: ask a question, get an answer. That use is still growing. What is changing—and what matters for Contrarius’ Funds—is the next layer of demand.
Most people’s experience of artificial intelligence has been the chatbot: ask a question, get an answer. That use is still growing. What is changing—and what matters for Contrarius’ Funds—is the next layer of demand.
Over the past few years, the inflation outlook has been the key investor debate. Will it slow? If so, will it reach central banks’ target rates of around 2%? And if not, how much interest rate pain must households, businesses and governments swallow?
As so many investors learn the hard way: markets often take the stairs up and the elevator down. It’s the same with the value of portfolios that were created to fund a certain level of retirement: a few missteps can quickly erode decades of saving and hard work.
Learning from successful professional fund managers is often a shortcut to better investment results. It’s equally informative when there’s a noteworthy shift that brings a previously successful investment strategy into question. Enter the Dalio dilemma.
For many years since its 1989 peak the Japanese stock market underperformed its developed world counterparts, and most global investors’ Japanese allocations trended lower.
But that was then and this is now. The Japanese market recently broke through its 1989 peak propelled by improved governance, yen weakness, and better capital management.
Index concentration is increasingly becoming a concern for investors worldwide.
Consider the S&P 500 Index, the most popular benchmark for US stocks. Over the past decade, the top 10 companies' share of the index's market value has surged from 14% to 33%. This means investing in the S&P 500 largely hinges on the performance of these top 10 companies, the majority of which are tech giants.
Daniel Drew once advised, ‘Anyone who plays the stock market not as an insider is like a man buying cows in the moonlight.’
Maybe you weren’t in the market for a cow but you get the picture.
If you’re the owner of one investment property, you’re the esteemed member of a 2.2 million club of wealth builders. Whilst owning one investment property is a great achievement, you may not be as well positioned as you think you are to generate the type of wealth most investors are aiming for in retirement care of their property portfolios.
Global markets have long been fixated on what’s coming next from the world’s central bankers, particularly the Fed. But some investors may be unaware of a central bank strategy would could change the rules of the investing game if the Fed were to use it.
Bitcoin is now much easier to own for Aussie investors thanks to the ASX listing of the first such ETF last week. The move follows the lead of the US market, which opened the door to bitcoin ETFs in January this year. Investors have since poured billions of dollars into cryptocurrency ETFs, with US bitcoin ETFs collectively amassing over $57 billion of inflows within three months of launch, including offerings from BlackRock, Fidelity Investments, and VanEck.
It’s been a wild ride in recent months for Fed rate expectations. Back in January this year, a buoyant US market expected seven Fed rate cuts by the end of 2024. By March, the market had sobered up a little and expectations had fallen to three rate cuts for the year. But now markets are only expecting one Fed rate cut in 2024. Interestingly, despite pricing out a full six rate cuts since the start of the year, the S&P 500 is up 15% year to date.
With inflation and interest rates remaining higher for longer, the implications for which investment themes have been outperforming and underperforming in recent months has been profound.
With inflation and interest rates remaining higher for longer, the implications for which investment themes have been outperforming and underperforming in recent months has been profound.