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Client Briefing Updates

Shane Oliver Updates: Five reasons why the Australian dollar is likely to resume its upswing over the next 12 months

16 September 2021

Movements in the value of the Australian dollar are important for Australian-based investors in that they directly impact the value of (and hence returns from) international investments and indirectly effect the performance of domestic assets like shares via the impact on Australia’s competitiveness. But currency movements are also one of the hardest things to get right. This year has been no exception with the $A initially surging to $US0.80 in February... Read More..

Shane Oliver Updates: Australian GDP slowed in the June quarter & will be hit hard by the lockdowns - but here’s 7 reasons to look beyond the gloom

2 September 2021

Three months ago there was much optimism about the Australian economic outlook. GDP regained its pre pandemic level, confidence was strong, the jobs market was roaring, there was minimal community coronavirus & vaccines were providing optimism of a more sustained reopening. Since then renewed coronavirus outbreaks of the Delta variant have seen the near-term outlook turn pear shaped – notably in NSW & Victoria. Read More..

Shane Oliver Updates: China’s growth slowdown and regulatory crackdown – what does it mean for China’s growth outlook?

27 August 2021

After surging 65% from its coronavirus low in March 2020 to its high in February this year, the Chinese share market saw an 18% decline into July. This reflected concerns about policy tightening, the economic outlook and a regulatory crackdown on a range of industries, notably tech stocks and steel production, with the latter contributing to a plunge in the iron ore price. Read More..

Shane Oliver Updates: Six reasons why shares are at or near record levels. But is it sustainable?

18 August 2021

Despite lots of worries – around the resurgence of coronavirus driven by the Delta variant, peak growth, peak monetary and fiscal stimulus and high inflation – global and Australian shares are around record levels. So how can this be? Particularly with bond yields down sharply from their highs earlier this year. And how sustainable is it? And what are the risks? Read More..

Shane Oliver Updates: Coronavirus Continues To Cause Havoc Globally And In Australia – But Here Are Five Reasons For Optimism

18 August 2021

The news on coronavirus has been bleak again lately – with rising cases globally & the ongoing NSW lockdown. However, there are five reasons for optimism: lockdowns still work against Delta (eg, in SA & Victoria); vaccines are working; once lockdowns end economic activity rebounds quickly; the threat posed by Delta will keep fiscal & monetary policy easier for longer; and vaccinations are ramping up in Australia. Read More..

Shane Oliver Updates: Great Investment Quotes For Topsy Turvy Times

11 August 2021

The current environment seems to be one of extreme uncertainty. We have seen a strong economic recovery from last year’s global and Australian recessions – but there are worries about the resurgence of coronavirus driven by the Delta variant, peak growth, peak monetary and fiscal stimulus, high inflation, and high debt levels. Read More..

Shane Oliver Updates: Seven Key Charts For Investors To Watch – Where Are They Now?

23 July 2021

While shares are at risk of a near term correction on the back of coronavirus and inflation concerns, the trend is likely to remain up against the backdrop of continuing economic recovery and low interest rates. This note takes a look at seven charts we highlighted in January for investors to watch as being critical to the investment outlook this year. Put simply, where are they now?. Read More..

2020-21 saw investment returns rebound – expect more modest but still good returns this financial year

8 July 2021

The past financial year saw a spectacular rebound in returns for investors as the focus shifted from the recession to recovery against a backdrop of policy stimulus and vaccines. This note reviews the last financial year and takes a look at the outlook. Read More..

Macquarie Wealth Management: 05 July 2021 Research - The Financial Year That Was: Better Than Expected ... And Likely To Continue

5 July 2021

The global and domestic economies recovered much faster than expected through fiscal 2021, driven by unprecedented monetary and fiscal policy supports, a faster than expected re-opening of economies, earlier than expected vaccine rollouts, the release of pent-up demand and (surprisingly) resilient business and consumer confidence, which supported a sharp rebound in hiring, investment and spending once social restrictions were relaxed. Read More..

Shane Oliver Updates: Inflation – why it matters for investment markets

10 June 2021

There has been much concern about inflation this year – but why should it matter for growth assets like shares and property? Surely earnings and rents will just go up with higher inflation offsetting any negative impact from higher interest rates due to higher inflation? In reality, it’s more complicated. This note takes a closer look at the impact of inflation on growth assets like shares and property. Read More..

Shane Oliver Updates: Big-spending Federal Budget set to spur on the recovery

19 May 2021

The 2021 Federal Budget harks back to the immediate post GFC budgets in some ways, with the Treasurer resisting any temptation to start early on the task of budget repair and doubling down on stimulus. The government has announced $96 billion of extra spending over the next four years, but the run of deficits will still be lower than was predicted last October, making this a bit of a “have your cake and eat it too” budget. Read More..

