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Christopher Joye

This Month

Big bears like John Hussman seem to regularly call for a big crash.

Prepare for much more downside risk for listed equities

The correction may only be getting started. Equity markets could easily fall another 20-40 per cent.

It’s a very scary world. Here’s how Australia can make itself safe

As Department of Home Affairs former secretary Michael Pezzullo says, the country is not remotely ready to defend itself. We need to have nuclear weapons.

February

Government spending highest since World War II

Australia’s federal budget has lurched into deficit as public spending surges to its highest level in 80 years.

Bank hybrids have typically paid investors 3 per cent to 4 per cent above bank bills.

Why the RBA rate cut is a very big deal

It might seem like a small rate cut, but this week’s Reserve Bank decision is likely to transform the consumer zeitgeist.

Trump is likely to be dead serious about tariffs.

Trump isn’t bluffing on tariffs. He desperately needs cash

Don’t believe the “hopeium” that Donald Trump is bluffing on tariffs.

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Fund managers are looking long-term as they contemplate another tricky year.

The secrets behind fund incubators’ success

The rise and rise of Pinnacle and its offshoot Scarcity Partners highlights the power of the diversified fund incubator business model.

January

Reserve Bank governor Michele Bullock.

Housing market will welcome RBA rate cuts

The beleaguered residential property market will be one key transmission mechanism through which the RBA’s interest rate relief will affect the wider economy.

Queensland’s debt will skyrocket to $218 billion by 2028, based on the mid-year budget published on Thursday.

‘The numbers are breathtaking’: Qld’s interest bill worth 11 new hospitals

The states’ debt-servicing costs will probably continue to skyrocket as investors demand compensation for their fiscally reckless ways.

The risk/reward trade-off on equity markets is very poor right now, with the equity risk premiums near historic lows.

Bond markets punish imprudent politicians as debt spiral looms

While equity markets have been ebullient, we are having the worst bankruptcy cycle in most developed nations since the global financial crisis.

The Future Fund has been strong on the idea that it is hard for active managers to beat the market.

The key questions for investing in 2025

The last time the US equity market realised two back-to-back years of returns in excess of 20 per cent, it promptly plunged 19 per cent.

December 2024

Elon Musk has won extraordinary power in the new Trump administration.

The greenback was the trade of the year, the next one is up to Musk

Getting diversification across currencies was one of the best trades of 2024. But the year ahead is complicated by the advent of the new Trump regime in 2025.

The Fed’s humiliating reversal is toxic for stocks

The US central bank’s belated acknowledgement of re-accelerating inflation and the risks flowing from Donald Trump’s policies could trigger a sustained market downturn.

Reserve Bank governor Michele Bullock will probably cut rates before the federal election.

Why the RBA will follow the Fed’s election playbook

The Reserve Bank of Australia appears set to ease interest rates in a move that will support its political masters heading into a problematic poll.

Public sector to blame for Australia’s poor productivity

Australia’s economic story has become dominated by public rather than private activity as politicians spend crazy amounts of money to buy votes.

November 2024

Reserve Bank governor Michele Bullock is stubborn in a good way.

Could the RBA cut interest rates in February?

The latest inflation readings imply that there is a possibility the Reserve Bank of Australia could start easing early in the new year.

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Shareholders will back growth stories, but only if they trust management can deliver them.

Bank stocks look 58 per cent overvalued

Aussie bank stocks are the dearest in the developed world, according to Barrenjoey. It’s no wonder retail investors are heading for the exits.

Federal Reserve chairman Jerome Powell has delivered another rate cut that will push shares higher.

Why interest rates could be higher under Trump

New research finds that Trump’s policies could drive rates much higher than markets are assuming.

Fed chairman Jerome Powell will face Donald Trump’s inflationary policies just as he starts cutting rates.

Markets celebrate a Trumpian revolution

While investors are rejoicing at the prospect of a business-friendly Trump administration, it will also amplify long-term inflation and asset pricing risks.

A comprehensive Trump victory, which would presage sweeping policy changes, could furnish interesting trading opportunities.

Heed the alarming writing on the wall left by bond bandits

Equity investors are slowly waking up to the risk of Donald Trump returning to the White House.

October 2024

Trump v Harris.

US election will drive long-term Aussie interest rates

Markets should keep a close eye on where yields land after Donald Trump or Kamla Harris claim victory on November 5.

Original URL: https://www.afr.com/by/christopher-joye-j7gce