As much as we all prefer to read black & white articles about stocks going to the moon or forecasting an impending crash... it is never that simple.
Below is a list of various pockets to the market which showing interesting facts at the moment.
The more you think you know, the more close-minded you will become.
Bearish facts
Chinese Junk Bonds are at the highest level since the onset of the pandemic
Driven largely by Evergrande Group’s liquidity issues; the appetite for sub-investment grade debt is weakening in China
Iron ore volatility amid attempts for steel production to slow
Following an announcement of China trying to curb its steel production by 10%; iron ore prices have slowed
Early signs that crypto flows are coming back
Here at Narrowboat, we are not entirely convinced about crypto and remain dubious about its future. Driven by Solana; flows into crypto are slowly regathering pace.
Bullish facts
Australian financials (excl. Banks) still offer a decent forward yield New Zealand are gearing up for growth & inflation again
Now the banks represent a decreasing part of the Australian financial landscape, understanding what the insurers, wealth managers, platforms (e.g. NWL) are doing is increasingly important
Below is the forward yield for the major players
Aussies still have more savings than COVID-19
After a consumer boom in late 2020/21, the savings rate for most Australians is still high. Of course, this is not to say SMEs have not felt the pinch of lockdown but they on average have $$ to ride out this tough period
New Zealand are pricing in a rebound from borders opening up
Yes rate rises are generally bad, however, the fact that there is a (slightly) more hawkish outlook on NZ rates actually suggests there is growth as their borders appear to be opening in the next 3-6 months
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