Shane Oliver Updates: The 2021-22 Australian Budget – Spending The Growth Windfall To Further Grow The Economy Towards Full Employment

13 May 2021

The 2021-22 Budget sees the Government ditch its plan to start budget repair (or austerity) once unemployment is “comfortably below 6%” in favour of continuing to focus on growing the economy to drive full employment and, in doing so, repair the budget that way. As a result, the Budget provides more stimulus and, thanks to the stronger economic recovery and high iron ore prices, is still able to report a declining deficit. Read More..

Centrepoint Alliance: 2021 Federal Budget Summary

12 May 2021

It seems like no time has passed since the last Federal Budget. In many ways, that is correct. As a result of the COVID-19 pandemic, the 2020 Budget was delayed until October 2020. And what a year it has been. The 2021 Budget, brought down on 11 May 2021, may well be the last Budget before the next Federal Election is held. With the next Federal Election due to be held sometime between August 2021 and May 2022, the Budget includes a number of “sweeteners’ to keep the electorate favourably disposed towards the incumbent government. Read More..

Shane Oliver Updates: The Return Of Geopolitical Risk? – What To Watch Over The Remainder Of 2021

6 May 2021

Over the last decade or so it seems geopolitical risk has become of greater significance for investors – particularly with the 2016 Brexit vote and Donald Trump’s election, and tensions with China from 2018. However, beyond lots of noise around President Trump and the US election, geopolitical risk took a back seat for most of the last year in terms of relevance for global investment markets as coronavirus dominated. Read More..

Shane Oliver Updates: Four Factors - Besides Interest Rates - That Will Shape The Outlook For House Prices

13 April 2021

Average dwelling prices in Australian capital cities rose by 2.8% in March, their seventh consecutive monthly gain and the largest in more than 30 years. Prices are now up by 3.5% on previous record highs and almost 5% on pre-pandemic levels. Homeowners across the country are sharing in the good fortune, with Perth and Darwin the only two cities where residential property prices have not recently surpassed their previous high-water marks.. Read More..

Shane Oliver Updates: RBA on hold and likely to remain easy for a long while yet as full employment gets more of a look in

8 April 2021

It’s been more than a year since the RBA started using a range of unconventional monetary policies in response to the impact on the economy of the pandemic driven lockdowns and we are now seeing a strong recovery. Normally the RBA might now be starting to contemplate rate hikes for some time in the next year but their operating function is now very different to that seen prior to the pandemic. Read More..

Shane Oliver Updates: Market Outlook Q&A – Global Recovery, Vaccines, Inflation, The Risk Of A Share Crash, Aust House Prices And Other Issues

1 April 2021

This note covers the main questions investors commonly have regarding the investment outlook in a simple Q&A format. From topics on global recovery, vaccines, to Australia's recovery, tensions with China, and, how Australian house prices are booming again. Read More..

Macquarie Wealth Management: 1 March 2021 Investment Strategy Update: Temporary Turbulence

1 March 2021

Heading into the new year we expected to see a strong growth rebound, the (re)emergence of some inflation, a rise in bond yields and for last year’s winners to become this year’s losers, as investors rotated out of expensive/over-owned growth stocks into cheap/under-owned value and cyclicals. Read More..

Macquarie Wealth Management: 26 Feb 2021 Investment Strategy Update: Part 1- Why It Will Require More Than Just Rising Yields To Kill The Equity Bull Market

26 February 2021

There is an enormous focus on the recent rise in long bond yields and if/when they may start to undermine – even prick – the equity bull market. We do not pretend to know the bond yield level that will prove to be a tipping point for equities because in reality there is no magical level that moves the outlook from good to bad (on a consistent basis) as this is as much about the conditions that surround the move in the bond yield... Read More..

Shane Oliver Updates: The bond crash of 2021? Seven things for investors to consider

24 February 2020

The share market has been described by Warren Buffett as a “manic depressive”. The same can be said of financial markets generally I reckon, and it’s certainly been evident lately. Just a year ago investors were worried about depression and deflation with bond yields and share markets plunging and now they are worried about overheating and inflation with bond yields rising rapidly and causing agitation in share markets! Read More..

Shane Oliver Updates: Australian house prices on the upswing again – seven things to bear in mind about the Australian property market

18 February 2021

After a 2.8% dip around mid-last year in response to the pandemic, average capital city home prices are rising again. Put simply - record low mortgage rates, multiple government home buyer incentives, government income support measures, pent up demand from the lockdowns, bank mortgage payment holidays, activity associated with a desire to “escape from the city”... Read More..

Shane Oliver Updates: Nine Common Mistakes Investors Make

10 February 2021

In the confusing and often seemingly illogical world of investing, investors often make of bunch of mistakes that keeps them from reaching their financial goals. This note takes a look at the nine most common mistakes investors make. Read More..

Shane Oliver Updates: Seven key charts for investors to watch regarding the global economy and investment markets this year

29 January 2021

Our high-level investment view is that while shares are vulnerable to a short term correction having run up hard since early November, overall investment returns will be solid this year on the back of economic recovery (driven by stimulus and the deployment of vaccines allowing a more sustained reopening) at the same time that interest rates remain low. Read More..

