This week on Money & Investing, Mitch Olarenshaw and I discuss 5 charts every investor should be looking at and how they affect your investments, from company profits to interest rates and market sentiment.
1. Oil Prices
Oil prices affect transport, food production, and business costs. Sustained increases can add to inflation and influence interest rate decisions. Watching oil helps you assess pressure on company profits and household spending.
2. Bond Yields
Bond yields reflect expectations about interest rates and influence borrowing costs. We explain the relationship between bond prices and yields, and why an inverted yield curve attracts attention as a possible recession signal. These changes matter for property investors and businesses carrying high debt.
3. Gold Prices
Gold can provide clues about investor fear and demand for perceived safety. However, it produces no income, and its price can fall. We discuss how higher interest rates increase the opportunity cost of holding gold compared with income-producing assets.
4. The US Dollar
Oil and gold are priced in US dollars, making currency movements relevant beyond the foreign exchange market. Understanding the dollar’s role helps investors connect commodity prices, purchasing power, and overseas investment exposure.
5. S&P 500 Earnings
Company earnings help explain share valuations and market performance. We discuss the limits of price-to-earnings ratios, the importance of earnings growth, and what it means when positive results fail to lift share prices. Growth across a wider range of companies also provides insight into market strength.
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