Fat Prophets

Xi Jinping's Politburo makes bold moves for 2025! In a major shift not seen in nearly 14 years, Beijing pledged to adopt a "moderately loose" monetary policy and implement a "more proactive" fiscal strategy, signaling plans to widen the fiscal deficit to support economic recovery. What does this mean for global markets? #investing #marketupdate https://lnkd.in/gagG9hxn

Yesterday investors’ nerves were somewhat frayed by Trump’s announcement of plans to impose fresh 25% tariffs on goods from Mexico and Canada while adding another 10% tariff on Chinese goods (well below previous threats in China’s case) from day one of his presidency. The big question: How did global markets respond to this bold move? The U.S. faces a fiscal challenge, with $5 trillion in revenue falling short of $7 trillion in spending, potentially driving debt above $50 trillion in the next decade. Addressing this will require significant policy changes, but progress may be difficult without a crisis in the bond or currency markets. Easier said than done. #Tarriffs #Investing Read more: https://lnkd.in/gCt2vQj2

In the latest interview with ausbiz, our CIO Angus Geddes discussed key market movements and investment opportunities. He shared insights on: ⚡ Recent Federal rate cuts, rising bond volatility, and a potential pivot by the Fed ⚡ US election impacts, with inflation concerns driven by Trump's proposed tariffs and tax cuts, expanding the US deficit ⚡ Strong labor market and higher bond yields signaling aggressive easing ⚡ Investment ideas: Japanese banks like Sumitomo Mitsui Financial Group, and gold and silver entering a bull market for 2025 Watch the full interview here to learn more! https://lnkd.in/gN6YFR2S

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Is gold breaking its historic relationship with the US dollar? Gold has hit a new high of US$2,734, while the Dollar Index surged to 104, rallying 4%. Typically, gold falls as the dollar strengthens—but not this time. Could rising bond yields and rates push this trend further? Find out how it could impact your portfolio in our latest update from CIO Angus Geddes. Click to read! https://lnkd.in/gwfpz56q

Supporting the global disinflationary trend has been a big drop in the oil price, which has pushed energy costs lower. What are the factors behind this?   Saudi Arabia is warning that it could “flood the market” with oil supply. What could this mean for WTI Crude Oil prices and the rate cut decisions of global central banks?   Check out the latest update in our FatChat by CIO Angus Geddes https://lnkd.in/gGvK2JTQ

In recent interview with ausbiz, our CIO Angus Geddes noticed a big shift in Chinese and Hong Kong stocks. 📌 The recent rally in these markets is likely due to profit-taking following substantial gains. 📌China stimulus: The Chinese government is expected to introduce a second round of stimulus measures to stabilize the floundering economy and stock market. 📌Investment opportunities: Despite the recent rally, benchmarks in China and Hong Kong remain below levels from 4-5 years ago, presenting a potential value opportunity. 📌Stocks to watch: Tencent (HKG: 0700) and Alibaba (HKG: 9988) are recommended due to their resilience, growth, and relatively cheap valuations. 📌Australian resources: The expected stimulus from China could positively impact Australia's resource sector, making stocks like BHP (ASX:BHP) and Rio (ASX:RIO) attractive investments. Watch the interview: https://shorturl.at/V0oMB

ASX Plummets as Growth Fears Mount Australian shares endured their sharpest drop since the bloodbath in early August after weak US manufacturing data renewed global economic fears. Declines were broad-based, with local miners and energy stocks being clobbered. The Australian GDP print pointed to a rapid economic slowdown, with GDP per capita for the June quarter going backwards for the sixth consecutive quarter. This is the worst growth backdrop since the early 1990s recession. Only government spending, public sector hiring, and immigration have prevented a full-blown recession. 📌 Check out Today's Market Update: https://lnkd.in/g3vq2C6H

Australian Retail Sales Hold Steady in July! Retail sales were unchanged in July after a 0.5% increase in June. Despite expectations for a slight rise, spending has leveled off, maintaining higher turnover levels from mid-year sales. Why does this matter? The Reserve Bank is watching closely, hoping for a pullback in household spending to help curb inflation before thinking about lowering interest rates. However, with tax cuts effective from July 1, there’s concern that consumers might choose to spend more, adding pressure to the inflation battle. What's next? Keep an eye out for the June quarter GDP report, set to be released on September 4. It will provide more clues about the economic outlook! 

Michael Hartnett, Bank of America's Chief Strategist, is predicting a surge in gold prices due to interest rate cuts and potential inflation. “Investors should do what central banks are doing…and buy gold...The interest rate cuts from the Federal Reserve that are coming could pose a risk to stoking a rebound in inflation next year…real assets, like gold, have historically performed well during bouts of inflation. Gold is the only asset that’s outperforming US tech shares.” We believe we're on the brink of a major cycle for gold and precious metal mining stocks. While gold has reached new highs, the mining shares are still undervalued. Read our market recap here: https://shorturl.at/qKkeK