Shane Oliver Updates: 2021 - A List Of Lists Regarding The Macro Investment Outlook

13 January 2021

2020 turned out far better for diversified investors than had been feared when the pandemic hit triggering plunging share markets and deep recessions, with average balanced growth superannuation funds looking like they have returned around 3%. This followed around 15% last year. Balanced growth super funds returns have averaged around 7% p.a. over the last five years which is well above inflation & bank deposit returns. Read More..

The Australian Government's Mid-Year Economic and Fiscal Outlook - peak deficit has likely been seen

21 December 2020

The Federal Government has updated its budget deficit projections and economic assumptions in the Mid-Year Economic and Fiscal Outlook (MYEFO). Thanks to a combination of stronger than expected economic growth and a higher than expected iron ore price, revenue growth has increased and projections for outlays have been lowered. Read More..

Shane Oliver Updates: Review Of 2020, Outlook For 2021 – From Pandemic To Recovery

9 December 2020

2020 didn’t exactly turn out the way I or many expected a year ago. For Australia, the year started badly as severe drought had given way to the worst bushfires on record. But just as the bushfires were receding it gave way to the coronavirus pandemic. Every year has a big surprise - or what Dr. Don Stammer has long called Factor X - but they don’t usually have such a profound impact as the coronavirus pandemic has. Read More..

Shane Oliver Updates: Still The Lucky Country – Five Reasons Why Australian Shares Are Likely To Outperform In The Year Ahead

23 November 2020

Australia continues to perform better in “controlling” coronavirus, it has a stronger economic support policy response, its major trading partners in Asia are in better shape, the drag from the mining bust is over and it should benefit from a cyclical global recovery in 2021. Read More..

Shane Oliver Updates: Mixed Outlook For Australian Housing Amid Prolonged Pandemic

6 November 2020

A relatively high rate of unemployment across the nation, coupled with a freeze on immigration, and consequently population growth, might ordinarily spell bad news for the housing market. Instead, Australian capital city average dwelling prices rose 0.2% in October, according to CoreLogic, the first monthly gain since April and hot on the heels of a cumulative contraction of almost 3% between April and September. Read More..

Shane Oliver Updates: Expect Slower Medium-Term Returns

22 October 2020

Despite a 35% or so plunge in share markets earlier this year; on the back of the pandemic and rough patches in 2018, 2015 and 2011, well diversified Australian investors have seen pretty good returns over the last 10 years. The median balanced growth superannuation fund returned 5.8% pa over the five years to August and 7.3% pa over 10 years and that’s after fees and taxes. Read More..

Federal Budget Update 2020-21

8 October 2020

Originally scheduled for release on 12 May 2020, the delayed Federal Budget was released at 7:30pm on 6 October 2020, the delay having resulted from Australia’s, and indeed the rest of the world’s health and economic attention being diverted to managing the Coronavirus pandemic, or COVID-19. Read More..

2020 Federal Budget Analysis

7 October 2020

Treasurer Josh Frydenberg’s Budget provides tax relief and financial assistance for many Australians, including low and middle income earners, business owners, young workers and social security recipients. Read More..

Shane Oliver Updates: Risks remain for global markets in an otherwise positive outlook

5 October 2020

Recent falls in global share markets have triggered talk in some quarters of a potential market crash, but investors should maintain some perspective, given the historical propensity for market corrections and seasonal weakness through the month of September. Read More..

Shane Oliver Updates: The Global GDP Picture: How Does Australia Stack Up?

1 October 2020

Australia’s 7% contraction in GDP during the June quarter was the largest since quarterly records began in 1959. Following on the back of a 0.3% dip in the March quarter, it brought a shattering end to almost three decades of growth without a recession, despite two significant global financial crises and the Asian/Emerging Market crisis in the interim. Read More..

Shane Oliver Updates: Australia’s “Eye Popping” Budget Deficit And Public Debt Blow Out - Can It Be Paid Off? Does It Matter?

28 September 2020

Much concern has been expressed about the longer-term consequences of the blowout in budget deficits and public debt in response to the economic hit from coronavirus. This is understandable given their scale. In Australia, the Treasurer described the projected budget deficit for this financial year of $185bn as “eye watering”. Read More..

Shane Oliver Updates: Market Outlook Q&A – Disconnect To Real Economy, Growth V Value, Vaccines, Property, Gold, Inflation And Other Issues

9 September 2020

In recently presenting a market outlook webinar we received lots of questions about the outlook but were unable to answer them all given time limitations. Here Shane Oliver tries to cover the main questions investors have in a simple Q&A format. Read More..

Graeme Colley Updates On Self Managed Super Funds (SMSF): Changes To Age Limits On Contributions And The Work Test

3 September 2020

From 1 July 2020, the recent change in legislation has allowed making contributions to super easier for anyone aged 65 or 66 years of age as there now is no requirement to meet the work test. But once an individual reaches 67 years of age, the work test must be met prior to the contribution being made. Read More..

