The S&P/ASX 200 (ASX: XJO) finished the week on a negative note but it was a different story for US markets, with all three benchmarks climbing over the five days.
Here are my three key investor takeaways from the week.
Telstra’s unique deal
They say you learn something new every week, and this past week was no different.
On Monday, the market was informed that Telstra Corporation Ltd (ASX: TLS) would be buying Digicel, the dominant telecommunications provider for less than $300 million. The over $1.7 billion odd in funding came directly from the Australian Government.
This is clearly a great deal for shareholders but it reflects an unexpected pivot by the government as it seeks to combat the expansion and economic power of China.
The days of public-private partnerships of this kind seemed over and when our competitors take similar action, tend to be seen in a negative light.
October sell-off averted
October has historically been the worst month for sharemarkets, with the majority of major sell-offs coming before Halloween.
Apart from a bump to finish the month, it seems the curse has been averted, which once again reflects the importance of investing on merit, rather than headlines.
Rate calls grow
Sticking with headlines, the bond bears are back out in force, with the RBA non-action on Friday seeing the two-year bond yield jump significantly in just a few hours of trade.
The parade of economists forecasting rate hikes well before 2024 continue to grow and bet against the central bank. This is of course the same cohort who predicted Armageddon just 18 months ago.
Whilst an interesting move in bond markets no doubt, more sustained trends are likely warranted before taking action.
