The debate over the longevity of the economic boom in China has long divided economists and financial market participants. On one side are believers that China’s economic miracle will continue, which will soon make the Chinese economy larger than the US. The other side sees China’s economic growth as largely... Show More
Last month I wrote about how we are ten years on from the beginning of the credit crisis, but are seeing many of the same signs of hubris that were present then. There’s no reason to believe that this time is different, highly priced assets and easy credit are likely... Show More
October was a mixed month for risk assets and a bad month for safe haven assets. The main equity indices fell in the US (-1.9%) and Australia (-2.2%), but rose in Japan (5.9%), China (2.6%) and Europe (1.8%). Commodities were also mixed with US oil (-3.2%) and gold (-2.9%) down,... Show More
It’s hard to pick which nation will spark the next major banking crisis. But the latest moves out of China are certainly troubling. Over there, a new debt relief plan for debt-laden companies has been added to a growing list of systemic financial risks that includes unsustainable credit growth and... Show More
Hamish Douglass, CEO of Magellan Financial Group, says monetary policy and the actions of central banks are “the number one macro issue in the world.” Fixed income markets are "massively distorted," which distorts all other asset markets. An unwinding of monetary policy could have a serious impact on asset prices.... Show More
Aussie market delivered another negative day with weaker global markets and commodities. The market made a mid-day recovery but the comments from RBA governor regarding inflation target and property bubble worries pulled the market back down. We finished below the 5300 psychological level while currency is now below 72 cents.... Show More
Aussie market managed to finish in the black after the bank sector flip flopped between positive and negative. Iron Ore continues to fall while Oil saw support from signs of long term exploration expenditure reduction and Canadian wildfire. Commodities are under risk after China trade data shows weakness and Shanghai... Show More