Shane Oliver Updates: Seven reasons why the trend in shares will likely remain up, albeit with bumps along the way

27 August 2020

Share markets have had a spectacular rebound from their March lows. The rebound has been led by the US share market which is up 52% and has just risen above its February record high, making it the fastest recovery after a 30% or more fall on record. Other share markets have lagged but are still well up from their lows. This includes the Australian share market which recently rose to its highest level since early March. Read More..

Shane Oliver Updates: Three Considerations For The Post-Coronavirus Property Market

24 August 2020

COVID-19 has impacted many of the big, fundamental drivers of property markets in Australia. There is potential for this to have a lasting impact, which could be good news for the chronic affordability issues in the residential market. Read More..

Shane Oliver Updates: Three reasons why the Coronavirus crisis might fix Australia’s housing affordability crisis

13 August 2020

For years Australia has suffered from poor housing affordability. According to the 2020 Demographia Housing Affordability Survey the multiple of median house prices to median annual incomes is 5.9 times in Australia compared to 3.9 times in Canada, 4.5 times in the UK & 3.6 times in the US. Consistent with this the ratio of house prices to incomes relative to its long-term average is at the high end of OECD countries. Read More..

Shane Oliver Updates: RBA Holds – But More Stimulus Likely As Victorian Lockdown To Knock At Least $12bn From National GDP

5 August 2020

As widely expected, the RBA left interest rates on hold again for the fifth month in a row. It still sees its massive March monetary easing package as working as it expected and signalled more bond buying to keep 3-year bond yields at its 0.25% target but this is just a continuation of its Yield Curve Control program as opposed to new easing. Read More..

Shane Oliver Updates: US Dollar Breaking Down, Gold And The $A Breaking Up – What Does It Mean For Investors?

30 July 2020

The price of gold has now broken out to a record high and the Australian dollar has risen 30% from its coronavirus panic low in March and broken above $US0.70. What’s driving this and what does it mean for investors? The US dollar looks to have peaked in part reflecting reduced safe haven demand with more downside likely. This note looks at the main issues. Read More..

Shane Oliver Market Update: Australian Economic And Fiscal Update – Record Budget Deficits, But More To Come

24 July 2020

This economic and fiscal update is the first since December’s Mid-Year Economic and Fiscal Outlook when budget surpluses looked just around the corner. Since then things have changed dramatically due to the hit from coronavirus and necessary support measures from the Government. Read More..

Shane Oliver Market Update: What Could The Lasting Impacts Of COVID-19 Be?

16 July 2020

Let’s assume for a moment that we are able to contain the outbreak in Victoria and any clusters in New South Wales in the coming weeks. Throw in also the possibility of an effective vaccine emerging, and there’s good cause for optimism about the prospect of life returning to a new normal sometime next year. Here are a few aspects of our world and our economy where the effects of the coronavirus will play out for years to come. Read More..

Shane Oliver Updates: The Fiscal Cliff Is More Likely To Be A Fiscal Slope – And Why Concerns About Australia’s Budget Deficit Are Overblown

15 July 2020

The thought of various government support measures expiring in the months ahead, causing some sort of fiscal cliff over which economies and share markets will plunge, has caused much consternation. But as with the original fiscal cliff of December 31, 2012 in the US, it’s likely to be tapered into a fiscal slope. Read More..

Shane Oliver Updates: The US Presidential Election – Implications For Investors

1 July 2020

Investor focus on the US election waned earlier this year after socialist Bernie Sanders dropped out of the Democratic primary race in favour of moderate Joe Biden. At the same time coronavirus became the main focus for markets. However, markets may soon start to pay more attention as the election is rapidly approaching, while Joe Biden is a moderate, he is proposing higher taxes... Read More..

Macquarie Wealth Management: 25 June 2020 Research - Without A Vaccine, The Road To Recovery Will Remain Rocky

25 June 2020

The rally in equity markets has been closely linked to a bottoming of infection rates and the reopening of economies. The size and pace of the rebound can, inlarge part, be attributed to an unwinding of overlypessimistic growth expectations alongside an openended commitment by policy makers to support liquidity requirements of consumers, business and financial systems. Read More..

Shane Oliver Updates: How Worried Should Investors Be About A “Second Wave” Of Coronavirus Cases?

19 June 2020

The past week has seen a flurry of concerns about a “second wave” of coronavirus cases. It started when US infectious disease expert Anthony Fauci warned the coronavirus outbreak is not over and media started to focus on more than 20 US states seeing a rising trend in new cases, and then over the weekend, China reported a cluster of cases in Beijing around a market. Mass anti-racist protests have probably added to the renewed unease. Read More..

Shane Oliver Updates: Shares Climb A “Wall Of Worry” - But Is It Sustainable?

