QuietGrowth Blog

QuietGrowth notes on investing No. 2

QuietGrowth - Notes on Investing and Economics No. 2

There is a growing sense of uneasiness among the people. The year 2020 has not been kind for many. Disasters, tragedies, tensions and now a virus pandemic have occurred in 2020. These have affected the sentiment of the people, and this sentiment is significant to the act of investing. (more…)


How will you kick your finances into gear this International Women’s Day?

QuietGrowth - Kick Your Finances into Gear this International Women’s Day

On March 8th, women all around the world will be celebrating International Women’s Day and this year’s theme is “Press for Progress.” The day is a call to action for everyone to get involved with working toward social, political and financial gender parity, whether it’s by joining a global movement, or making changes in your own life.


Should we worry about the Shiller PE Ratio?

Shiller Earnings to Real-Bond-Yield Gap

The rise in global equity prices in recent years has led to continued concerns over valuation levels. One indicator that appears to cause endless nervousness is the so-called “Shiller” PE ratio, which considers US stock prices relative to the rolling 10-year average level of earnings. As this note demonstrates, however, the Shiller PE ratio has proven to be a poor short-run market timing tool. And while it has proven to be a reasonable guide for likely longer-run returns in the past, allowance today needs to be made for the large structural decline in interest rates.


Left in the dirt: What’s driving our sharemarket performance?

Left in the dirt: What’s driving our sharemarket performance?

The Australian sharemarket has struggled to match the performance of global peers in recent years. While a number of theories have been put forward to explain our relatively poor returns, this note suggests two factors tend to dominate: trends in export commodity prices and the health of the global technology sector. On this basis, it seems likely our market could struggle against global peers for some time yet.


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