Insights

During the past month, most ASX listed companies reported earnings results. Overall, results have been better than expected as forecasts were set quite low given a range of macroeconomic risks. Inflation has impacted input costs, in particular wage inflation.  In fact, it has been reported that treasury analysis shows the average fulltime salary above $100,000 […]

We trust you enjoyed a relaxing break. It is at this time when we see predictions being made for the year, the best way to approach the market, sectors that will outperform and any number of alternative outcomes. A similar exercise may have been enjoyed amongst friends during a holiday BBQ for fun. A similar

This year amplified the difficulty in predicting markets and the frailties of the human condition on short-term reactions to an art/science which requires long-term thinking. At the start of 2023 the outlooks for the Australian share market were almost unanimous in predictions of doom. One must feel for the poor investors who sold based on

The ASX has risen approximately 3% in November, following a negative October, ending in a relatively flat position over the past two months. By way of comparison, the US S&P500 is up about +10% for the month of November. In $AUD terms the US market is up about 4% for the month of November after

The market has drifted sideways, which may indicate a level of desensitisation towards geopolitical issues, particularly the issue of war and suffering. Cautious investing is appropriate in this instance, as it is in most circumstances. Economic indicators suggest inflationary pressures remain, regardless of central banks increasing interest rates. In the US, retail sales have increased

The past month has seen the market drift sideways, which was beneficial to investors as many companies went ex-dividend following FY23 reporting season. In fact, there is about $43bn of cash due to be paid out in dividends during September and October. Company share prices tend to drop on ex-dividend date by roughly the quantum

During the past month, many ASX-listed businesses reported FY23 earnings. So far, there have been a relatively even spread of ‘beats’ versus ‘misses’. The share price movements have been significant post-reporting, both on the up and down side. The companies that have performed well have demonstrated strong margins and earnings. Surprisingly, discretionary retail has outperformed

The ASX rose 3% during July, as US inflation pressures continued to ease, providing the catalyst for the US market to rise and for the ASX to follow. US inflation has fallen from 9.1% to 3% in the past 12 months, with indicators predicting this to continue. Notably, many of the inflation inputs which declined

The market surprised many with its resilience during the month, against a backdrop of tighter monetary policy and cost of living pressures. The cash position held by fund managers is at all-time highs, as is the net short position held by hedge funds. Clearly, many investors are anticipating a drop in the market. As is

During the month the ASX200 was relatively flat as investors focused on events in the US. The US inflation rate fell from 8.4% to 4.5%, which may result in the US Federal Reserve reducing the velocity of rate rises or leaving rates unchanged. Any curtailment of rate rises should positively impact the share market as