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SHIELD (Sustainable High Yield) > April 2017 Update

Mathan Somasundaram

Market continues to chase sustainable yield in a market with growth risks. SHIELD continues to outperform the market despite a rising bond yield outlook by picking premium quality sustainable yield ideas at reasonable value. Show More

SHIELD (Sustainable High Yield) > March 2017 Update

Mathan Somasundaram

Market continues to chase sustainable yield in a market with growth risks. SHIELD continues to outperform the market despite a rising bond yield outlook by picking premium quality sustainable yield ideas at reasonable value. Show More

SHIELD - Sustainable High Yield | Yield trade keeps outperforming

Mathan Somasundaram

Global markets continue their positive momentum into 2017 on-the-back of the recovery in the US and stability in China, however stretched valuations around the markets are expected to weigh on sentiment over the next few weeks. An improving outlook for interest rates and strong commodity prices has driven a better... Show More

SHIELD - Sustainable High Yield | Death of yield trade is overblown

Mathan Somasundaram

Global markets continue their positive momentum on-the-back of the strength of the recovery in the US and China, however stretched valuations are starting to weigh. The improving inflation outlook and US Fed rate hike expectations have driven the bond yields higher. An improving outlook for interest rates and strong commodity... Show More

SHIELD – Sustainable High Yield | Banks back in fashion

Mathan Somasundaram

Global market worries are all about US presidential election in the short term while Italian referendum and US Fed rates cycle are the next road blocks ahead. The potential end of easing cycle locally and the rate hike in US will support the yield outlook in the Australian banking sector... Show More

SHIELD – Sustainable High Yield | Yield trade outperforming through market volatility

Mathan Somasundaram

Global market volatility is being driven by US Fed interest rate cycle worries and ECB tapering worries. The yield trade will continue to see support as interest rates remain low for longer. Small cap SHIELD stocks continue to outperform the large caps and the overall market over the last year.... Show More

SHIELD – Sustainable High Yield | Size doesn’t matter

Mathan Somasundaram

Global markets are currently going through the cyclical September pullback on heightened macro worries. We see global growth remaining weak while easing bias from most central banks will support more stimulus when stabilising force is needed. The US rate cycle will be pushed back to December and the worry is... Show More

SHIELD - Sustainable High Yield | Small caps outperforming in the yield chase

Mathan Somasundaram

Slowing global growth and central bank actions are expected to keep interest rates lower for longer. Investors are being pushed into high yielding equities to cater for the rising cost and falling yield environment. The outperformance in recent months by the small cap yield stocks over the large caps yield... Show More

SHIELD | Sustainable High Yield – déjà vu…yield is the new growth

Mathan Somasundaram

Macro Outlook: Central bank support and weak fiscal reform should keep growth and interest rates low for longer. We expect investors to be pushed into high yielding equities to cater for the rising cost and falling yield environment. We also expect global investors to buy into Australian equity dividend yields... Show More

SHIELD – Top 20 stocks with sustainable high yield

Mathan Somasundaram

Central bank currency wars, political election cycles, and a corporate survival mode will continue to put downward pressure on growth rates and interest rates. The RBA has been pushed into an interest rate easing cycle as deflation worries starts to bite. The global growth worries, weak US data, and weak... Show More

SHIELD – Sustainable High Yield | How Lowe can RBA go?

Mathan Somasundaram

Central bank currency wars, political election cycles and a corporate survival mode will continue to put downward pressure on growth rates and interest rates. The RBA has been pushed into an interest rate easing cycle as deflation worries starts to bite. The global growth worries, weak US data and weak... Show More

SHIELD – Sustainable High Yield | Rudderless economy heading to lower growth

Mathan Somasundaram

Macro Outlook: Erratic and ineffective fiscal policy settings in the past few years show that the economy has outperformed on autopilot. Slowing global growth and rising global macro volatility will drive local economic growth to lower levels without coordinated long term transition plans. Service industries are unlikely to absorb the... Show More

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SHIELD – Sustainable High Yield | Yield trade to return as currency strengthens

Mathan Somasundaram

Macro Outlook: Central banks policies continue to remain a deterrent for the global economy to evolve. The return of the currency wars will maintain low growth, falling commodities and low to negative interest rates into the future. Falling bond yields and low growth will drive investors towards high yielding Australian... Show More

SHIELD – Sustainable High Yield | Yield trade outperforming market selloff

Mathan Somasundaram

We remain bullish long term while expected short term January profit taking remains after late December rally. US Fed raising rates strengthened USD and forced China to devaluate Yuan with slowing economy. The devaluation of the Yuan has started the rebalancing of manufacturing away from US, Germany and Japan and... Show More

SHIELD – Sustainable High Yield | Yield trade to benefit from growth risks and volatility

Mathan Somasundaram

Despite the short term negative sentiment in yield stocks on the back of global investors selling, investors will start to chase high yielding stocks in an environment of low interest rates and lower growth. Global growth will remain low for longer while central banks provide support to avoid any recession... Show More

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SHIELD – Sustainable High Yield | Yield for Christmas

Mathan Somasundaram

We maintain a bullish long term view while short term volatility expected with US Fed raising rates in December. Markets have already started to chase high yielding stocks in an environment of low interest rates and lower growth. Global growth will remain low for longer while central banks provide support... Show More