2018 was marked by a notable increase in market volatility and a decline in global economic growth from its previous high in the first part of the year. This has been reflected in a pull-back in most equity markets and an increase in expected volatility. This article is intended for licensed financial advisers only and […]
The housing market continues to dominate the headlines in Australia. Housing prices fell 4.8% in 2018 according to CoreLogic, driven by sharp falls in the Sydney (-8.9%) and Melbourne (-7.0%) markets. Price falls are now also evident in the middle and lower segments of the market, while auction clearance rates and volumes are trending lower. […]
This article is intended for licensed financial advisers only and is not intended for use by retail investors. Markets have continued to experience volatility over the month. The US market in particular has endured significant volatility with technology stocks bearing the brunt of the turbulence. Until recently the tech sector was a significant driver of […]
While consumer spending continues to propel the US economy, GDP growth slowed in the September quarter, with a conspicuous downturn in fixed investment. Recent signs of weakness in the housing sector have raised fears that this downturn could continue through the December quarter, but more importantly markets are concerned that Fed tightening could exacerbate the […]
The past decade has seen managed accounts transform from a technologically viable but largely unexplored solution to one that is now fully embedded in financial advice models. A key benefit of managed accounts is the efficiency they bring to financial advice practices. A large component of this efficiency relates to the fact that once a […]
For some time, we have flagged that volatility in markets has been subdued, underpinned by a wave of liquidity being pumped into global economies by central banks in the form of Quantitative Easing (QE). We have seen bond yields trade at historic lows and the subsequent low interest rate environment has led to increasing debt […]
The managed account model is at the centre of a nascent revolution in financial advice. As pressures build on traditional advice businesses, the efficiencies offered by managed accounts have led advisers to rethink how they deliver advice and manage investments on behalf of clients. But while there are clear opportunities, the drive to shift to […]
Volatility has died down since the dramatic spike witnessed in February 2018, but a return to near-historic lows should raise eyebrows among investors. The S&P/ASX 200 VIX Index, a measure of implied volatility in the Australian share market, closed last week at 9.79 points, falling back below double-digits and a far cry from February’s high […]
In the wake of Facebook’s plummeting share price, there has been much talk of the so-called FAANG shares and their earnings performance. But investors should not be misled by the market’s bucket mentality, which has a tendency to group together certain stocks, often for superficial reasons. The recent round of earnings announcements shows that the […]
One of the issues Lonsec has discussed within our investment committee process is the potential rise in market volatility and what it means for portfolios. Our view is that volatility is on the rise and that the likelihood of downside risk has increased. There are various ways of incorporating such views within the context of […]
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