The Bank of Canada hiked interest rates another 25bps to 1.00% today, surprising most. As noted last time (following the July interest rate hike) Canada's housing market is running hot, and has all the hallmarks of a property price bubble. Show More
property bubble
Do investors favour the next big thing, rather than focusing on long term success? Show More
Local market moved up in the morning on weak global sentiment before getting hammered by Moody downgrading China. Market tried hard after that news to make a slight recovery and close in the positive. The best performers were Industrials, Staples and Telcos while Gold, Miners and Utilities were the worst... Show More
Ahead of what is likely to be a controversial budget, anticipation is further stimulated by the plethora of policy suggestions and thought bubbles that have been leaked by the Treasury Department. The task set for the Government and Treasurer encapsulates a range of serious problems far greater than simply balancing... Show More
The declaration two weeks ago by the Australian Prudential Regulation Authority (“APRA”) that it was taking further steps to slow the growth of bank provided “interest only” loans in residential property is to be welcomed. However, it represents a reactionary policy that does not target either an appropriate pricing framework... Show More
Local market moved down with weaker commodities and weaker yield despite solid non-farm payroll pushing March rate rise to near 100% probability. Gold was a substantial outperformer in a day when most sectors were negative…Property, Energy and Health Care were the worst performers. Volatility index in Australia reached historical lows... Show More
Local market moved up despite weaker commodities and weaker AUDUSD while non-farm payroll data will set the tone for next week ahead of US Fed meeting. Consumer Staples, IT and Health Care moved the market higher while Metals, Mining, Gold and Property Trusts were the negative performers. Tesla is getting... Show More
Local market fell on the open before recovering to finish positive again as US government passed health care changes and RBA confirmed that they are caught between a bubble and reflation. Utilities, Staples, IT and Health Care moved the market higher with support from Financials while Resources were main underperformers... Show More
Aussie market pulled out sixth straight positive day on low bank holiday volume despite weak US growth and mixed China data. That makes it 25 positive days out of the last 32 trading days since mid-June and it also starts the week positive after 3 straight weeks of positive return.... Show More
Aussie market jumped up on US relief rally but lacked any conviction to follow through. The market was on a three day consecutive negative run delivering a fall of 2.5% before today’s bounce. We continue to get solid data from US economy and tonight’s employment data should hold that trend.... Show More
The first thing Philip Lowe will have to do as incoming Reserve Bank Governor is to review, and re-express, the bank’s inflation target. The target is 2-3 per cent and is about 24 years old. It was first articulated by then governor Bernie Fraser in a speech in March 1992... Show More
Aussie market started strong and then pulled back before a late recovery to end a decent positive day. The market valuation looks stretched at 5200-5300 and the two main sectors (i.e. banks and miners) seem to run into a brick wall. The two key risks for the Aussie market in... Show More
Aussie market started positive in line with US market before the reality of weaker commodities and slowing economy took it down to slight negative territory. As we have been saying for the past few weeks, all the macro, fundamental, technical and trend leading indicators were showing profit taking was coming... Show More
In this week’s special report, Clime’s CIO, John Abernethy shares his latest 'Letter to Investors'. In his last letter, investors were foretold of an expected sideways movement in the Australian equity market. What is hidden within the long term sideways movement is extreme short term volatility. This volatility is expected... Show More
Aussie market moved up and down and finally finished mainly flat. There is enough negative news that can derail optimism in early March. The currency is holding up like a rock and we will need RBA to move on rates to get that down. It’s time to buy some gold... Show More
Aussie market started positive and moved higher before giving some back as the day went on with US worry remaining fresh. The US market DOW JONES index dropped as much as 560 points overnight before recovering to close down 250 as global market jump on shadows to sell out. Asian... Show More
Aussie market took a hammering on the back of global investors pulling out on currency worries. We see the global investor selling pressure holding the market to ransom till the currency drops to mid 60’s. The recent trend suggests we are going to revisit the 5000 low level, but we... Show More
Aussie market started positive on the China stimulus move and then ran into profit taking on low volume as the day went on. It was clear to see a rotation out of TLS and into WBC for the dividend cycle in November. We had expected China to deliver a rate... Show More
Aussie market started negative again and then muscled its way back to positive territory with Energy sector leading the way after STO announced a rejected take-over bid. But at the end of the day CBA followed WBC lead and put up variable rates by 15bps. Bubble or not, everyone agrees... Show More
Aussie market started negative and then muscled its way back to positive with Resources leading the charge. It felt like someone was undoing yesterday’s performance…sector by sector…or am I getting that “Back to the Future” feeling on Oct 21st 2015. The market now pricing in US rate rise pushed back,... Show More