11 June 2020

After a roughly 35% plunge from their February high point to their lows around 23 March on fears regarding of global recession on the back of the coronavirus shutdowns, share markets have since rebounded sharply, led by US shares. The rally has pushed the Australian ASX 200 back through 6000 for the first time since March. Read More..

Shane Oliver Updates: Australian House Prices Starting To Fall – Collapse Likely Averted But Expect More Weakness Ahead

5 June 2020

Back on 19th March when we first looked at the impact of the intensifying shutdown of the Australian economy on the housing market we concluded that the impact would depend on how high unemployment rose. Our base case was a recession that saw unemployment rise to around 7.5% and would push average home prices down around 5%, but the risk was that a deeper downturn with say 10% unemployment could see a 20% fall in prices. Read More..

Macquarie Wealth Management: 28 May 2020 Research - Breathing Life In Value Stocks – Equity Rotation Just Getting Started

28 May 2020

Equity markets have been on a tear with positive momentum picking up substantially in recent days. We turned more constructive on equities in early April and have continued to push back on concerns that the rally was a bear market bounce, that risk assets were becoming overly disconnected with fundamentals or that valuations would be a short term constraint. Read More..

Macquarie Wealth Management: Asset Allocation 27 May 2020 - How To Boost Income In A Falling Yield Environment

27 May 2020

The coronavirus is driving a perfect storm for income investors. Those focused on income are suffering from a dramatic decline in bond yields and dividend income and for those investments where yields have spiked (i.e. credit, emerging market debt), it has come with a substantial increase in volatility. Read More..

Shane Oliver Updates: 10 Medium To Longer-Term Implications From The Coronavirus Shock

26 May 2020

There has been much debate about the short-term economic and investment impact of coronavirus – on economic activity, unemployment, interest rates, house prices, shares, etc. However, the magnitude of the shock means it will have medium to longer-term implications as well. Of course, there is a danger in placing too much weight on current circumstances in assessing the future. Read More..

Macquarie Wealth Management: 25 May 2020 Research - Will Rising Political Uncertainty Threaten The Recovery?

26 May 2020

The last few weeks have seen political developments (primarily China related) come back into focus for with the start of the National People’s Congress, rising tensions in Hong Kong and a deteriorating US-China relationship. This has seen political uncertainty rise at a time when growth risks are already high. We analyse some of the key Chinese political developments and their implications for investors. Read More..

APN Property Group Investor Updates - APN AREIT Fund: Eight Big Questions

25 May 2020

APN Property Group just released their latest Investor Update titled “APN AREIT Fund: Eight big questions” which was underpinned by the most common questions that they’ve been recently vetting from financial advisers. From queries regarding the distribution rates for the Australian REIT Funds being cut, to the changes in the retail sector after COVID-19, this update will answer all these and more. Read More..

Macquarie Wealth Management: 19 May 2020 Investment Strategy Update: Why We Are Less Worried About Valuations

19 May 2020

The Australian equity market’s (12-month forward) P/E multiple has surged during the recent market rally to almost 18x (from its 23rd March low of 12.3x) and is closing in on its recent market peak P/E of 18.7x. This has led to calls that the market is overvalued and that the “disconnect” with economic and earnings fundamentals will need to be corrected by a market decline. We don’t agree with this simple assessment. Read More..

Macquarie Wealth Management: 15 May 2020 Investment Update: How COVID-19 Is Impacting ESG

15 May 2020

The lockdowns associated with the COVID-19 pandemic have caused a sharp slowdown in global growth. For most businesses navigating this environment, the immediate focus is on financial survival with sustainability taking a back seat, albeit we believe temporarily. As we move past the survival phase, those companies that have the financial capacity are likely to demonstrate an increased focus on their social responsibility credentials. Read More..

Shane Oliver Updates: The Coming Surge In Australia’s Budget Deficit And Public Debt Due To Coronavirus – Can We Afford It?

14 May 2020

Last night would have been Budget night and the Australian Treasurer would have been announcing budget surpluses. Of course, coronavirus intervened, and the surpluses rightly had to be sacrificed to support Australian households, businesses and jobs. And it makes no sense to provide detailed budget forecasts given the extreme uncertainty about the impact on the economy and hence the budget for the coronavirus shutdown. Read More..

Shane Oliver Updates: Nervous About Superannuation? This Isn’t The End Of Days For Retirement Savings

13 May 2020

Superannuation is locked away for a reason, it is a long-term investment. That simple fact can be hardest to accept when markets are in turmoil and balances are taking a hit, but in our view, history works in favour of applying a long-term lens when everyone is heading for the exit. Anyone could be forgiven for thinking an argument for holding your ground with superannuation during this period of turmoil is marketing spin. Similarly, the urge to flock to ‘safe’ assets like cash is understandable, as equities exposures in superannuation portfolios take a hit. Read More..

