Market commentary
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Why the market’s bullish sentiment could turn on a dime
Roger Montgomery
June 15, 2020
Global stock markets have catapulted in anticipation of a sharp economic recovery. The trouble is, no one knows how soon, or how strong, the recovery will be. My concern is that negative data could easily swing market sentiment from optimism back to pessimism. continue…
by Roger Montgomery Posted in Editor's Pick, Market commentary
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Zero forever?
Daniel Wu
June 15, 2020
Last Wednesday, Federal Reserve Chairman Jay Powell issued an unequivocally dovish assessment of the US economy in the wake of the coronavirus pandemic. Following the Federal Open Market Committee’s decision to hold its overnight benchmark rate at zero, Powell expressed concern over the medium-term economic and employment outlook, and reiterated the Fed’s commitment to utilise its full range of tools to support the U.S. economy. continue…
by Daniel Wu Posted in Market commentary
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Is the economy on the ropes, or getting back on its feet?
Roger Montgomery
June 13, 2020
Recent economic surveys paint a grim picture of business conditions, job ads and home lending. The question is: can the economy bounce back from the pummeling it took at the hands of the COVID-19 lockdown? continue…
by Roger Montgomery Posted in Global markets, Market commentary
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Why I’m being fearful during this market euphoria
Roger Montgomery
June 12, 2020
Warren Buffett famously said that, to be a successful investor, you should be fearful when others are greedy, and greedy when others are fearful. I think his advice is especially relevant in today’s ‘risk on’ environment, in which the fear of missing out is usurping the fear of loss. continue…
by Roger Montgomery Posted in Editor's Pick, Market commentary
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Why this market bounce has got me so perplexed
Roger Montgomery
June 11, 2020
The 11-year bull market in global equities, which COVID-19 finally brought to an end, came to be derided as the most unloved bull market in history. So, what to make of the strong, and similarly disparaged, bounce since March? Many investors look to be pricing in better times ahead, but media headlines are telling a different story. continue…
by Roger Montgomery Posted in Editor's Pick, Global markets, Market commentary
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Crisis? What crisis? The market says it’s time to buy
Roger Montgomery
June 10, 2020
If you’re scratching your head over the market’s strong rebound since March, then join the club. Because there’s still a large cohort of economists and analysts who continue to see tough times ahead. continue…
by Roger Montgomery Posted in Market commentary
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How should you think about the prospects for a vaccine?
Tim Kelley
June 9, 2020
Gauging the possible extent and duration of the economic downturn resulting from the COVID-19 crisis is a challenging exercise with many unknowns. However, one thing is reasonably clear: in the event that a safe and effective vaccine becomes widely available, the threat posed by the virus will be much diminished and the path to recovery made far smoother. continue…
by Tim Kelley Posted in Market commentary
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Why are we paying taxes?
Andrew Macken
June 9, 2020
Why do we pay taxes? It is a simple question with a seemingly simple answer. Most would agree that taxes obviously need to be paid so that the government can pay for essential services in which we all share. continue…
by Andrew Macken Posted in Market commentary
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Beware trojan horses – The impassioned speech of Anastasia Lin
Roger Montgomery
June 5, 2020
It is widely acknowledged that China knew about the Coronavirus outbreak in late 2019 but did not report the outbreak until the virus appeared in Taiwan. And while the tectonic economic and personal cost remains to be counted, what we already conclude is that our attitude to China and its business interests on our shores must change. continue…
by Roger Montgomery Posted in Market commentary
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A bull at a gate…
Roger Montgomery
June 3, 2020
While US consumer spending, the US economy’s fundamental driver, fell 13.6 per cent in April, and recorded the steepest decline since 1959, the data is now a month old. More recently, the US Institute for Supply Management’s (ISM) Manufacturing Index for May rose to 43.1 from an 11-year low of 41.5 in April, suggesting the economy is rising up off the matt after being KO’d. continue…
by Roger Montgomery Posted in Market commentary
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