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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
We maintain a bullish long term view while short term volatility offers cheaper SHIELD options. Micro cap stock VTG is the only low growth cheap yield pick from the SHIELD screen that has average earnings and cash flow per share growth of below 10%, an average of price-earnings and price-cash... Show More
We maintain a bullish long term view on the Australian equity market to reach 6500 in 2016. Falling growth outlook, RBA keeping rates unchanged and reporting season uncertainty keeps the short term equity risk high. Australian equities are trading at a premium to long term multiples due to the sustainable... Show More
We maintain a bullish long term view on the Australian equity market to reach 6500 in 2016. Falling growth outlook and the RBA move has made equities the preferred risk/return option for investors wanting more than 3% return. The disparity between the fiscal and monetary policy settings as well as... Show More
The expected short term profit taking in May and the bond market selloff pulled the market below the yield weighted fair value level of 5600. The disparity between the fiscal and monetary policy settings will not help growth recovery and will keep the yield thematic going for the next 12-18... Show More