Founder Evidente. Top rated quantitative analyst, Evidente

Sam Ferraro

Founder Evidente. Top rated quantitative analyst

Evidente

Evidente is an independent financial education firm that delivers innovative financial advice to wholesale investors, including active long only funds, hedge funds, pension funds, and sovereign wealth funds, in Australia and globally.  Drawing on academic research in asset pricing, behavioural finance and portfolio construction, Evidente provides wholesale investors with commercial solutions to stock selection and asset allocation decisions across equities and other asset classes.

Thematic (Sector/Industry)

The RBA confounded market expectations by leaving the overnight cash rate unchanged at 2.25% at yesterday&rsquo;s Board meeting. But many will interpret the RBA's adoption of an explicit easing bias as a harbinger for further out-performance of high yielding stocks. On closer inspection, I show that high yielders have endured a period of under-performance in recent years. Both valuation theory and price patterns suggest that investors perceive high yielders to be riskier than low yielders. Consequently, the under-performance of high yielders reflects the fact that investors have eschewed risk from their portfolios. For investors seeking to invest in high yielding stocks with strong price momentum outside of the banks, utilities and REITs,&nbsp;only three&nbsp;candidates meet these criteria at present: CCL, IFL and JBH.

The RBA confounded market expectations by leaving the overnight cash rate unchanged at 2.25% at yesterday&rsquo;s Board meeting. But many will interpret the RBA's adoption of an explicit easing bias as a harbinger for further out-performance of high yielding stocks. On closer inspection, I show that high yielders have endured a period of under-performance in recent years. Both valuation theory and price patterns suggest that investors perceive high yielders to be riskier than low yielders. Consequently, the under-performance of high yielders reflects the fact that investors have eschewed risk from their portfolios. For investors seeking to invest in high yielding stocks with strong price momentum outside of the banks, utilities and REITs,&nbsp;only three&nbsp;candidates meet these criteria at present: CCL, IFL and JBH.

The yield trade and the RBA's easing bias: More than meets the eye

Macroeconomics

As with most macroeconomic releases, there was something for everyone in today’s December quarter CPI. For the doves, the precipitous fall in petrol prices has pulled down the headline CPI which is around 1.6% higher than a year ago. For the hawks, the various measures of core or underlying inflation came in stronger than expected, growing by 0.66% in the quarter. Nonetheless, on a year on year basis, they remain close to the bottom end of the Reserve Bank’s inflation target range of 2-3%.

As with most macroeconomic releases, there was something for everyone in today’s December quarter CPI. For the doves, the precipitous fall in petrol prices has pulled down the headline CPI which is around 1.6% higher than a year ago. For the hawks, the various measures of core or underlying inflation came in stronger than expected, growing by 0.66% in the quarter. Nonetheless, on a year on year basis, they remain close to the bottom end of the Reserve Bank’s inflation target range of 2-3%.

Tame Inflation data and the bond market signal that the yield trade is yet to run its course

Australia

Coca-Cola Amatil Limited manufactures, distributes and sells carbonated soft drinks along with still and mineral waters, fruit drinks, ready-to-drink coffee and tea and flavored milk drinks. The Company also rents and services commercial refrigeration equipment to food/beverage manufacturers.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Coca Cola Amatil (CCL AU)

The yield trade and the RBA's easing bias: More than meets the eye

The RBA confounded market expectations by leaving the overnight cash rate unchanged at 2.25% at yesterday’s Board meeting. But many will interpret...

Sam Ferraro

Tame Inflation data and the bond market signal that the yield trade is yet to run its course

As with most macroeconomic releases, there was something for everyone in today’s December quarter CPI. For the doves, the precipitous fall in...

Sam Ferraro

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)