Only last month share markets in the US and Australia were at record highs. But ever since President Trump ramped up the US-China trade war again at the start of August, financial markets have seen a significant increase in volatility Find out what does this all mean for investment markets.
After the third round of talks made little progress last week, the US/China trade war has escalated badly with tit for tat moves on an almost daily basis by each side. This note looks at the key issues.
As widely anticipated, the US Federal Reserve has cut its key Fed Funds cash rate by 0.25% to a range of 2-2.25%. This is the Fed’s first rate cut since December 2008 and follows nine 0.25% rate hikes between December 2015 and December last year.
On the 2nd of July, we saw the Reserve Bank cut the official cash rate again by 0.25%, pushing rates down to a new record low of 1%. But despite those all-time lows we believe investors can expect rates to fall even further.
There must be some positives around. And there are! So, to inject some balance into the debate around Australia here is a list of positives. They are partly why we don’t see Australia as being about to plunge into recession.
I have been working in and around investment markets for 35 years now. A lot has happened over that time. As someone once observed the more things change the more they stay the same. And this is particularly true in relation to investing. So, what I have done here is put some thought into the nine most important things I have learned over the past 35 years.
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