Whilst global markets have maintained positive momentum into 2017, valuations look stretched. Markets are going to run into the US reporting season given the US leadership change and the recent rally pricing due to the optimistic outlook. However, US fiscal policy uncertainty, historically low volatility, rising USD, rising yields and... Show More
Global markets are flip flopping with the US market hitting all time highs. US fiscal policy uncertainty, historically low volatility, a rising USD, rising yields and stretched valuations are raising doubts on the recent exuberance in the equity market. Strong commodities along with a robust USD and rising yields suggests... Show More
Global markets are running into a weaker US reporting season, US Presidential election and major central bank updates on interest rate cycles. We continue to expect the RBA to stay on hold until 2017 after recent inflation and employment data. US Fed and BOJ are expected to hold fire next... Show More
Global markets are recovering from the recent pullback on central bank uncertainty and US election worries. The yield squeeze pressures are beginning to wane while European bank worries are coming back to haunt the markets. Local market is moving into AGM season and that will raise the risk of substantial... Show More
Global markets have recovered on the back of central bank stimulus, while global growth worries remain. US Fed expectations of a rate hike are rising, while history shows they are only going to make one move in 2016 and that is expected to be in December. Model portfolio and changes... Show More
Macro outlook: Global markets are balancing the central bank stimulus against global growth worries to move higher. The FOMC’s likely move to weaken USD and China stimulus will keep resources supported in the short to medium term. Brexit related stocks are likely to have uncertainty hanging over them for the... Show More
Macro outlook: Global markets are expected to start the chase yield as macro risks start to subside. We continue to like globally diversified business models while small cap industrials remains the key preferred sector/size category on growth and yield to value basis. Bank sector is likely to be the main... Show More
Quant strategy model changes: ACX, ALU, HSN and SLK were added while FXJ, HGG, WES and WOW were removed. Show More
Macro outlook: Markets have rebounded from the lows on better commodity prices, China data and US reporting season. Markets are heading into May selling season with risk of slowing China and weaker commodity prices, while the US Fed update is likely add to the volatility. Local budget update and election... Show More
Large & mid cap talking points: The best 5 multi-factor ideas are QAN, BSL, NCM, LLC and STO while the worst 5 multi-factor ideas are APA, REC, TCL, QUB and ILU. Show More
Quant strategy model changes: APN and MYX were added while NTC and RMD were removed. Current quant strategy model portfolio: Materials – large (BHP); Transport – large (SYD, TCL), mid (QUB); Consumer Services – small (AAD, AGI, MTR, RFG); Media – mid (FXJ), small (APN, VRL), micro (ICQ); Health Care... Show More
Strategy outlook: We maintain a bullish long term view on the Australian equity market while short term volatility remains with US Fed outlook, China growth plans and global growth risks. We remain positive on the yield and currency trade, while domestic economic deterioration creates more volatility, cost cutting and M&A... Show More
Strategy outlook: We maintain a bullish long term view on the Australian equity market while short term volatility remains with US Fed and Middle-East unrest. US Fed move on interest rates in December will provide certainty for markets to move forwards. We remain positive on the yield and currency trade,... Show More
Strategy outlook: We maintain a bullish long term view on the Australian equity market while short term volatility driven by multiple central banks offers another opportunity to buy into thematics at a lower cost. Global growth slowdown has driven major economies back to currency wars. We remain positive on the... Show More
Strategy outlook: We maintain a bullish long term view on the Australian equity market to reach 6500 in 2016. Global macro uncertainties, falling growth outlook and the RBA remaining in easing bias has made equities the preferred risk/return option for investors wanting better than bond yield return in an environment... Show More
Strategy outlook: The expected short term profit taking in May has pulled the market down to a yield weighted fair value market level of 5600. We expect the yield thematic to continue with growth outlook remaining very soft and RBA remaining on an easing bias. Show More
Quant Strategy Model Portfolio | January update - Managing risk of Central Banks | We maintain our positive view that the market will recover from the recent profit taking on geopolitical, currency and global growth worries. We see short term risk in high market expectations of ECB stimulus due to... Show More