Shane Oliver Updates: The Lucky Country - Three Reasons Why Australia May Come Through This Period Of Global Misery Better Than Most Countries

7 May 2020

Back in January when the bushfires were raging, I feared Australia’s luck had ran out. But right now, I thank god I live in The Lucky Country! Donald Horne’s original conception of the term in the 1964 book of the same name about Australia being run by “second rate people who share its luck” always seemed a bit too negative to me. Sometimes it may seem that way for a patch and yes mistakes are made, but when it really matters, I reckon we are led pretty well. Read More..

Macquarie Wealth Management: 29 April 2020 Research

1 May 2020

The rally in global equity markets (the US in particular) but including Australia, is starting to reach pain trade levels for anyone who is below benchmark. US equities are now less than 15% from their all time highs while Australian equities are a little further behind at around 25% from their YTD peak. Read More..

Shane Oliver Updates: Why Super And Growth Assets Like Shares Have To Be Seen As Long-Term Investments

29 April 2020

When share markets plunge as they did into March the standard questions are: What caused the fall? What’s the outlook? And what does it mean for superannuation? The correct answer to the latter should be “nothing really, as super is a long-term investment and share market volatility is normal.” Read More..

Shane Oliver Updates: Light At The End Of The Coronavirus Tunnel – What Does It Mean For Investors?

23 April 2020

The blanket coverage of coronavirus and its impact on the economy can lead to a lot of confusion right now. Some reports are hopeful of anti-viral drugs, others say a vaccine is at least a year away. There is talk of curve flattening but still rising cases and deaths. There is news of an easing in lockdowns but also worries about “second waves”. All this against a backdrop of collapsing economic data and surging unemployment. Read More..

Shane Oliver Updates: Magic Money Tree – QE & Money Printing And Their Part In The Coronavirus Economic Rescue

17 April 2020

Along with massive fiscal stimulus globally to deal with the impact of coronavirus shutdowns on the economy, the last month or so has also seen massive monetary easing – with the latest being the US Federal Reserve expanding its emergency lending program to $US2.3 trillion. Read More..

Macquarie Wealth Management: 14 April 2020 Research

15 April 2020

The Fed has exceeded all expectations around the quantum of its policy support. The corollary of its actions is positive for equities even if its generosity has stopped short (at this stage) of adding this asset class to its balance sheet. Monetary policy actions cannot change the speed at which containment policies are removed and this suggests periodic bouts of disappointment relating to the economy and health crisis will continue. Read More..

Macquarie Wealth Management: The Week That Was: April 6th - April 9th

14 April 2020

Led by the US, global equities shrugged off economic concerns and instead focused on the potential peak in US infection rates and the first signs of a tapering off in key European epicentres (Italy) over the past week. As at Wednesday, US equities had risen over 10% for the week and are now up a staggering 28% from the low hit on March 23rd. Read More..

Shane Oliver Updates: What Signposts Can We Watch To Be Confident Shares Have Bottomed?

9 April 2020

After a roughly 35% plunge from their February high point to their lows around 23rd March, global and Australian shares have had a 15-20% rally. What’s more this rally has occurred despite increasingly bleak economic data ranging from plunges in business conditions surveys or PMIs (see the next chart) to a record 10 million surge over two weeks in claims for unemployment payments in the US. Read More..

Macquarie Wealth Management: 6 April 2020 Research - After The Panic Subsides…Then What?

7 April 2020

Despite calls from some commentators that markets will retest their lows, at this stage policy makers have successfully subdued the panic that characterized the first 3-4 weeks of the sell-down. Caution is high and sentiment still fragile, but we think investors are now more focused on determining the fundamental impacts of the economic hit rather than selling risk and raising cash at any costs. Read More..

Macquarie Wealth Management: 6 April 2020 Investment Strategy Update: Bank Dividends – Will They Remain Sacrosanct?

7 April 2020

The coronavirus is driving a perfect storm for all types of investors. Those focused on capital appreciation have suffered as risk assets have been subjected to one of the fastest bear markets in history. Those focused on yield are also suffering as the outlook for corporate earnings signals a substantial decline in dividends is on the way (not helped by substantial capital dilution that is working its way across the market). Read More..

Macquarie Wealth Management: The Week That Was: March 30th - April 3rd

6 April 2020

It was another mixed week for global equity markets as the now familiar tug-o-war between “government support” and the “virus infection rates” continued. In the end, the virus appears to have come out on top with a raft of unfortunate records being set on rising infection rates as well as deaths and markets marginally lower for the week. Read More..

Shane Oliver Updates: The Coronavirus Pandemic And The Economy – A Q&A From An Investment Perspective

3 April 2020

Along with the horrible human consequences, the coronavirus pandemic is having a huge impact on the way we live and as a result investment markets. This note provides a simple Q&A for most of the main issues from an economic & investment perspective. To the extent simple answers are possible in this environment! Read More..

Australian Government - Economic Response To The Coronavirus

2 April 2020

Many businesses have been struggling to retain their employees amidst the economic impacts posed by the coronavirus. In light of this, the Government has announced the JobKeeper payment program which will provide assistance to businesses severely impacted by the coronavirus outbreak to continue paying their employees. The JobKeeper payment program is designed to support employees and businesses affected by COVID-19. Businesses will now have the chance to keep people in their jobs, and, employees can continue to earn.... Read More..

