Market Watch provides a monthly update on the investment themes that influence returns from well diversified portfolios like ipac’s.
Each edition includes a brief overview of a key issue that has been a focus for investors. This month we look at what has been happening in the United States that has led to large swings in share markets. Financial markets, including Australia, still take their lead from sentiment in the US. Interestingly, the US was still seen as a safe haven by global investors with strong demand for US bonds despite the debt ceiling debates and the US credit downgrade in August.
Meanwhile, corporate profits in the US continued to outperform with 78% of S&P 500 companies reporting June quarter earnings that beat estimates. This highlights that below the negative headlines is a very positive corporate environment.
To find out more please read Market Watch, review of July 2011.