Description
For a show called Signal or Noise, market pricing of late has been full of confusing and contradicting signals.
On one hand, equity markets in Australia and the US pulled back from recent highs. The ASX 200 is tracking at six-month lows while the NASDAQ is off by more than 6% in the last 30 days alone. The US 10-year yield, widely considered the global benchmark for asset valuations, is up 50 basis points in just one month. BCA Research has described the savage sell-off in bonds as indicative of the "start of a financial accident".
Crude oil prices briefly flirted with levels not seen since July 2022. And the US Dollar was once again the safe haven of choice as investors took profits on a gold price that was trading near all-time highs.
And the most remarkable part of all this? There has been no RBA rate hike for four months (and counting, as of writing).
So is this a healthy correction or what the start of a much larger unwind looks like? And if there has been no rate hike for a few months, is this what unprecedented monetary policy really looks like?
To separate what signals are left amongst all the noise, Livewire's Hans Lee and AMP's Diana Mousina are joined by two of Australia's brightest investing minds:
Alexandre Ventelon of Morgan Stanley Wealth Management, and
Anthony Golowenko of MLC Asset Management
Note: This episode was taped on Wednesday 4 October 2023. You can watch the show, listen to the podcast, or read our edited summary here: https://www.livewiremarkets.com/wires/how-to-invest-in-a-market-full-of-confusing-signals/