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)

<ul><li>Central bank communications and actions dominated financial market developments over the past week.&nbsp; The PBOC's monetary easing on Friday brings the cumulative decline in the 1 year benchmark bank lending rate to 165 basis points in the past year.&nbsp; Despite the substantial easing, growth in industrial production, fixed asset investment and total social financing has continued to slow.&nbsp;</li><li>Various developments stemming from the&nbsp;ongoing deleveraging dynamic&nbsp;continue to weigh&nbsp;on activity and blunt the efficacy of monetary policy in China, including: low efficiency of investment, the decline in corporate profitability, lower interest coverage ratios for SOEs and other excess capacity sectors even as interest rates decline, and the high debt burden of the non-financial corporate sector.</li><li>Mr Mario Draghi's announcement that concerns surrounding growth prospects in Emerging Markets could have a long lasting impact on prices (if left unchecked)and&nbsp;willingness to deliver more&nbsp;policy accommodation in December,&nbsp;sparked a rally in global stock markets.&nbsp; The shift in rhetoric&nbsp;also reflects the&nbsp;fact that core inflation has undershot the ECB's target for most of the past decade, and at present, remains a long way from its target.</li></ul>

Central bank communications and actions dominated financial market developments over the past week.&nbsp; The PBOC's monetary easing on Friday brings the cumulative decline in the 1 year benchmark bank lending rate to 165 basis points in the past year.&nbsp; Despite the substantial easing, growth in industrial production, fixed asset investment and total social financing has continued to slow.&nbsp;Various developments stemming from the&nbsp;ongoing deleveraging dynamic&nbsp;continue to weigh&nbsp;on activity and blunt the efficacy of monetary policy in China, including: low efficiency of investment, the decline in corporate profitability, lower interest coverage ratios for SOEs and other excess capacity sectors even as interest rates decline, and the high debt burden of the non-financial corporate sector.Mr Mario Draghi's announcement that concerns surrounding growth prospects in Emerging Markets could have a long lasting impact on prices (if left unchecked)and&nbsp;willingness to deliver more&nbsp;policy accommodation in December,&nbsp;sparked a rally in global stock markets.&nbsp; The shift in rhetoric&nbsp;also reflects the&nbsp;fact that core inflation has undershot the ECB's target for most of the past decade, and at present, remains a long way from its target.

Weekly Impressions - Deleveraging dynamic blunts China's monetary easings