UNDERSTANDING THE RECENT MARKET VOLATILITY Prepared by: Centrepoint Alliance May 2022 1. Interest Rate and Inflation expectations keep shifting upwards Over the last few months, interest rates have continued to move higher on both the long and the short end. With inflation finally showing its head in the last Australian CPI print, Australian bonds (as […]
How the different asset classes have fared: (As at 31 March 2022) International Equities Unhedged and hedged international equities steadied in the month of March. Unhedged fell 0.87% whilst hedged gained 2.90%. Volatility to the downside has subsided for the time being as markets try to price in the full affects of inflation and the […]
How the different asset classes have fared: (As at 28 February 2022) International Equities Unhedged and hedged international equities exposures again finished down in the month of February. Unhedged fell 5.46% hedged fell 2.72%. Whilst the markets were trending downwards due to the impacts of rising rates and inflation, Russia’s invasion of Ukraine in the […]
MARKETS AND THE PRICING-IN OF WAR Russia/Ukraine War – March 2022 Isaac Asimov — ‘Violence is the last refuge of the incompetent.’ 1. Explanation of the Conflict Over the past few months Russia has been increasing their military presence on the border of Ukraine. A general ramping up of vocal threats led to an eventual […]
How the different asset classes have fared: (As at 31 January 2022) International Equities Unhedged and hedged international equities exposures finished negative on the month of January, falling 2.25% and 5.05% respectively. Over the month we saw a sell-off in technology stocks in the United States as markets priced in a sizable uptick in interest […]
How the different asset classes have fared: (As at 31 December 2021) International Equities Unhedged and hedged international equities exposures finished positive on the month of December, changing 3.98% and 1.73% respectively. Even with high inflation numbers and surging Omicron case numbers, international equities, namely the United States rose to finish the year. A gain […]
International Equities Hedged and Unhedged International equities exposures varied strongly across the month of November changing 3.65% and -1.56% respectively. After moving sharply higher at the beginning of November, fears regarding higher and longer than expected inflation, news on the new COVID variant, combined with continued tapering talks coming the Federal Reserve was the catalyst […]
How the different asset classes have fared: (As at 31 October 2021) International Equities International share markets (unhedged) rose 1.65% in October. Fully hedged international shares rose 5.41% on the month signaling a strengthening AUD across the month. Within the United States, the S&P 500 continues to make new all-time highs as markets in general […]
How the different asset classes have fared: (As at 30 September 2021) International Equities International share markets (unhedged) fell by -3.04% in September. The performance of hedged and unhedged shares is now fairly similar over longer time periods. However, with a weaker A$, unhedged shares are now outperforming hedged over the past 6 and 12 […]
How the different asset classes have fared: (As at 31 August 2021) International Equities International share markets (unhedged) rose 3.09% in August. The performance of hedged and unhedged shares is now fairly similar over longer time periods. However, with a weaker A$, unhedged shares are now outperforming hedged over the past 6 and 12 months. […]