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Wall Street rules

This week's share market action suggests US interest rates may not rise as fast as many predict but the US dollar will certainly rise and this will affect our share market.

11 Mar 2015
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More Fed induced pain for the share market

After a brief pause yesterday, the share market's valuation response to Friday's strong US employment report will continue this morning. There are two drivers behind the US stock market sell-off in response to Friday's jobs number. The first is valuations. Markets are positioning for the possibility of higher interest rates and many world stock markets go into this adjustment from a starting point of relatively high PE values meaning making them vulnerable to a pull back...

11 Mar 2015
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Gold's long decline is the real story

Equity markets started off this year by falling. They rallied in February, working their way back into the green. The Standard & Poor's 500 Index now is up about 1 percent for the year. Gold has traveled the opposite path...

10 Mar 2015
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A new world of yield

The prices of traditional high-yielding companies such as REITs (left-hand side of the chart) have been bid up, driving down yields. Perceived safe yielders such as utilities and insurance companies have concentrated on maximising their dividend payments.

10 Mar 2015
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In the balance

US shares rose as Apple reminded US investors of the importance of technological innovation to profitability and the European Central Bank launched its QE bond buying program.

10 Mar 2015
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