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13March 2020

Weekly Market Update – 13th March 2020

March 13th, 2020|Weekly Market Update|

Investment markets and key developments over the past weekShare markets collapsed over the past week as concerns about the global economic impact of the coronavirus intensified, oil prices plunged as part of the secondary impact and policy responses by President Trump and the ECB were seen as not enough. Australian shares fell around 20% with energy shares leading the way down but selling was broad based with industrials, financials and property stocks hit hard given the impending impact on the local economy. Bond yields fell in the [...]

13March 2020

Assessing markets through a cycle, valuation and sentiment framework (COVID-19)

March 13th, 2020|Economy|

In times of extreme market volatility as we are experiencing with the COVID-19 pandemic it can be useful to take a step back and think about what has happened and how that might inform our preferred positioning going forward. Three important questions come to mind in terms of how we think about our portfolios and investment strategy: Valuations: Has the selloff improved the skew of potential returns on risky assets? Sentiment: Is there evidence of a capitulation or panic that suggest risk premia are more [...]

6March 2020

Weekly Market Update – 6th March 2020

March 6th, 2020|Weekly Market Update|

*** Please note: The below information was prepared as it stood, Friday 6th March 2020. While market conditions have changed significantly in the last 24 hours, the general sentiment and insights provided in this update remain current. We are monitoring the Covid-19 situation closely and will continue to provide updates as appropriate. This morning the below missive titled 'the way forward in four broad scenarios' hit our inbox. Considering just how fast the ground continues to move beneath us, we thought it reflective of our [...]

28February 2020

Coronavirus Update

February 28th, 2020|Uncategorized|

By now you have all probably seen the news on the spike in reported cases outside of China. The coronavirus disease is apparently communicable even by those who are not showing signs of having it, which is making it harder to control. The number of new infections in Wuhan/Hubei and the rest of China are falling sharply (latest new infection rate was 630 in Hubei and 20 in the rest of China). However, markets are reacting to the jump in reported cases cumulative outside China [...]

21February 2020

Weekly Market Update – 21st February 2020

February 21st, 2020|Weekly Market Update|

Investment markets and key developments over the past week Global share markets mostly fell over the last week on ongoing concerns about the coronavirus outbreak, particularly after several US companies warned of disruptions to supply chains and sales. Chinese shares managed to rise though as China continued to role out new stimulus measures. Australian shares also rose slightly to hit a new record high helped by better than feared profit results and renewed talk of RBA interest rate cuts. Bond yields generally fell on growth fears, [...]

14February 2020

Weekly Market Update – 14th February 2020

February 14th, 2020|Weekly Market Update|

Investment markets and key developments over the past week Share markets generally rose over the last week, but gains were constrained by ongoing concerns about the coronavirus outbreak after China announced a large increase in new cases. US shares rose 1.6%, Eurozone shares rose 1.4% and Chinese shares gained 2.3%, but Japanese shares fell 0.6%. Reflecting the generally positive global lead Australian shares rose 1.5% leaving them just below their January record high with strong gains in financials, utilities, health and consumer discretionary stocks offsetting coronavirus [...]

7February 2020

Weekly Market Update – 7th February 2020

February 7th, 2020|Weekly Market Update|

Investment markets and key developments over the past week Global share markets rebounded over the last week on optimism the coronavirus outbreak will be contained as well as solid earnings results, although they gave up some of their gains at the end of the week on renewed concerns about the virus' impact on economic growth. For the week, US shares rose 3.2%, eurozone shares rose 4.0% and Japanese shares gained 0.7%. Australian shares benefitted initially from the global rebound, but the boost was limited, reflecting the [...]

31January 2020

Weekly Market Update – 31st January 2020

January 31st, 2020|Weekly Market Update|

Investment markets and key developments over the past week Equity markets continued to weaken over the week as the number of Coronavirus cases increased. While the Chinese and Hong Kong markets are closed for Lunar New Year, Japanese stocks were down by 2%, Eurozone equities fell by 2.3% while US and Australian markets also decreased but by a lesser extent ( 0.4% in US and -0.7% in Australia). However, news that the World Health Organisation (WHO) declared the outbreak of Coronavirus as a global health emergency [...]