World as we see it
In a globalised world, change is the only constant. The ‘World as we see it’ aim’s to convey our own prospective and opinions on the global and domestic; economic, political and financial landscape, highlighting specific issues with implications for financial markets and investment portfolios. We intent to challenge any misguided beliefs which surface through political and commercial bias. Without pressure to provide excessive content we take the time to delve deeper than the mainstream commentary and provide sage advice.
By Barbara Drury on April 8, 2013
The Japanese Yen has reached parity with the Australian dollar for the first time since 2008 after the Bank of Japan (BoJ) announced a shot of adrenaline that it hopes will get the comatose Japanese economy back on its feet. The BoJ surprised financial markets on April 4 with the world’s most intense shot of [...]
By Barbara Drury on March 19, 2013
As the song says, from little things big things grow. And that is what has global investors so worried about the Cypriot bank bailout announced on the weekend.
By Barbara Drury on February 28, 2013
Markets hate uncertainty. Uncertainty increases volatility and increases the risk of short-term losses. But after an encouraging start to 2013, the bulls were pulled up short by the news that the US Federal Reserve may be wavering in its aggressive money-printing approach to economic growth.
By Erling Sorensen on January 14, 2013
Whilst investors have by and large dismissed claims of a recession in the US, it is important to track the economic data that might provide some insights.
By James Dunn on December 18, 2012
Just as it did in the United States, Western Europe, Australia and Japan, low-cost, mass-production manufacturing has begun to trickle out of China, because the cost situation has changed.
By Barbara Drury on November 30, 2012
The strong Aussie dollar is causing widespread pain in sectors of the economy such as tourism, manufacturing and retailing. This is occurring at a time when many industries are also adjusting to major structural changes unleashed by new technology and the cyclical impact of the resources boom.
By James Dunn on November 20, 2012
The last in our series on the four main “thematic” factors under-pinning the global investment environment looks at the global fiscal situation, the interplay between global austerity measures and money-printing, on the one hand, and the seemingly intractable hangover from the Global Financial Crisis.
By Erling Sorensen on October 29, 2012
Part 3 – What happens when we go back to normal?
At what point will the Fed unwind its balance sheet? The answer is when the output gap is closed and the inflation threat re-emerges.
By Erling Sorensen on October 25, 2012
Part 2 – How Has QE Worked?
After more than three years into the QE regime, investors’ understanding of how QE programs have worked is still rather superficial. Many strategists do not believe that QE has made any significant impact on the underlying economy. Yet financial markets have been highly sensitive to QE.