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.

Macroeconomics

<ul><li>The CPI print revealed that disinflationary forces intensified in Australia in the March quarter.  Underlying inflation posted a quarterly rise of only 0.18%, the smallest increase since the inception of the series in 1982.  As a result, underlying inflation rose by only 1.5% in the past four quarters, which also represents the smallest annual increase on record.</li><li>The record low inflation outcome will cause a headache to RBA Governor, Mr Glenn Stevens.  He has developed a reputation as the reluctant rate cutter, having recently re-iterated his view that the potency of monetary policy is diminished at low rates of interest and endorsing structural policies to boost growth. </li><li>But the growing shortfall in aggregate demand implied by the record low March quarter CPI print points to the prospect of weaker labour market conditions.  Surely the role of a central bank is to revive animal spirits when the psychology of risk taking is muted?  With underlying inflation now 50 basis points below its target, Evidente re-iterates the view that the RBA Board should deliver another rate cut at its next meeting on May 3rd.</li></ul>

The CPI print revealed that disinflationary forces intensified in Australia in the March quarter.  Underlying inflation posted a quarterly rise of only 0.18%, the smallest increase since the inception of the series in 1982.  As a result, underlying inflation rose by only 1.5% in the past four quarters, which also represents the smallest annual increase on record.The record low inflation outcome will cause a headache to RBA Governor, Mr Glenn Stevens.  He has developed a reputation as the reluctant rate cutter, having recently re-iterated his view that the potency of monetary policy is diminished at low rates of interest and endorsing structural policies to boost growth. But the growing shortfall in aggregate demand implied by the record low March quarter CPI print points to the prospect of weaker labour market conditions.  Surely the role of a central bank is to revive animal spirits when the psychology of risk taking is muted?  With underlying inflation now 50 basis points below its target, Evidente re-iterates the view that the RBA Board should deliver another rate cut at its next meeting on May 3rd.

Will Someone Pass the Panadol to Mr Stevens Please?