A BoE disaster, covid recovery, bear markets, recessions… and good news stories ft. Kerry Craig

Kerry Craig is the Global Market Strategist at J.P. Morgan Asset Management.

Based in Melbourne, Kerry and Owen sat down in the Rask studio to talk about everything that’s happening in the economy, stock market, bond market and everything that fits in between.

Topics covered with Kerry Craig from J.P. Morgan Asset Management:

• What does your day job entail, Kerry?
• Can you provide an overview of what we’ve seen from global markets over the past 2-3 years?
• Let’s zoom into the UK for a few minutes and what we’ve seen there over the past 12 months and 12 days. Few people outside of a commerce degree or CFA would have heard of a gilt. How do you make sense of what we’ve seen?
• The US stock market has entered a bear market, why is that? Have US earnings come back to such an extent to warrant the sell-off? Shiller PE?
• Versus the US market, Aussie equities (down 10%) haven’t been hit as hard as the US (down 17%) in 2022. What’s been driving our performance relative to the US market? Has the Aussie earnings outlook been as impacted?
• This month the RBA bumped interest rates by 0.25% — and the stock market jumped 3.5%. Was it unexpected? What did you make of the call?
• Recession. There is talk — and lots of it — saying we’re headed to a recession here in Australia. What’s your view? Do you think we’ll enter a recession? What would be the signal to prove your viewpoint wrong?
• Over the ultra-long term, the Australian share market has been one of the best performers. Have you ever considered what makes Australia so special?
• What 2-3 key signals you are watching for the remainder of the year to gauge how we’ll enter 2023?
• If you were a student of macroeconomics today, who are 3 people you would follow or read to make sense of markets?