This week’s annual meeting of global central bankers at Jackson Hole comes at a time when investors are beginning to question the wisdom of ongoing extreme monetary stimulus. Contrary to many critics, however, my concern is not that these measures have not worked. Instead, I maintain they’re simply not needed, as the global economy is as good as might be expected once allowance is made for slowing potential growth and falling commodity prices. To my mind, the far bigger global risk now is the impact of persistent misguided extreme monetary measures on financial stability.
Hi, my name is Mai Platts, BetaShares Account Manager – Adviser & Institutional Business, and I am addicted to technology. It took me a while to admit it, however here it is, in this very public forum. I am not ashamed to say that if I am given a choice, you’ll find me waving my phone in the air in the manner of a possessed windmill to get a mobile signal before I resort to using the Gregory’s map which I’m sure, at one stage, was in the glove box of every true blue Australian’s car.
The BetaShares Australian Dividend Harvester Fund (managed fund) (HVST) has proven popular with investors since its inception in October 2014, particularly in light of elevated equity market volatility and the search for yield in today’s low interest rate environment. This note demonstrates that since inception HVST has been able to generate high income returns that have helped it generate positive gross total returns that have been greater and less volatile than that of the S&P/ASX 50 Index.
The Australian exchange traded funds industry hit an all-time high for funds under management in July, reversing a rare month of negative growth in June. The industry ended the month at $23.4B, growing approx. $900m for the month (4% monthly growth). Despite strong sharemarket performance throughout the month, investors still seem cautious with strong inflows in cash and fixed income.
Although the Reserve Bank of Australia’s August Statement on Monetary Policy (SMP) did not contain an explicit easing bias, nor changes to the Bank’s growth or inflation forecasts, it’s nonetheless still consistent with a strong bias to cutting interest rates further – even after the RBA’s decision to slash official rates to 1.5% a few days earlier.
Optimism related to post-Brexit central bank stimulus continued to buoy global equities in July, even though oil prices slumped and initial central bank actions proved disappointing. Other supportive factors were a reassuring bounce-back in US employment growth, a relatively benign US earnings reporting season to date, and continued cautiousness from the Fed over when it might next raise interest rates. With sovereign bond yields plumbing new lows in the post-Brexit environment, the “TINA” trade – There Is No Alternative to equities – is now in vogue.
In some of your previous blog posts, for example here you mention “futures”. I’ve heard about this before, but I can’t say I’ve ever really understood it properly. Can you help?
The Australian dollar have proven stubbornly resilient in recent months, raising doubts about my year-end call that it would fall to US65c. That said, a number of forces appear to be now conspiring to push the little Aussie battler lower in the months ahead.
In the past 3 years international equities ETFs available on the ASX have attracted ~$6 billion from Australian investors – with net inflows into this category growing 40% year on year since 2013. As part of continued product innovation in the Australian industry, a number of ‘currency hedged’ ETFs have now been launched. Here are 3 things to know about currency hedging over equities investments:
This 4 minute interview can be seen here.