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)

Australia Industrials / Thematic (Sector/Industry)

<ul><li>A recent speech from Vice Chairman Stanley Fischer suggests that the secular decline in the neutral rate of interest is guiding the Fed’s view and internal debate around policy normalization.  Fischer cites a number of developments that have contributed to lower real interest rates, including the low capital intensity of the IT sector, the demographics of ageing and high savings rates in EM.</li><li>To the extent that these structural shifts are long lasting, Fischer suggests this supports the case for the neutral rate remaining low for the policy relevant future.   This represents a hint that growth in the US economy might remain tepid for some time and that inflation will remain low thanks to the long lasting powerful impact of excess desired saving over investment intentions.</li><li>If Fischer is right that the saving-investment imbalance is expected to persist and hold down the neutral rate of interest for the foreseeable future, then the new policy normal of low and slow should provide an environment conducive to continued strong returns from listed Australian infrastructure stocks - notably SYD, TCL and APA - despite the fact their valuations remain stretched.  Investors should treat any pull-backs in these stocks as a buying opportunities</li></ul><p> </p>

A recent speech from Vice Chairman Stanley Fischer suggests that the secular decline in the neutral rate of interest is guiding the Fed’s view and internal debate around policy normalization.  Fischer cites a number of developments that have contributed to lower real interest rates, including the low capital intensity of the IT sector, the demographics of ageing and high savings rates in EM.To the extent that these structural shifts are long lasting, Fischer suggests this supports the case for the neutral rate remaining low for the policy relevant future.   This represents a hint that growth in the US economy might remain tepid for some time and that inflation will remain low thanks to the long lasting powerful impact of excess desired saving over investment intentions.If Fischer is right that the saving-investment imbalance is expected to persist and hold down the neutral rate of interest for the foreseeable future, then the new policy normal of low and slow should provide an environment conducive to continued strong returns from listed Australian infrastructure stocks - notably SYD, TCL and APA - despite the fact their valuations remain stretched.  Investors should treat any pull-backs in these stocks as a buying opportunities 

Environmental Clean Technologies Ltd (ECT AU)

Southern Cross Electrical Engineering (SXE AU)

Infrastructure Assets to Benefit from the New Normal of Low and Slow