US rates

Higher funding costs to be a huge problem for lower quality assets in a highly leveraged world

Charlie Jamieson

The volatility genie has now been released and is unlikely to go back in the bottle as late cycle fiscal expansion in the US combined with higher global funding rates from the US Federal Reserve will have markets on their toes going forward. Show More

Running to Stand Still

Etienne Alexiou

On the 9th March 1987 U2 released the Joshua Tree, the fastest selling British Album of all time that went on to sell over 25 million copies. Joshua Tree is still acclaimed as one of the greatest albums of all time. Interestingly Bono considered pulling the album prior to its... Show More

Impact of a second increase in US interest rates

Livewire News

Garry Laurence from Perpetual recent shared an interesting chart, originally created by Jonathan Garner from Morgan Stanley. The chart shows how global equity markets perform after a second interest rate hike by the US Federal Reserve. "Interestingly valuations don't change after one interest rate hike, but after the second interest... Show More

Two hot thematics we’re avoiding

Livewire Exclusive

Chris Stott, Chief Investment Officer at Wilson Asset Management, thinks the Australian market is fairly priced at its current PE of around 15-16 times - slightly above the long-term average. With rate hikes due in the US opening the possibility of a short-term correction, plus the expectation of further rate... Show More

Week in Preview - US jobs report, RBA Board Meeting & outlook for the aged care sector

CommSec

CommSec Advisory’s Nicky Kritikos speaks with Tom Piotrowski about expectations for future US interest rate rises after Friday’s jobs report, Tuesday’s RBA Board Meeting & the outlook for the aged care sector For more market insights, visit https://www.commsec.com.au/market-news/the-markets.html Show More

Watch the futures market, not the dot plot

Livewire Exclusive

Charlie Jamieson, Executive Director at Jamieson Coote Bonds, thinks the Fed is unlikely to follow through on the two rate hikes suggested by the latest ‘dot plot’ released by their Open Markets Committee. Rather than the much-analysed dot plot, he suggests investors should instead be paying attention to the futures... Show More

JCB's (brief) take on FOMC

Angus Coote

Significant downgrades in expected policy path from the FOMC leaves the USD vulnerable and puts the RBA in a very dark corner with the AUD now well above 75 cents and climbing on structural bond buying and USD repricing a weaker FOMC. The FOMC once again comes to meet the... Show More

The US rates reversal playbook

Angus Coote

We have written at length about the US Federal Reserve attempting to hike rates and the flow on effects that a series of hikes would unleash. We suggested that the Fed would be forced to firstly pause on any further rate hikes, and then ultimately reverse course. This is exactly... Show More