Markets are expecting the FED to cut rates again at its December meeting, after the US economy added 227,000 jobs last month, mostly in line with expectations, and the three-month average came in at 173,000, confirming expectations that the labour market is cooling, at a moderate pace.
The Australian sharemarket dropped on Friday in a broad sell-off as investors turned cautious ahead of a key job report in the US that may shed light on whether the Federal Reserve will continue easing interest rates this month.
The big banks had a weak session with Westpac down 1.4 per cent to $32.76, while Commonwealth Bank fell 0.6 per cent to $157.06. That’s despite traders ramping up bets of an earlier rate cut by the Reserve Bank. Money markets imply an around 50-50 chance of an easing in February 2025, up from 25 per cent on Tuesday. The central bank is widely expected to keep the cash rate at 4.35 per cent when it meets next week.
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This is an edited version of a live discussion with Head of Investments for Walk The World Funds and Nucleus Wealth, Damien Klassen. As we roll into the end of the year, how are marketing shaping up, and what strategies are most appropriate given the Trump effect?
We look at longer term return trends, discuss the Australian economic breadth, and the China connection, among other things.
Original live stream here: https://youtube.com/live/zYDnJ1yOOhU
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Digital Finance Analytics (DFA) Blog
DFA Live Q&A HD Replay: Investing Now: With Damien Klassen
This is an edited version of a live discussion with Head of Investments at Nucleus Wealth and Walk The World Funds, Damien Klassen. As the US election closes out, and the RBA releases the latest decision, how are markets shaping up, which segments are risk exposed, and what strategies need to be considered given the international cross currents and economic uncertainties.
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Digital Finance Analytics (DFA) Blog
DFA Live Q&A HD Replay: Investing Now With Damien Klassen
This is an edited version of a live discussion with Damien Klassen, Head of Investments at Nucleus Wealth and Walk The World Funds. Given the strength of the markets in recent days, and the China stimulus programme, what’s ahead, and how should you position given the level of volatility and uncertainty out there?
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Digital Finance Analytics (DFA) Blog
DFA Live Q&A HD Replay: Investing Now: With Damien Klassen
This is our weekly market update where we review the market action starting in the US, then Europe, Asia, and Australia and also cover commodities and crypto along the way. This is a data packed segment, so be warned!
This week markets drove higher, pretty much across the board, thanks to the fall out from the Federal Reserve is slashing interest rates, more benign US economic data and China finally moving more determinedly to bolster growth as China’s central bank lowered interest rates and injected liquidity into the banking system, and with more fiscal measures expected to be announced before a week-long Chinese holiday starting on Oct. 1. Listed shares of Chinese companies jumped on the latest series of stimulus measures from Beijing to boost the domestic economy, including those on international markets.
As a result, we saw upswings in markets across the globe, and this despite weaker oil prices and rising conflict in the middle east. MSCI’s gauge of stocks across the globe rose 0.25%, to an intraday record high. Europe’s benchmark STOXX 600 index closed at a record high, ending up 0.5% at 528.08. China’s blue chips jumped 4.5%, bringing their weekly rise to 15.7%, the most since November 2008. Hong Kong’s Hang Seng index also gained 3.6% and was up 13% for the week, its best performance since 1998.
The Dow Jones Industrial Average rose 0.33%, to 42,313.00, the S&P 500 fell 0.13%, to 5,738.17 and the Nasdaq Composite fell 0.39%, to 18,119.59. All three major U.S. stock indexes posted a third straight week of gains. Nvidia’s 2.2 per cent decline was the reason for the S&P 500 and Nasdaq slipping on Friday, pointing to a report that China is urging local companies to stay away from its chips. The NASDAQ Golden Dragon shot to 7.236.16 while the Russell 2000 was at 220.33.
The best performer of the session on the Dow Jones Industrial Average was Chevron Corp (NYSE:CVX), which rose 2.47% while the worst performers of the session was Amazon.com Inc (NASDAQ:AMZN), which fell 1.67 and International Business Machines (NYSE:IBM) was down 1.16% to 220.84.
“It’s a bubble dream,” according to Bank of America equity strategist Michael Hartnett. His data had another $US10.9 billion flowing into US equities in the week ended September 25.
“Fed cutting into recession is negative for risk assets, but Fed cutting with no recession is positive and investors firmly of the view Fed and China is sufficient policy easing to short-circuit recession risk,” Hartnett wrote.
So in the context of overvalued stocks, markets are still betting on higher ahead, which is quite possible but before the surface there are significant cross currents and risks. So volatility will remain the watch word, and the bubble dream might yet turn to nightmare. We will see.
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Digital Finance Analytics (DFA) Blog
Stars Align To Create A Bubble Dream; But Is A Nightmare Around The Corner?
This is an edited version of a live discussion with Head of Investments at Walk The World Funds and Nucleus Wealth, Damien Klassen as we dive into the current market chaos and explore what is really going on. Is this a replay of the DotCom bubble, or a minor glitch, and where will the markets pivot to next?
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Digital Finance Analytics (DFA) Blog
DFA Live Q&A HD Replay: Investing Now: With Damien Klassen
This is an edited version of a live discussion with Investment Manager Tony Locantro, from Perth. Tony offers several financial services, such as investment management, financial planning, stock selection and fundraising. Tony has helped countless investors and organisations with strategic investment strategies over the last two decades.
His understanding of market psychology has ensured valued investment strategies in bull and bear markets. Because of his ability to understand the small cap market space, Tony has been featured in dozens of well known publications across Australia, such as Small Caps, Sky Business, Digital Finance Analytics, and many more.
If you are looking for an investment manager who has your best interests at heart, Tony is the man for you. https://tonylocantro.com/
Tony Locantro’s Carnivore Transformation! https://youtu.be/FV0TWDeOG8E
Original show recording here: DFA Live Q&A: Tony Locantro: The Everywhere And Everything Bubble, This Time It’s Different! https://youtube.com/live/Tt7vpkujekM
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Digital Finance Analytics (DFA) Blog
DFA Live Q&A Replay: Tony Locantro: The Everywhere And Everything Bubble!
This is an edited version of a live discussion with Head of Investments for Walk The World Funds and Nucleus Wealth, Damien Klassen. As we start the new financial year, how are the markets looking and what are they key trends ahead?
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Digital Finance Analytics (DFA) Blog
DFA Live Q&A HD Replay: Investing Now: With Damien Klassen
The ABS released their latest data on Household Wealth in the March 2024 quarter today. They say in aggregate terms, household wealth was up 2.7% in the March quarter, or $431 billion dollars.
The value of assets is skyrocketing at the moment, but incomes are hardly growing. So if you’re lucky enough to own any assets (like a residential property, or superannuation savings), your wealth is likely increasing. But if you don’t own any assets, you’re missing out.
So, the story continues, with asset prices continuing to swell, in response to policy from Central Banks and Governments, but there are two questions to consider, first will the asset growth continue, or are we reaching levels where the higher for longer interest rates will start hitting home and second, what of the growing number of households with zero assets, and a cash flow deficit.
While superficially the ABS numbers might sound promising, actually they tell a sad tale, of asset inflation, but one which few want to recognise. At least for now.
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This is an edited version of a live discussion, in which I discuss the latest from the financial markets with Damien Klassen, Head of Investment at Nucleus Wealth and Walk The World Funds. How have earnings season turned out, and where might the markets go next. How will the tussle between Bonds and Stocks play out?
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Digital Finance Analytics (DFA) Blog
DFA Live Q&A HD Replay: Investing Now: With Damien Klassen
