Global markets rose this week, as hopes for further monetary stimulus and a potential ceasefire in the trade war buoyed investor sentiment. Stocks rallied on Monday morning after Donald Trump and Xi Jinping agreed (for now at least) not to announce any new tariffs in the near future. The party continued midweek after weak economic data in the US and Trump’s nomination of two monetary doves to the Federal Reserve board boosted the prospects of an US interest rate cut in the near future. It has been quite a ride for investors in US bonds in recent years, with yields now below 2% for the first time since the Trump election.
In local news, Australian policy makers are hell-bent on kickstarting the economy. On Tuesday afternoon the RBA lowered interest rates by 0.25% for the second consecutive month, with RBA governor Phillip Lowe vowing to “adjust interest rates again if needed to get us closer to full employment and achieve the inflation target”. Canberra backed that up with a wave of tax cuts, which we will cover in next week’s TW3. We suspect that our leaders may be pushing on a string, and hope that this isn’t nothing more than rearranging chairs on the titanic.
Stanford Brown Investment Update
Please join us at the Kirribilli Club on July 24th as our Chief Investment Officer Ashley Owen shares his outlook for global shares in 2019! You can RSVP here or email [email protected] to confirm your attendance!
Property Prices Show Pulse
Much to the lament of the millennial writing this article, the worst of the property downturn in Sydney appears to be over, with the local market recording its first gain (albeit a minute one) in 2 years!
The combination of the RBA cutting rates and Labor’s Federal Election defeat has resulted in a dramatic swing in sentiment within the property market. With the RBA likely to continue cutting rates and high ranking government officials pushing for fewer restrictions on lending, the property party is likely to kick-on for the foreseeable future!
Steve’s Legacy Lives On
Here is a photo of Steve Irwin and his son Robert doing what they do best – already a cute photo, right?
But here’s the kicker: they’re feeding the same crocodile, at the same place, 15 years apart. Who’s cutting onions?!?!
Need A Read?
In the colder months there are few things nicer than rugging up and devouring a good book. If you’re in need of a recommendation, the finalists of Australia’s top literary prize have been announced! Critics have praised the great diversity of nominees for this year’s Miles Franklin award, so there is bound to a book for everyone!
- The Lebs, Michael Mohammed Ahmad – A coming of age novel following the life of Bani Adam, a first generation Lebanese-Australian growing up in Punchbowl during the peak of racial tensions in the early 2000’s.
- A Stolen Season, Rodney Hall – Centred around the physical and emotional impact of the Iraq war on a young man and his wife, with other central characters dealing with their mistrust of men and the unique pressures of being born into aristocracy.
- A Sand Archive, Gregory Day – A man stumbles upon an obscure book about the construction of the Great Ocean Road in a second-hand book store, where he quickly becomes fascinated by the curious life of the book’s author.
- The Death of Noah Glass, Gail Jones – An art historian is found dead in his swimming pool. A day after his funeral, his grieving children are informed by police that their father is a suspect in the theft of a sculpture from a museum in Palermo. The protagonists’ ensuing search for answers tells a story of grief, the complexities of family ties, and the power of memories.
- Too Much Lip, Melissa Lucashenko – Indigenous woman Kerry Salter returns to the regional hometown that she has avoided her entire adult life after her grandfather falls ill. Upon Salter’s return old childhood traumas are revived, and a development proposal on her family’s traditional land prompts a longer stay than previously hoped.
Dyschronia, Jennifer Mills – The residents of a small coastal town wake up to discover that the ocean has disappeared. The ensuing chaos is used to delve into the challenges facing regional towns in a hypercompetitive globalised economy.
Tweet of the Week – Timeless Advice!
Pic of the Week
A happy 4th of July to all of our American readers!