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Vector Insights30 June 2022
Expert’s Choice: Two mistakes in uncertain times
Brad Livingstone-Foggo, Head of Marketing - Australia
Over the last few weeks, in the face of an unknown outcome, every man and his dog has offered an opinion on markets.
Behavioural economists and psychologists have shown that people, even experts in their field, have poor track records of making proper assessments in times of uncertainty.
There are two ways we quickly assess the probability of an outcome and these are susceptible to flaws. An understanding of these can help investors better assess periods of uncertainty and thus lead to better decisions in uncertain environments.
China30 June 2022
China’s Rebound Confirmed – But Will It Last?
by Natalia Gurushina, Economist, Emerging Markets Fixed Income
Read This NowChina’s activity gauges improved further in June, but persistent growth headwinds - which now include a growing global recession risk – might require further policy support, especially on demand side.
Income Investing28 June 2022
Read This NowA year ago, investors were questioning the prudence of the 60-40 blend and no one was predicting that, entering the 2022/23 financial year, they would be increasing their allocation to bonds, but here we are. Bonds are cool again. Prices have plunged, credit spreads have widened and yields have increased, creating potential opportunities for investors looking to increase their allocation to bonds, especially in corporate bonds.
Vector Insights24 June 2022
Dr ETFs or: How I learned to stop worrying and love markets
by Arian Neiron, CEO & Managing Director - Asia Pacific
Read This NowThe rise of index funds and ETFs has coincided with the rise of passive-naysayers who warn investors about all sorts of problems that will be caused by using ETFs and their increasing global popularity. At the height of this fearmongering is the claim that ETFs will cause the next market crash or, at a minimum, they would exacerbate investors’ losses.
Here we are at another market crisis, and there is no evidence that ETFs caused any bubble or distorted any market.
Rather, ETFs are doing exactly what they were designed for, they are efficient trading tools and in some instances mechanisms for price discovery.
As with previous market crises, we predict that Australian investors will continue to increase their adoption of passive investing and ETFs well into the next phase of markets.
Gold20 June 2022
Go with the cash flow
by Arian Neiron, CEO & Managing Director - Asia Pacific
Read This NowMarkets and economic data releases point to an imminent recession, but this recession will be different from the recent past as the Fed grapples with choosing between the fight against high inflation or stimulating growth. It cannot do both and either way gold could possibly win.
China16 June 2022
Read This NowChina is about to join the rest of the re-opened world, with its major cities emerging from COVID lockdowns. Its central bank and government are supporting economic activity and recent price action too presents, in our view, a compelling entry opportunity for investors.
Investing15 June 2022
Expert’s Choice: Avoiding the losses and losing the wins
by Brad Livingstone-Foggo, Head of Marketing - Australia
Read This NowThe stock market has historically delivered higher average returns compared to almost all other forms of investing. Despite this, many are still apprehensive. While the past few weeks may support this apprehension, the facts reveal a different picture. Behavioural economists and psychologists have the answer.