I can’t believe that it was only three months ago that global equity markets were in free fall and the US Federal Reserve was pressing ahead with their tightening campaign – raising rates. Locally, markets were convinced that the next move in rates by the RBA would be up but not till 2020.
Somehow it seems like a lot longer than that; perhaps time loses its meaning when you watch the same Brexit House of Commons voting circus play out on a repeat loop, Donald Trump continuing to tweet seemingly each day on the trade talks or some other random topic or you listen to too many economists changing their views based on the most recent economic data releases. In any event, that’s why I like this job – there’s always something changing and despite the various uncertainties across the globe, equity markets are once again close to record highs and yields at multi-year lows.
The US Federal Reserve is now on hold and according to the futures markets, the RBA is set to cut rates before year-end.