Global markets
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The Bank of England steps up its fight against inflation with its 13th interest rate hike – raising rates to 5.0 per cent
David Buckland
June 23, 2023
Last night, the Bank of England (BoE) raised its benchmark interest rate by a half percentage point to 5.0 per cent, the highest level in 15 years. When it comes to inflation, Britain remains an outlier compared with other major economies, with consumer prices rising 8.7 per cent in May 2023, four times the BOE’s 2 per cent target and more than double the rate in the U.S. continue…
by David Buckland Posted in Global markets.
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Why is the S&P 500 rallying amidst uncertain times?
Roger Montgomery
June 20, 2023
While our predicted 2023 stock market rally appears robust at first glance, the reality reveals a different story. Initially, pessimists expected the aggressive series of interest rate hikes in 2022 to have significant consequences. Consensus the U.S. faces a recession, led many to predict a decline in stock values. However, contrary to these expectations, the U.S. economy has continued to grow, and the S&P 500 Index, which influences global investor sentiment, has risen by over 15.3 per cent this year. continue…
by Roger Montgomery Posted in Editor's Pick, Global markets, Market commentary.
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The Reserve Bank of New Zealand leads the way….again
David Buckland
May 24, 2023
The Reserve Bank of New Zealand (RBNZ) is determined to crush inflationary expectations, with their 12th increase in official cash rates in the 19 months since 6 October 2021 from 0.25 per cent to 5.50 per cent. continue…
by David Buckland Posted in Global markets.
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Will small caps outperform again?
Roger Montgomery
May 19, 2023
The following chart pack reveals the material underperformance of U.S. and global small companies against their larger-capitalisation peers. The relative performances are displayed over the last twelve months and the 2023 calendar year to date (YTD). continue…
by Roger Montgomery Posted in Global markets, Market commentary.
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Why I think tech and small caps could rally this year
Roger Montgomery
May 10, 2023
With inflation finally coming down, it looks like the U.S. Fed Reserve could soon stop lifting interest rates and start cutting, possibly as early as this year. That’s great news for equity markets, which tend to rally when rates are lower. And it’s particularly good news for technology stocks and small caps. continue…
by Roger Montgomery Posted in Editor's Pick, Global markets, Market commentary.
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What we can learn from Japan’s ageing population
Roger Montgomery
April 12, 2023
Japan’s population is getting older. Today, the ‘land of the rising sun’ has the world’s highest median age, and is the world’s fastest ageing country. Largely as a consequence, innovation, investment and development are slowing, and this is contributing to the country’s ongoing economic stagnation. continue…
by Roger Montgomery Posted in Global markets.
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U.S. big cap growth enjoys P/E expansion in the March 2023 Quarter
David Buckland
April 5, 2023
After declining 18.1 per cent in calendar 2022, the US-based S&P 500 enjoyed a constructive March 2023 Quarter, up 7.5 per cent. Whilst earnings per share (EPS) declined around one per cent, the P/E rating jumped by 8 per cent to deliver a 7 per cent price return. When adding dividends, the total return was 7.5 per cent. continue…
by David Buckland Posted in Global markets.
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This too will pass
Roger Montgomery
March 20, 2023
Market and finance commentators have expended enormous energy writing on the subject of the collapse of Silicon Valley, Signature and Silvergate banks, and the subsequent challenges faced by Credit Suisse. And equally expert commentary will soon speculate about who’ll be next and then about those that subsequently do collapse (First Republic Bank anyone?) continue…
by Roger Montgomery Posted in Global markets.
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What does the U.S. yield curve tell us about recessions?
Roger Montgomery
March 16, 2023
Today, the vast majority of the U.S. yield curve is negatively sloped. Every time this has happened in the past, a recession soon followed. This is no doubt troubling for those adversely affected. But, as an investor, I am not unduly concerned – any market turmoil could present opportunities to invest in quality businesses at bargain prices. continue…
by Roger Montgomery Posted in Editor's Pick, Global markets.
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Another U.S. Bank fails overnight. Now it’s three.
Roger Montgomery
March 13, 2023
Everyone’s talking about the collapse of Silicon Valley Bank (SVB) – the largest bank failure since the global financial crisis – and debating whether it’s the start of another financial crisis. There’s Bill Ackman on one side of the Twitterverse, suggesting more banks will collapse like dominos, while on the other side, there’s U.S. President Joe Biden, who points to the safeguards introduced after the global financial crisis to stop another financial crisis from occurring again. continue…
by Roger Montgomery Posted in Editor's Pick, Financial Services, Global markets.
