low interest rates

Clime Asset Management

In a world post-2000, we find ourselves operating in the ‘new economy’ following the tech bubble and the GFC. Accordingly, the rules of the game have changed. Investors need to consider persistent low interest rates and low inflation, employment and labour participation shifts, and technological advancements, as well as ageing... Show More

Contango Asset Management

As part of the recent Contango Asset Management national Investor Roadshow, Chief Investment Officer, George Boubouras, discusses our current macro outlook and why rates will be lower for longer, our view on China, and how current valuations are looking on the ASX. Click on the video player below to watch... Show More

Livewire Equities

Following Andrew Clifford’s macro overview, which showed why rates would be low for a long time, Clay Smolinski, Portfolio Manager at Platinum Asset Management, takes lessons from their experiences investing in Japan to present three strategies that do well in this environment, and one that doesn’t. 1) “Growth – Japanese... Show More

Livewire Exclusive

As central banks conspire to drive down interest rates, both short-term and long-term, the question of valuation becomes an increasingly difficult one. One of the key inputs to valuation is known as the ‘risk-free rate’, and is generally based on long-term bond yields. As Quantitative Easing and negative interest rates... Show More

Chris Prunty

When we started the Ausbil MicroCap Fund in February 2010, we missed the bottom by about 12 months but in hindsight, it was still a fantastic time to start a smaller companies fund. Valuation multiples ranged from 8-12x PE and earnings were recovering so growth looked better than it does... Show More

Livewire Exclusive

Interest rates represent the time value of money or the rate at which people are prepared to trade off present for future consumption. It significantly impacts the value of equities, being the present value of future cash flows. To the extent that lower bond yields represent lower inflation or weaker... Show More

Tim Kelley

Asset price inflation has been one consequence of low-interest rates, and that is what you would expect. However, the impact of low-interest rates to long-term valuation is not as clear. In assessing value, you need to consider whether low rates will prevail for the timeframe of your valuation, which may... Show More

Livewire Exclusive

Kevin Beck, Portfolio Manager at Paradice Investment Management, sees investors lowering their hurdle rates for returns in this environment of low interest rates. As investors search for returns, they are taking on more risk and driving multiples higher. “The perceived safer businesses trade at multiples we haven’t seen in our... Show More