Why the RBA has joined the central bank rush to the bottom and how investors can continue to benefit. Recent panic moves from central banks around the world feel like useless attempts to hold back the disease of deflation crossing their borders. We know this is only the start of their efforts, because once deflation takes hold and starts affecting expectations, it will be very difficult to eradicate. There may be even bigger problems in store for developed economies with high debt loads; falling inflation leads to climbing real interest rates. The RBA's cut wasn't surprising given inflation numbers hit target. Going forward we expect the language to change to an outright cutting bias - particularly with pressure from the Bank of Canada. We are on verge of a global regime change. Bond yields may appear low, but there are a number of recent events which indicate you should own more bonds than you already do, and own as much USD as possible. Click here to find out why from Head of Income & Fixed Interest Vimal Gor (VIEW LINK)


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James Marlay

This is definitely worth the few minutes it takes to read. Some very interesting views on US interest rates and the prospect of another round of QE in the US