Alan Kohler is back from his week off and raring to go, and starting this Overview with a long look at Trump and the trade war, in the light of last night’s new tariffs on US$34 billion worth of imports from China. It’s now clear that what Alan thought wasn’t such a risk to markets, now is, and the parallels to 1929-30 are very uncomfortable.
There are other clouds too: the chance of higher US inflation along with potentially more aggressive Fed rate rises than the markets are currently pricing in. Alan explores those in detail. Locally, on the other hand, our markets may actually be set to continue the recent good run after a nine-year cycle of underperformance, and small caps may do best of all.
Alan includes some analysis on Smiles Inclusive which he wishes he’d read before my interview this week with CEO and founder Mike Timoney. Alan has also further elaborated on some questions on growth and value from the Live Q&A this week.
Finally, Alan has passed on six points from an analyst roundtable presented by BHP’s relatively new chairman Ken McKenzie.