Fed rate hike: What does it mean?

Craig James

The US Federal Reserve has lifted the target federal funds range by 25 basis points to 0.75-1.00% as expected. Two more rate hikes are anticipated in 2017 and three in 2018. The US rates decision affects global interest rates, currencies and sharemarkets. So, what happened and what does it mean? Show More

Keep an eye on oil

Craig James

I consider the oil price to be the single most import chart to watch today. OPEC oil producers still appear committed to the production agreement but US oil producers are adding to global supplies and keeping downward pressure on prices. The chart is telling me that oil prices looked to... Show More

Profit reporting season

Craig James

So far 128 of the ASX200 companies have reported full year results - all but 12 have produced a profit. Excluding BHP Billiton, aggregate profits are up 8.5%; 92% of companies paid a dividend and 85% lifted or maintained dividends. Aussie sharemarket has basically trended sideways through the reporting season. Show More

It’s all about inflation

Craig James

The chart below is the household spending deflator – or the measure of inflation for Aussie consumers. The current environment is all about inflation. Consumers are spending more because most prices are restrained. Now I could have chosen consumer prices, business prices, mining & rural prices or global inflation. But... Show More

Moody blues

Craig James

Rather than a warning, rating agency Moody's has just made an observation: all sides of politics need to make some hard decisions on tax. And decisions for all the country rather than just playing politics. The Reserve Bank has made similar observations - we love roads, bridges, schools, hospitals, but... Show More

The Correction we had to have

Craig James

Global sharemarkets had become 15-20% over-valued and now we are seeing the necessary and expected correction. We saw a similar correction from July to October last year before markets rebounded back to highs over the next four months. What's going on? Check it out here. https://www.commsec.com.au/content/dam/EN/ResearchNews/ECO_Insights_2408.pdf Show More

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