Australian Investment Blog

If we’re being honest with ourselves, the world isn’t doing great. There are many obvious imbalances between asset pricing, the uncertainties and unpredictability of Quantitative Easing and how that will eventually play out, the outlook for currencies in an environment of massive central bank intervention, commodity prices – which are heavily linked to currency moves as discussed yesterday and obviously corporate earnings – which in the longer term drive share prices.

There’s no doubt, it’s a hard environment to operate in and with cash rates at such low levels, house prices high, bonds prices high (making yields low), the share market still looks pretty appealing given it provides good income, the chance of capital growth if managed properly, and above all, liquidity which is one of the most important aspects when considering an investment.