Only 40 stocks in the ASX 200 are in the green this month. Markets are blaming rising bond yields. So where do things stand? Will interest rates remain ‘higher for longer’ and further depress stock valuations? Or will the economy buckle under the high interest rate regime, forcing central banks to cut rates? And will that really be a boon for markets (hint, no, it won’t). Are we entering a new bear market? And is there still room for a skilled stock picker to snag bargains? Greg Canavan and I covered all this and more in the latest episode of What’s Not Priced In.
Why Are Australia’s Petrol Prices So High?
Retail prices are soaring. But why? The answer lies in Australia’s dwindling refining capacity. It turns out we are at the whim of global markets. What does this mean in the long-term? Read on to find out…
The Cure for Inflation…And Its Side Effects
All together now, interest rates are staying ‘higher for longer’. The US Fed is dead set on taming inflation and rising long-term yields show investors think advanced economies can bring about disinflation without recession. But the ‘higher for longer’ crowd is grossly underpricing the risks of a sharper economic slowdown. The cure for inflation always has unpleasant side effects. Just ask Milton Friedman.
Are Most ASX Stocks Efficiently Priced?
Are most stocks on the ASX fairly priced? How efficient is the market? I put market efficiency to the test by selecting five ASX 200 stocks at random to see whether their intrinsic value approximates their market price. Read on for the results…
What’s Not Priced In #17: Interest Rates, Lower and Sooner?
Consensus is now firming that interest rates will stay ‘higher for longer’. But when consensus forms in markets, it’s time to listen to your inner contrarian. The mantra of ‘higher for longer’ may be superseded by ‘lower and sooner’. What’s not priced in? As household savings dissipate and consumer demand falls, central banks could end up cutting more than expected in 2024…
The Debate Over the Cost of Renewable Energy
The Department of Industry, Science and Resources thinks Australia is ‘set to become a renewable energy superpower’. Our ‘vast coastline’ and ‘clear skies’ are ideal for solar and wind. These natural endowments mean Australia has the ‘second-highest potential for solar power production in the world’. All this is great. But how much of that potential should Australia realise? And how quickly? Will it be worth it?