Macquarie Wealth Management: 1 April 2020 Investment Strategy Update

1 April 2020

The coronavirus is driving a perfect storm for all types of investors. Those focused on capital appreciation have suffered as risk assets have been subjected to one of the fastest bear markets in history. Those focused on yield are also about to suffer as the outlook for corporate earnings signals a decline in dividends is on the way. Read More..

Shane Oliver Updates: Is Coronavirus Driving A Recession, Depression Or An Economic Hit Like No Other? What Does It Mean For The Bear Market In Shares?

1 April 2020

Global and Australian shares have fallen well beyond the 20% decline commonly used to delineate a bear market. From their highs to their recent lows major share markets have had roughly 35% falls as investors have moved to factor in a big hit to growth from coronavirus shutdowns. Read More..

Macquarie Wealth Management: 26 March 2020 Research

27 March 2020

Markets don't go from "Destruction" to "Recovery" without passing through a "Consolidation" phase. Macquarie Wealth Management releases their latest Research on Equity Markets, the Market's Consolidation Phase, and how Investors should approach the current Market Situation. Read More..

MLC Update: Stimulus Relief Package And What This Could Mean For You

25 March 2020

A number of measures have been announced to support Australians and the economy in response to the Coronavirus. We have put together some information to summarise the key measures and to assist you in understanding the help that could be available to you. Read More..

Colonial First State Announces Super And Pension Provisions For Members Affected By Coronavirus

25 March 2020

Over the weekend, the Australian Government announced its economic support package to help Australians who are under financial stress as a result of the Coronavirus. Two of the support measures announced include the early release of superannuation for those financially affected by the Coronavirus and temporarily reducing minimum pension payment requirements for retirees. Read More..

Shane Oliver Updates: The Threat To Australian House Prices From Coronavirus

24 March 2020

The Australian housing market was boosted from mid-last year by the combination of the Federal election removing the threat of changes to negative gearing and capital gains tax, rate cuts and regulatory easing. So, after a 10% drop in average capital city prices into mid last year - the biggest fall in property prices for at least 40 years - they have since rebounded by 9%. Read More..

Magellan Global Update From Hamish Douglass

19 March 2020

Magellan's Hamish Douglass releases their Global Portfolio Update which tackles the latest reports on the COVID-19 virus, the world’s economy over the next two to six months, the shape of the economic recovery, and, the numerous advantages of their portfolio amidst the global pandemic. Read More..

Shane Oliver Updates: Five Charts On Investing To Keep In Mind In Rough Times Like These

19 March 2020

The coronavirus crisis is first and foremost a human crisis and my thoughts are particularly with those on the front line of this battle. But, of course, its impacting many aspects of life at present, including investment markets. Read More..

Shane Oliver Updates: The Increasing Economic Threat From Coronavirus - What To Watch For And What Should Investors Do

11 March 2020

Coronavirus continues to rattle investment markets as the number of new cases outside China continues to rise posing increasing uncertainty over the impact on economic activity. And its impact has intensified following the collapse of OPEC discipline causing a further plunge in oil prices raising concerns about debt servicing for oil producers. From their highs global shares and Australian shares have had a fall of around 20%. Read More..

Shane Oliver Updates: The Plunge In Shares – Seven Things Investors Need To Keep In Mind

3 March 2020

The plunge in share markets over the last week has generated much coverage and consternation. This is understandable given the rapidity of the falls – with US shares having their fastest 10% fall from an all-time high on record - and the uncertainty around the coronavirus (Covid-19) and its impact on economic activity. Read More..

Shane Oliver Updates: The Increasing Spread Of Coronavirus – Updated Economic And Investment Market Implications

26 February 2020

The past week has seen a renewed escalation in concern that the coronavirus outbreak (Covid-19) has become or is becoming a global pandemic. This is first and foremost a human crisis and our thoughts are with all those affected and those trying to combat the outbreak. Read More..

Shane Oliver Updates: Three Reasons Why Low Inflation Is Good For Shares And Property

21 February 2020

Share markets are at or around record levels despite lots of worries, particularly around the coronavirus (Covid-19) outbreak. A common concern is that this is because central banks (like the Fed and the RBA) are distorting market forces and just want higher asset prices. And flowing from this its argued that prices for assets like shares and property are overvalued, record highs are artificial, and a crash is inevitable. Read More..

Shane Oliver Updates: From Bushfires To Coronavirus - Five Ways To Turn Down The Noise Around Investing

14 February 2020

2020 has seen a very noisy start to the year with one major event with significant human and investment market implications after another. For Australia it started with an intensification of the bushfires but moved on to a significant ramping up of US/Iran tensions where, according to President Trump, war came “closer than you thought” and now the coronavirus outbreak is creating fears of a global pandemic and a big hit to global economic activity.Read More..

