Shane Oliver

Uncertainty, information overload and social media are driving investors to seek experts and influencers who can predict what comes next.

One criticism of the latest Reserve Bank of Australia decision, its use of forecasts and an assertion that “they're no better at it than the private sector astrologists at major banks masquerading as so-called ‘market economists'” got me thinking. What exactly has this person (who is also an economist) got against astrologers? Ever since I heard about the dawning of the age of Aquarius I knew there was something in it.

After record highs in US and European shares a week ago, global shares pulled back in the last week reflecting concerns about rising bond yields, not

Cotality data shows national average home prices fell 0.9% in August, with capital city prices down 1.1%, their fifth monthly fall in a row. This followed a fall of 1.2% in July which had been revised from 0.7%. Prices nationally have now fallen 3.6% from their high.

Brisbane, Adelaide, Sydney and Hobart houses are the most overvalued and vulnerable.

. US shares managed a small rise though as relatively dovish comments by Fed officials Williams and Waller implied that a September rate hike is not a dead cert. August inflation data in the week ahead will be key. But Eurozone, Japanese and Chinese shares fell. The Australian share market also fell around 0.9% with the hit from rising oil prices and bond yields compounded by falling home prices adding to concerns about the economic outlook at the same time that GDP growth was still strong enough to reinforce expectations that the RBA is on track to raise rates again with some now talking of two more rate hikes (versus none two weeks ago). Banks and financials rose on the ASX but were offset by falls in IT, mining and retail shares.

Bond yields are likely now in a super cycle rising trend with big implications for investors.

Bond yields are being pushed higher by concerns about inflation, high public debt, rising corporate borrowing, rising Japanese bond yields and increasing economic uncertainty.

9 September Key points Bond yields are being pushed higher by concerns about inflation, high public debt, rising corporate borrowing, rising Japanese bond yields and increasing economic uncertainty.

Global share markets fell again over the last week as both oil prices and bond yields pushed higher with more upwards pressure on central bank interest rate expectations.