Over the last eight financial years, bond returns have exceeded equity returns on average by over 250 basis points per annum.
As interest rates continue to fall in Australia, investors may want to take their cue from the Reserve Bank of Australia.
Whether you believe in bubbles or not, Australian house prices remain near their peak, and now is an opportune time to consider de-risking.
To meet the growing need for income and diversification, especially for retirement portfolios, there is an alternative to bank hybrids and equities that seems to be overlooked
What a difference a quarter makes. Only a few months ago, Australian investors faced overheating property markets and, with the cash rate at a record low, dwindling sources of income.
To pop or not to pop? Since the global financial crisis, policymakers in many countries have debated the proper response to soaring asset values.
With the Reserve Bank of Australia (RBA) policy rate now at 2% and Australian banks much more focused on raising capital than raising deposit funding, the “free lunch” that Australian investors quite rightly feasted on has ended.
Looking forward, the biggest risks to Australia’s economy are the over-levered consumer and the property market.
On April 7, the Reserve Bank of Australia stayed steady at 2.25% for the second month in a row, somewhat wrong-footing markets once again. Bond market participants, in turn, simply moved their rate cut expectations from April to May, seemingly without wondering or worrying about what new information would be required to catalyze a rate cut. Their assumption may be premature.