A result of the recent short term volatility and overall declines in major indices around the world are better valuations and hence improved forecast returns from these lower prices. Overall the shifts have been largely proportional relative to other asset classes. The more things change, the...
As a result of an adoption of higher Price/Earnings (P/E) multiples across a range of asset classes: where ordinarily we would expect forecasts to be lower given the recent strength in Australian Equities, we continue to see this asset class in our Cheap valuation range...
It is worth noting again the divergence within International Equities. For Developed Markets we have the United States in the upper part of the Fully Priced range with relatively low commensurate returns, and most of Europe in the Cheap valuation band, though not without some...
The primary tool that the world’s central banks have at their disposal is to set short term interest rates, from which other investments are priced either directly or indirectly, using this cash rate as a reference. We often refer to it as a risk free...
Most major indices around the world moved lower during September and the Australian All Ordinaries index was certainly included amongst those. Of note particularly is the move back to our Fair Value range in Listed Property. Returns in International Equities have been bolstered by the...
As outlined in previous commentaries, there have been some further slight reductions in the risk free rate which delineates the threshold between Fully Priced and Overpriced. The return available on a five year term deposit from a major Australian Bank now stands at 4.0%, and...