J.P. Morgan – 3Q22 “Guide to the Markets – Australia”
- An economic slowdown in the second half, doesn’t guarantee a recession
- Banks may be pulling forward rate hikes, but the end point is the same
- Cautious, but not underweight, on equities given a more stable economy in the second half
- Duration more appealing as yields have risen meaningfully
See J.P Morgan’s Guide To the Markets Presentation Here: https://am.jpmorgan.com/au
The Soft or Hard Landing Calamity – VanEck
The era of easy money ebullience is over. Equity investors are experiencing the first sustained drawdown in 10 years, while bond investors are experiencing the same return phenomena as their equity counterparts.
While we are not at the point of despair investors are feeling the bear market blues. It is wise to remember that bear markets are normal and tend to be short-lived. The question of reaching the peak or trough is a perpetual one and no investor has ever picked either.
Theses markets present opportunities for those who know where to look.
See VanEcks Full Presentation Here: https://vaneck.com
Five of PM Capital’s Current Key Investment Themes
Pm Capital has argues that rising inflation would be more persistent than markets expected and favor sectors link banks and commodities that could outperform as rates rose. PM Capital believe markets are at a major turning point. The 40-year bull market in bonds has ended. Government bond yields are rising as markets expect some central banks to move sooner and more aggressively with rate rises to cool economic growth and dampen inflation.
Read The Full Report Here: https://www.pmcapital.com.au
Infrastructure Assets are Well Placed for an Era of Inflation
Magellan Group explores how infrastructure assets will fair in an era of inflation. The article notes insulation from rising prices should help protect their share prices.
Read The Full Article Here: https://www.magellangroup.com.au
The 2022 Australian Federal Election and Investors
Shane Oliver, Head of Investment Strategy and Chief Economist at AMP Capital looks at the implications for investors of the 21 May Australian Federal election.
The Key Points are as follows:
- Australian election campaigns tend to result in a period of uncertainty which have seen weak gains on average for shares followed by a bounce once it’s out of the way
- Labor is not offering a significantly different economic policy agenda than the Coalition. With exception of climate policies, it’s hard to see a significant impact on investment markets from a change in government.
- A bigger risk would come from a hung parliament resulting in a minority government forced into reliance on minor parties or independents
Read The Full Article Here: https://www.ampcapital.com
Ray Dalio: Money, Power and the Collapse of Empires – Lex Fridman Podcast
We have always enjoyed listening to Dalio’s perspective of the word (macro calls/considerations). This podcast with Lex Fridman, was released on Boxing Day and covers some of the key themes recently conveyed in Dalio’s new book – The Changing World Order – as well as his thoughts on Elon Musk, crypto, how to take notes and advice for young people.
Watch On YouTube: https://www.youtube.com
Listen On Spotify: https://open.spotify.com
Milford Asset Management – On Track 2022
Milford Asset Management have released their annual digital magazine. The Magazine provides a number of insights including:
- 2022 Outlook – What’s instore for markets in the year ahead
- The Housing Market – will the boom last?
- Your Family Future – planning a smooth transition of wealth