Monthly Archives: January 2016

The Problems Facing Commodity-Exporting Countries like Australia

A common question from Australian investors in recent years is “Why hasn’t the Australian stock market done as well as the US stock market?” Since the GFC bottomed out in March 2009, the S&P500 Index (excluding dividends) has tripled from 676 then to 2043 now, setting new records, whereas the S&P/ASX200 is only up 50% in that time,…
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Emerging Problems in Emerging Markets

Last month we addressed investor concerns about slowing growth in China. This month we look at how trends in other emerging markets might affect Australian investors. The core of the problem is that growth in emerging markets, which has been strong for a decade, is now slowing down, mostly because of the way that the…
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Storm Warnings for Global Bond Markets

Most Australian investors have watched the recent gyrations in US and European bond markets with a feeling of relief that all this excitement doesn’t affect them, because they don’t own any US or European bonds. They have been watching the Grexit turmoil with similar emotions, because they don’t own any Greek bonds or shares. It…
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