Source: Bloomberg, RBA The above chart uses price from this morning for the 28 September data and as it shows there has only been a slight improvement in the yield curve over the last couple of weeks so really no significant impact on troubled beliefs at this point in time. Overnight the equity markets were …
Tag Archive: equities
pub-5731955080761916
Sep 25
Reducing Equity Risk with Bonds
Earlier in the week I was at a meeting whereby one of the attendees suggested that in a balanced portfolio (~70% equities) the equities proportion adds around 90% of the risk, and then in yesterday’s Australian Financial Review I see a headline quote from Stephen Nash (FIIG Securities) that said, “If investors replaced half their …
pub-5731955080761916
Sep 22
Europe equity markets getting smashed…
…and US futures not looking much better. The Euro Stoxx 50 is down 4.4% at the time of writing; UK, German, French, and Spanish equity markets are all down more than 4.3%. The S&P500 futures are down around 1.5% and Australia’s SPI200 is also down around 1%. Plenty of downside risk yet whilst politicians kick …
pub-5731955080761916
Sep 10
A few thoughts on investment strategy for today
With the US heading towards recession and the Euro Sovereign Crisis getting ugly again where to invest one’s funds has never been tougher. Australian bonds yields are around 4%, meaning they are on PE ratio of 25 which compared to local and global shares, which are currently on forward PEs of around 10, are very …
Aug 19
Another dodgy market update
Obviously a pretty difficult investment environment at the moment. Markets tanking again overnight and following on in Australia this morning. Watching Billabong drop around 25% this morning demonstrates the benefits of diversification…I’d hate to be an adviser with an overweight Billabong position in my client’s portfolio. Anyway I digress. Volatility in the sharemarkets will continue for many …
Aug 08
So much for the downgrade…it’s all about growth expectations
So the US has just had its first trading day since S&P downgraded US debt to AA. A downgrade in anyone’s debt would normally result in an increase in yields as the debt is viewed as riskier so investors expect a higher yield to be compensated for that risk. What happened in the US overnight …
Jul 28
European trouble again?
Italy – Germany 10 Year Bond Spread Source: Bloomberg The above chart shows the spread between Italian 10 year bonds and German 10 year bonds. I found it via Paul Krugman’s blog. As Krugman suggests it looks like things are starting to look pretty grim again in Euro land as the spreads are heading towards …
Jun 12
Managing Inflation Risk…advisers have it wrong
Source: van Eyk Research The above poll was taken by van Eyk Research on their subscription website. In terms of the sample, it is large (848 responses) so may be statistically representative of van Eyk subscribers whom I can only assume is financial advisers, researchers, and maybe fund managers. As shown almost 1 in 2 …
Jun 02
Volatility…it might be the best value around? – Part 2
Source: Bloomberg It didn’t even take a week before a volatility spike occurred…Anyone prepared to back me into a hedge fund? 🙂 Send article as PDF
Jun 02
Australian Government Bond Yields – still flat
Source: RBA The above chart of the Australian Government Bond yields shows little change since 23 May with just a marginal flattening at the longer terms to maturity. No surprise given financial markets continuing its volatility combined with significant risks that include Greek bond default and poor economic news out of the US. Whilst this information …