Invest
Aussies warned on looming 'pullback' in markets
One leading Aussie economist has warned investors to expect some temporary uncertainty in domestic share markets, but there are also some opportunities surfacing for opportunistic investors.
Aussies warned on looming 'pullback' in markets
One leading Aussie economist has warned investors to expect some temporary uncertainty in domestic share markets, but there are also some opportunities surfacing for opportunistic investors.
AMP Capital chief economist Shane Oliver said the recent rebound in shares, commodities and commodity currencies like the Australian dollar has been so fast it has taken them to a point where they have technically been overbought.
There has already been some pullback last week, he said, with the trigger provided by various Fed officials “expressing confidence in the US economy and the Fed’s desire to continue raising interest rates with its April meeting being ‘live'”.
“As a result, the US dollar reversed a bit of its recent fall and most share markets, commodities including oil and the Australian dollar pulled back a bit,” said Mr Oliver.
This pullback, he said, may still have further to run but the broad trend of the share market is still upwards.
“Supportive of this are slightly better March business conditions readings globally, lessening concerns regarding China and confidence that the Fed is aware of global risks and doesn’t want to accentuate them by tightening too aggressively,” he said.
“Beyond the near-term uncertainties, we still see shares trending higher this year helped by a combination of relatively attractive valuations compared to bonds, further global monetary easing and continuing moderate global economic growth.”
However, there is some good news on the horizon for SMSF trustees and investors, with asset manager Fidelity confident of the opportunities in oil investment.
Fidelity investment director Alva Devoy said the current oil price is unsustainable with the majority of oil projects non-viable or profitable at this level.
Consequently there have been numerous oil projects cancelled in the past 18 months, and increasing defaults and bankruptcies within the industry.
“Companies with stronger balance sheets have been able to buy assets from these companies going into default, which means we are getting a consolidation in what is currently quite a fragmented market in the US,” said Ms Devoy.
This consolidation, she said, along with the increasing requirements for oil from China, is improving the supply/demand balance for oil, and will see the “oil market tighten significantly in 2016”.
“We’re currently looking at energy companies with very strong balance sheets, that are not wholly debt-financed, that have good assets and are low-cost producers,” she said.
Stock market
Ethical investing tipped to drive ETF market
Following a volatile 2020 where investors poured into ETFs, shareholders are tipped to focus on ethical investing and technology as the recovery from the COVID-19 pandemic continues, an industry expe...Read more
Stock market
‘The concept of collective investing is here to stay’
The phenomenon of retail investors acting as a collective, led by social media and celebrity investors, is here to stay, says one expert. ...Read more
Stock market
What is short selling and should you do it?
Short selling stocks may sound like a good investment strategy when you’re after quick and big returns, but is it worth the risk? Here’s a rundown of why shorting stocks may not be a sound stock t...Read more
Stock market
How much insider trading really happens?
There are at least four times as many people who get away with insider trading than the number of those caught by prosecutors, new research has revealed. ...Read more
Stock market
Why you should be wary of the tech stock bandwagon
After a strong year of tech stock gains, tech shares have been on a decline in recent weeks as increasing bond yields rattle equity markets. ...Read more
Stock market
GameStop set to release first earnings since Reddit stock market rally
The video game retailer at the centre of the WallStreetBets saga is set to post its first quarterly market update since the fiasco began, with social-media investors heavily tipped to continue backing...Read more
Stock market
What is thematic investing and why it could be a fad
Long-term investors are being urged to ignore market fads and instead focus on identifying major socioeconomic, environmental and technological themes, an industry expert has explained. ...Read more
Stock market
ASX 300 companies cash in on JobKeeper scheme
Most of Australia’s ASX 300 companies that received JobKeeper payments did not need the subsidy as they recorded increases in profits throughout the calendar year, according to a study. ...Read more
Home values up 30% (or are they); NFTs taking the world by storm, and why Keating thinks Aussies will be ‘poor’ in retirement
Listen now
Raging floods, the tech stock bubble and the ongoing SG debate
Listen now
Meet the Manager with Trilogy’s Philip Ryan: RBA rates and property price growth
Listen now
The continued property boom, ethical investing and engaging with your super fund
Listen now
Stock market
Ethical investing tipped to drive ETF market
Following a volatile 2020 where investors poured into ETFs, shareholders are tipped to focus on ethical investing and technology as the recovery from the COVID-19 pandemic continues, an industry expe...Read more
Stock market
‘The concept of collective investing is here to stay’
The phenomenon of retail investors acting as a collective, led by social media and celebrity investors, is here to stay, says one expert. ...Read more
Stock market
What is short selling and should you do it?
Short selling stocks may sound like a good investment strategy when you’re after quick and big returns, but is it worth the risk? Here’s a rundown of why shorting stocks may not be a sound stock t...Read more
Stock market
How much insider trading really happens?
There are at least four times as many people who get away with insider trading than the number of those caught by prosecutors, new research has revealed. ...Read more
Stock market
Why you should be wary of the tech stock bandwagon
After a strong year of tech stock gains, tech shares have been on a decline in recent weeks as increasing bond yields rattle equity markets. ...Read more
Stock market
GameStop set to release first earnings since Reddit stock market rally
The video game retailer at the centre of the WallStreetBets saga is set to post its first quarterly market update since the fiasco began, with social-media investors heavily tipped to continue backing...Read more
Stock market
What is thematic investing and why it could be a fad
Long-term investors are being urged to ignore market fads and instead focus on identifying major socioeconomic, environmental and technological themes, an industry expert has explained. ...Read more
Stock market
ASX 300 companies cash in on JobKeeper scheme
Most of Australia’s ASX 300 companies that received JobKeeper payments did not need the subsidy as they recorded increases in profits throughout the calendar year, according to a study. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
