At the point of no return

by Foresight Analytics | Aug 8, 2022 | Market Insights

Key Points:  Our recession lead indicators are flashing red and recession is inevitable. However, it’s still too early to increase the underweight in risk assets. The 2-year bond yield hasn’t begun to price in an easing cycle yet, and this is normally the final nail...

Pulling apart inflation in pursuit of a soft landing

by Foresight Analytics | Jul 21, 2022 | Market Insights

Key Points:  Remain slightly underweight growth assets. Markets fully understand that rising interest rates and inflation create a backdrop for recession. Indeed, in our recent TAA/DAA update we showed how our suite of indicators suggests recession is likely, but it...

DM/EM Equity Market Review – April 2022

by Foresight Analytics | Jul 14, 2022 | Market Insights

Key Points Emerging Market Equity Disappointment Persists: EM equities (in AUD terms) have delivered mediocre returns in both absolute and relative terms. Many active managers with high allocation/ high beta to EM equites have faced major headwinds in their...

Factor Performance Analysis: The Return of Quality, Growth and Momentum Trio

by Foresight Analytics | Jul 14, 2022 | Market Insights

Key Points Market Background: Developed markets rallied as the initial volatility sparked by Russia’s invasion of Ukraine subsided in most markets throughout March. US and Australian equities made significant gains with the S&P 500 and All Ordinaries up 3.57% and...

Dynamic Asset Allocation Update

by Foresight Analytics | Jun 27, 2022 | Market Insights

Key Points: Raise the bar on cash and alternatives. Move slightly underweight Growth assets and maintain the large underweight in Defensive assets. The correction in equities, thus far, is consistent with those seen just prior to recessions. A tactical rally is...

Latest Asset Allocation Update – Yield curve inversion: Don’t panic, but begin to prepare

by Foresight Analytics | Apr 14, 2022 | Market Insights

Key Points:  Stay overweight risk assets, despite US yield curve inversion. It’s not only the US yield curve that is signaling a US recession. Key business surveys are also beating the same drum. However, these signals lead the large equity market drawdown associated...