This week\u2019s “trimmed mean” inflation print showed that the RBA\u2019s preferred measure is moving sustainably back into the middle of the 2-3% target band. That\u2019s good news for mortgage holders and equity investors, with the market all but guaranteeing a further 25 basis points cut in August.<\/p>\n
Globally, US earnings season rolled on with Meta and Microsoft hitting it out of the park, whilst Apple was a bit more subdued. It was also a mixed week on the trade front \u2013 Trump did a deal with the EU, then hit a host of countries with new tariff rates, some better, some worse, than the baseline. Japan dropped from 24% to 15%, Indonesia fell from 32% to 19%, but New Zealand didn\u2019t fare so well, jumping from 10% to 15%. As for Australia? We played the role of even Steven \u2013 nothing changed.<\/p>\n
Having a less fun time of things this week was Boss Energy. Like an atom, its share price was split in half in a flash<\/a> after flagging challenges in reaching nameplate capacity at its Honeymoon Project, leading to substantially higher cost and lower production guidance for FY26.<\/p>\n Have a great weekend.<\/p>\n Chris Conway<\/a>, Managing Editor, Livewire Markets<\/p>\n Stop calling markets expensive. They’ve just gotten better<\/p>\n Kerry Sun, Livewire Markets<\/p>\n Everyone\u2019s talking about sky-high market valuations – but what if we\u2019ve misunderstood the entire picture? The ASX 200 and S&P 500 aren\u2019t just expensive, they\u2019ve evolved. Australian equities have shifted from resource-heavy to growth-led, with stronger balance sheets, higher margins, and improved capital efficiency. These structural changes may justify higher PE ratios – challenging outdated comparisons to historical averages. This wire explores whether elevated valuations reflect risk\u2026or resilience.<\/p>\n LEARN WHY<\/a><\/p>\n Have ASX-listed debt LITs delivered on their promises?<\/p>\n Daryl Wilson, Affluence Funds Management<\/p>\n Fixed income LITs have gained traction over the past five years, offering attractive yields and access to skilled credit managers. Income delivery has been strong, with yields averaging 7\u20139% over the past year – well above cash rates. Net tangible asset (NTA) preservation has also held up, although most funds haven\u2019t yet faced a full credit cycle or recession. The main challenge remains share price volatility, which can significantly affect total returns, often driven by broader market swings. While communication from managers has improved, investors must remain informed and avoid reacting emotionally to price dips in order to fully realise the long-term benefits these vehicles can offer.<\/p>\n EXPLORE LITS<\/a><\/p>\n Top 3 Wires this Week<\/p>\n Here are the weeks top viewed or liked wires by our subscribers:<\/p>\n Equities<\/p>\n You’re fired! 6 ASX stocks to fire, 6 to hire<\/p>\n <\/a> Equities<\/p>\n 8 ASX stocks, 4 top fundies – what they\u2019re buying (and avoiding)<\/p>\n <\/a> Equities<\/p>\n IML’s top 5 picks from the ASX 100 most consistent dividends payers<\/p>\n <\/a><\/p>\n Some of the best wires from our Contributors this week:<\/p>\n Equities<\/p>\n Housing and defence stocks set to shine<\/p>\n <\/a> Education<\/p>\n Scared of investing when the stock market is at an all-time high? You shouldn\u2019t be<\/p>\n <\/a> Equities<\/p>\n A return to fundamentals<\/p>\n <\/a>Chart of the Week: Buying shares at all-time highs: A bad idea?\u00a0<\/p>\n Past performance is not a guide to future performance and may not be repeated. Data January 1926-December 2024. Stocks represented by Ibbotson\u00ae SBBI\u00ae US Large-Cap Stocks, Cash by Ibbotson\u00ae US (30-day) Treasury Bills. Source: Morningstar Direct, accessed via CFA Institute and Schroders<\/p>\n This week, I joined my local FIRE group for a discussion on investing, and the hot topic was whether it\u2019s smart to keep buying when markets are at all-time highs. Naturally, the group split into two camps. The bears argued that record highs must mean markets are overvalued, and that it\u2019s safer to sit on the sidelines. The bulls countered that new highs often reflect strong economic growth and rising corporate profits. The data supports the bulls.<\/p>\n In this great wire<\/a> by Duncan Lamont, Head of Research and Analytics at Schroders, he notes that markets are at an all-time high about 31% of the time. His chart (below) shows that, on average, 12-month returns after an all-time high are 10.4% ahead of inflation, compared to 8.8% when the market wasn\u2019t at a high – with positive returns persisting over longer periods. One comment from the group really stuck with me: most of us invest automatically through pensions, which are heavily allocated to growth assets. That capital doesn\u2019t sit still. All-time highs aren\u2019t always a red flag. Sometimes, they\u2019re just business as usual.<\/p>\n Vishal Teckchandani<\/a>, Senior Editor, Livewire Markets<\/p>\n Weekly Poll<\/p>\n Knowing that returns after all-time highs are historically strong, what would you do?<\/p>\n a)\u00a0Keep buying as usual – stick to the plan<\/p>\n b) Reduce my regular investment – playing it cautious<\/p>\n c) Wait for the dip – it\u2019s bound to come<\/p>\n d) Invest more – the data speaks for itself<\/p>\n e) Shift to cash or defensive assets – time to protect<\/p>\n VOTE NOW<\/a><\/p>\n LAST WEEKS POLL RESULTS<\/p>\n When asked how much passive investing contributes to CBA\u2019s rising share price: 60% said it’s a factor but fundamentals will prevail, 29% called it a major driver, 10% downplayed its impact, and 1% flagged potential negative consequences.<\/p>\n SEE RESULTS BREAKDOWN<\/a><\/p>\n Get the Weekend Edition straight to your inbox<\/p>\n Popular and exclusive content from the week sent every Saturday morning<\/p>\n SUBSCRIBE TO TRENDING ON LIVEWIRE – IT’S FREE<\/a><\/p>\n Other Newsletters across our network<\/p>\n Trending on Livewire Daily<\/a>: Get the best of Livewire by signing up to our popular daily newsletter<\/p>\n Market Wraps<\/a>: Concise market recaps of the ASX’s most critical events 2x daily<\/p>\n<\/p>\n
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