Gold’s best friends at the present time are the world’s debt-addicted central bankers. Like a bunch of stimulant-addicted athletes looking for their next high, the world’s central bankers have become hugely dependent on stimulus. What started out as a means post the GFC to avoid international economic catastrophe, has now... Show More
Aussie market pulled back hard on lack of ECB move on stimulus before recovering some of the losses through the day. Mario Draghi did what he does well, talk well and deliver minimum but the market wanted more. The market is like a spoilt child that has been given too... Show More
In China the equity markets continue their unprecedented rally, as the Shanghai Composite pushes toward 4500 points. In just eight months the index is up 102%. Share turnover is also hitting records with some $250 billion per day when combining the Shanghai and Shenzhen exchanges. This sudden rally has also... Show More
Next week is crunch time for the USDJPY. On Wednesday the US FOMC updates its assessment of monetary policy, and on Thrusday the Bank of Japan (BOJ) releases updated economic forecasts. Either event on its own could cause the USDJPY to break out of its sideways pattern. Max McKegg, managing... Show More
Unsurprisingly, majority of the questions are recently around the depressed IronOre sector, in particular, FMG. Unfortunately, investors prefer to buy falling stocks as opposed to ones at highs, which has a negative correlation to performance. A few thoughts crossed my mind over the weekend that made me want to clarify... Show More
Further rate cuts no saviour for domestic cyclicals. Although still in its infancy, 2015 has so far been a frenetic one for central banks around the world, in what has been a series of synchronised (but not co-ordinated) monetary easings. Central banks in Switzerland, Denmark, Turkey, Canada and Peru have... Show More
There is no doubt that whenever financial markets get a sense that the Chinese authorities are poised to apply more stimulus to stabilise and boost growth that a positive market reaction is assured. However, the key for investors is to determine whether China's recent growth moderation is cyclical or structural.... Show More
3 BIG topics in one quick Monday Report 1 Medibank lists tomorrow The government has had a bonanza with Medibank, issuing the stock to retail at $2 a share and institutions at $2.15 a share. At what price do we sell Medibank? 2 China cuts interest rates for first time in 2-years Simply,... Show More
There are significant dangers in the US Fed's policy of delay with respect to interest rate rises, as savers are punished and bubbles form. The Fed's latest comments on interest rates have been warmly greeted by the market and speculators, confident that the easy money scenario will continue to pump... Show More
It seems that markets cannot get enough of regional central banks and their stimulus drug and when one supplier says there is no more, they look around for someone else to provide the supply. As such, US sharemarkets are at all-time highs and European debt is at all time lows.... Show More
Chinese infrastructure investment growth ramped up from 22.5% in April to 28% in May - the fastest rate in nine months. That suggests China's leaders are hitting the stimulus pedal hard. Fiscal spending also bounced 25% in a marked break from the 10% average monthly increase in the first four... Show More
Federal Reserve Chair Janet Yellen has eased investor concern that interest rates may rise earlier than previously forecast. Yellen said the world's biggest economy will need Fed stimulus for some time. Yellen added the Fed had still not done enough to combat unemployment despite interest rates at near zero and... Show More
Japan's Prime Minister wins decisive reelection on stimulus platform. Prime Minister Shinzo Abe in Japan easily won his reelection vote on Sunday and took a majority rule in Japan's upper house of Parliament. This gives him three years of control without another vote and time to continue his promised stimulus... Show More