China cuts interest ratesStarting point valuations matter, a lot

China cuts interest rates

For the first time since 2012 China has cut interest rates. Borrowing costs have been too high in China so rate cuts will help support economic growth. Expect more interest rate cuts ahead. The rate cut is positive for Chinese shares which remain relatively cheap. 20141124-oi-china-rate-cut
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Starting point valuations matter, a lot

Starting point valuations – eg yields and price to earnings multiples – are a key driver of potential medium term investment returns. This is particularly so for cash and bonds, and for shares & other growth assets at extremes. 20141119-oi-valuation
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