Quarterly Newsletter – Are There Implications From Lingering Inflationary Impulses?

Welcome to Auscap’s April 2024 Newsletter titled Are There Implications From Lingering Inflationary Impulses?

** CPD NOW AVAILABLE ** When analysing the outlook for equities, it can be useful to consider the assumptions financial markets appear to be pricing in. Historically we have found that opportunities and risks are most present when the market is pricing in bearish or bullish outcomes respectively that probabilistically are either not that likely to occur or will be brief in duration. Currently there appears to be a correlation between the rally in stocks and expectations that interest rates will fall. Even though these expectations have moderated in recent months, the bond market continues to suggest that rates will fall over the coming 18 months. In this newsletter we try to objectively assess the data that might support this proposition. We also detail the performance and portfolio positioning of the Auscap Funds in March 2024.


Multiple Choice Test - April Quarterly Newsletter 2024

Learnings Outcomes: In this newsletter, we learn to objectively assess the components of the CPI Index, and how that relates to the RBA's target versus interest rates, and the impact that may have on equity markets. This activity meets the guidelines for qualifying CPD, and has been accredited for continuing professional development by the Financial Advice Association of Australia but does not constitute FAA’s endorsement of the activity. 0.5hr CPD is available for this activity.

Question 1(Required)
Even though the market expectations of a reduction in interest rates have moderated in recent months, the bond market continues to suggest that rates will:
Question 2(Required)
The following statement is true:
Question 3(Required)
As at December 2023, the largest component by weight of Consumer Price Inflation (CPI) in Australia is:
Question 4(Required)
Within Housing, inflation is still concerning, running at:
Question 5(Required)
The RBA estimates that at current interest rates approximately what percentage of owner occupier borrowers have a cash flow shortage:
Question 6(Required)
The savings rate in Australia remains positive, albeit:
Please enter your email address so your CPD Certificate can be sent to you