Shane Oliver Updates: The China Coronavirus Outbreak – Economic And Investment Market Implications

6 February 2020

The last few weeks have seen escalating concern that a new coronavirus (called 2019 novel coronavirus or nCoV) originating in the Chinese city of Wuhan in Hubei province will become a global pandemic. Concern has been heightened after the World Health Organisation (WHO) declared the outbreak an “international public health emergency” on 30 January and the number of cases has continued to escalate.Read More..

Shane Oliver Updates: Five Charts To Watch Regarding The Global Economy And Markets This Year

30 January 2020

Our high-level investment view for this year is that a combination of improving global growth boosting profits and still easy monetary conditions will help drive reasonable investment returns, albeit more modest than the very strong gains of 2019. This note revisits five charts we see as critical to the outlook.Read More..

Shane Oliver Updates: Bushfires And The Australian Economy

22 January 2020

The Australian bushfire season that began in September has been horrific with more than 7 million hectares of bush destroyed, more than 25 deaths, significant loss of livestock, estimates of more than a billion wildlife animals killed and more than 1800 homes destroyed. More than 200 fires are still burning. Following the intensification of the bushfires over the Christmas/New Year period attention has now turned to the impact on the economy. Read More..

Shane Oliver Updates: More 21 Great Investment Quotes

29 October 2019

Banner - Shane Oliver Updates - More 21 Great Investment Quotes - STUDY01The world of investing can be confusing and scary at times. But fortunately, the basics of investing are timeless and some investors (often the best) have a knack of encapsulating these in a sentence or two that is insightful and easy to understand. In recent years I’ve written several insights highlighting investment quotes I find particularly useful. Here are some more.Read More..

Should Investors Worry About A Trump Trade War With Europe?

May 17, 2019

The Trade War Is Back – What Went Wrong, What It Means For Share Markets And AustraliaAfter taking a back seat over the last six months as negotiations appeared to make progress the US/China trade war is back on with the President Trump – “tariff man” - ramping up tariffs on Chinese imports again and threatening more and China moving to retaliate. This note takes a simple Q & A approach to the key issues.Read More..

Should Investors Worry About A Trump Trade War With Europe?

May 8, 2019

Should Investors Worry About A Trump Trade War With EuropeWe appear to be moving closer to a resolution in the China and US trade war. But should investors now be worried about Trump declaring a trade war against Europe? Read More..

Market Update April 2019

16 April 2019

Market Update April 2019Global share markets fell slightly over the last week on global growth concerns and renewed US/Europe trade war fears. Australian shares rose though playing catch up to the previous week’s rally in global shares with energy, tech and real estate stocks being the main drivers. Bond yields were flat in the US but fell elsewhere. Read More..

Four Reasons To Love Dividends

10 April 2019

The 2019-20 Australian Budget – The Long-Awaited Surplus And The Promise Of More Tax Cuts Ahead Of The ElectionAustralian companies do, of course, pay out more of their earnings as dividends than overseas companies. That’s great for Australian shareholders, but some are arguing it’s drag on the growth potential of the Australian economy; they say companies are paying out dividends rather than paying workers and investing in capital expenditure for the future.
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The 2019-20 Australian Budget – The Long-Awaited Surplus And The Promise Of More Tax Cuts Ahead Of The Election

3 April 2019

The 2019-20 Australian Budget – The Long-Awaited Surplus And The Promise Of More Tax Cuts Ahead Of The ElectionWe explore the issue of the wealth effect in this Econosights, particularly as it relates to housing assets and its impact on the Australian economy.Read More..

Econosights - The Wealth Effect And The Impact On Consumer Spending

28 Mar 2019
he Wealth Effect And The Impact On Consumer SpendingThe 2019-20 Budget had three aims: to cement the Government’s fiscal credentials by delivering the long-awaited return to budget surplus; to provide fiscal stimulus to an ailing economy; and to help get the Government re-elected.

We explore the issue of the wealth effect in this Econosights, particularly as it relates to housing assets and its impact on the Australian economy.Read More..

Shane Oliver Updates: Five Charts And A Table That Might Be Critical To Look At With Regards To The Global Economy And Markets This Year

1 Mar 2019

the Five Charts And A Table That Might Be Critical To Look At With Regards To The Global Economy And Markets This YearNobody really knows for definite so this note revisits the five charts we come across as critical by which way it will inevitably go on and adds a table on US financial crisis risks to watch.Read More..

The Australian Economy In 2019 – House Prices, Growth And Interest Rates

the australian economy in 20192019 is likely to be an interesting year for the Australian economy. Some of the big drags of recent years are receding but housing is turning down, uncertainty is high around the global outlook and it’s an election year, which will add to uncertainty.Read More..

Shane Oliver Update: The Outlook For Oil Prices Slippery To Grasp

update on oil priceAustralian motorists have recently had some relief from higher petrol prices, but we can’t be certain that trend will continue. Read More..