Following last week’s hotter than feared inflation read, we explore whether inflation can be tamed without inducing a recession.

As household spending begins to normalise over the next 12 months, we look at the outlook for earnings in a post-COVID world.

May was a tricky time to be an Australian investor with the market falling 3% over the month, underperforming the MSCI World ex Australia (-1.1%). We look at the market’s key concerns over the month and explain the changes we’ve made to the Focus List in June as a result.

After a 25% national price rise from the 2020 COVID dip, Australian house prices are finally beginning to soften. While a significant correction seems likely a “crash” in our view is unlikely. We share our base case and view on house prices into 2023.

Volatility in the markets causes investors to seek ways to mitigate that risk. Including quality or defensive stocks in a portfolio may be a good solution, with the return and volatility of quality defensives being historically superior to those of broader equities during choppy market conditions.

Despite market weakness this year US earnings have remained relatively resilient. We look at the earnings outlook and the implications for US equities.

With already tight oil and gas markets getting tighter as a result of the Russia/Ukraine crisis, some lost production now looks irreversible, adding another significant tailwind to the energy outlook over the next few years.

With the US market experiencing a sharp performance reversal to start the year, we examine the history of significant “corrections” and “bear markets” to provide perspective around current market weakness.