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.

Equity Bottom-Up

iShares MSCI Australia / Equity Bottom-Up

<ul><li>The banks and supermarket retailers dominated financial market developments in Australia over the past week.&nbsp; Investors were disappointed by full year results from ANZ and NAB, with the stocks falling by 6-7% over the week, well below the 2% weekly decline in the ASX200.&nbsp; &nbsp;Evidente discusses (again) why the lift in capital requirements does not amount to higher input costs for the banks.&nbsp; Analysts have downgraded the sector&rsquo;s dividend outlook for a while now, due primarily to the fact that the majors are no longer receiving the big free kick of lower bad &amp; doubtful debt charges.&nbsp;</li><li>Woolworths was down 13% following another profit warning, while Wesfarmers was part of the collateral damage of what appears to be&nbsp;a renewed supermarket price war.&nbsp; With the new Woolworths Chairman having swept the slate clean, I suggest that the downside risk to Woolworths is limited.&nbsp; Renewed strong competition amongst grocery retailers augurs well for low inflation and lower interest rates.&nbsp; Evidente remains of the view that the RBA will deliver more monetary stimulus at the November board meeting on Melbourne Cup Day.</li></ul>

The banks and supermarket retailers dominated financial market developments in Australia over the past week.&nbsp; Investors were disappointed by full year results from ANZ and NAB, with the stocks falling by 6-7% over the week, well below the 2% weekly decline in the ASX200.&nbsp; &nbsp;Evidente discusses (again) why the lift in capital requirements does not amount to higher input costs for the banks.&nbsp; Analysts have downgraded the sector&rsquo;s dividend outlook for a while now, due primarily to the fact that the majors are no longer receiving the big free kick of lower bad &amp; doubtful debt charges.&nbsp;Woolworths was down 13% following another profit warning, while Wesfarmers was part of the collateral damage of what appears to be&nbsp;a renewed supermarket price war.&nbsp; With the new Woolworths Chairman having swept the slate clean, I suggest that the downside risk to Woolworths is limited.&nbsp; Renewed strong competition amongst grocery retailers augurs well for low inflation and lower interest rates.&nbsp; Evidente remains of the view that the RBA will deliver more monetary stimulus at the November board meeting on Melbourne Cup Day.

Weekly Impressions - Competition intensifies amongst banks and supermarket retailers