Global Asset Allocation Viewpoints and Investment Environment by T. Rowe Price Australia Investment Committee, as at 31 May 2023.
MARKET PERSPECTIVE
Macroeconomic outlook remains mixed as data has been surprising to the upside, despite evidence of tightening financial conditions that are still expected to weigh on economic growth in the...
Comments from Erik Weisman, Chief Economist and Portfolio Manager, MFS Investment Management
The Fed is right where it should be right now. Congratulations are in order, as the central bank has managed to increase interest rates to its desired target and largely price out cuts for the rest of the...
In Brief
Equities tend to wake up late to recession risks.
A buildup of short-term corporate debt should weigh on profits as borrowing costs rise.
It’s probably a good time for investors to stress their cash flow models.
Financial markets are sending mixed signals. The US Treasury market, inverted at...
Private credit in the investing space is a growing market where senior secured debt, asset-backed lending, structured and project finance, mezzanine debt and other forms of unsecured debt happen and exist across a wide range of underlying asset classes.
Attractive returns are available in private markets through simply providing the...
By Pilar Gomez-Bravo, Co-CIO Fixed Income, MFS Investment Management
Lending standards have tightened in the wake of the turmoil in the banking sector in the US and Europe.
Market commentators are focused on whether tighter financial conditions will prompt the Fed to stop raising rates, raise them by less...
Andrew Canobi, Director Franklin Templeton Fixed Income, says that the contrast couldn’t be starker between Australia and the American GDP growth.
“In Q1, 2023 the US economy grew at 1.3% on an annualised basis. Forecasts for Q2 are lower but still positive. Next week, we get the equivalent Q1 GDP...
From Seema Shah, Chief Global Strategist, Principal Asset Management.
A deal to suspend the U.S. debt limit has finally been agreed, putting an end to a months-long distraction for investors. Now, the U.S. Treasury is scrambling to replenish its cash balance, and market expectations for the rate outlook are seeing...
Dispelling Popular Beliefs Summary
For fixed income investors, the current macroeconomic environment presents uncomfortable choices, with policymakers walking a thin line between combatting inflation and averting (or at least mitigating) the recessions that often follow rate rises.
Market participants face a slew of competing concerns:
Rising rates will hurt the asset...
As the US President Joe Biden and House Speaker Kevin McCarthy reach an in-principle agreement to finalise a budget agreement to raise the $US31.4 trillion ($A48.1t) debt ceiling, Stephen Dover, Head of Franklin Templeton Institute presents his views on the current US debt challenge and the long-term implications for...
