Buying on the Dips for the Risk Averse
Fiscal Year 2022 saw the ASX All Ordinaries Index (XAO) post its worst performance in a decade – dropping 11%, with a majority of the blood spilling into the streets occurring in the second half of the fiscal year. A veritable perfect storm of events have taken place, from COVID 19 variants to subsequent supply…
Silver Miners’ Q2’22 Fundamentals
The silver miners’ stocks have been thrashed in recent months, battered back down to stock-panic prices. That dreadful technical action has left this sector abandoned and forgotten, traders avoiding it like the plague. But the greatest opportunities to buy low and multiply wealth come when sectors are the most-despised. The silver miners’ recent earnings season…
From Squid Game to semiconductors
Since the late 1990s, the Korean Wave, or “Hallyu”, has been gaining momentum. The country has enjoyed phenomenal success in exporting its popular culture around the world, benefitting from growth in the internet, smartphones, and online video streaming along the way. Many will be familiar with K-pop and K-dramas, in particular last year’s Netflix hit,…
In a volatile market, diversification is key
In an uncertain market, diversification across different asset classes, countries, sectors and regions is paramount. Global shares offer diversification across sectors and themes that would not be possible to achieve by investing in Australian equities alone. The ASX 200 was traditionally dominated by two industries and, for the last twenty years, financials and materials accounted…
A Reboot of the Golden Age of Gas
In 2011 the International Energy Agency (IEA) posed an intriguing question in a special report on the world energy outlook. At the time oil and gas producers in North America were in the midst of a booming market for shale gas drilling; nuclear power was facing a troubling future, and facilities for liquefying natural gas…
Keep liquid and embrace volatility
A challenging macroeconomic backdrop of rising inflation and interest rates has tested investor patience over 2022 and more recent recession fears have done little to help. We asked portfolio managers Anthony Aboud and Sean Roger how a bottom-up stock picker goes about adding value when the broader market is so dominated by macro themes. Twelve…
Many jobs summit ideas for wages don’t make sense
Treasury’s issues paper for the jobs summit says fair pay and job security “strengthen communities, promote attractive careers and contribute to broad-based prosperity”. But it notes “many Australians have not experienced real wage gains”. It says real (inflation-adjusted) wages have grown by only 0.1% per year over the past decade and have declined substantially over…
Greenhouse Gas from a Surprising Source
After what seemed an eternity of talk without significant governmental action to combat climate change, the US has passed what some are saying is the biggest climate bill in history. Oddly named, the Inflation Reduction Act commits $740 billion US dollars to target a variety of long-standing concerns – energy production and manufacturing, reducing carbon…
Is This Next Big Thing Ready to Bloom
Investors addicted to high growth potential are constantly on the hunt for whatever researchers and market analysts are dubbing as “the next big thing.” Next Big Thing candidates are generally disruptive, as their business models have the capability to disrupt normally accepted business operations. Financial technology, or FinTech, stocks offered a variety of Next Big…
Gold Stocks Deeply-Undervalued
The gold miners’ stocks have been hammered to deeply-undervalued levels in recent months. Slammed by heavy gold-futures selling driven by an extreme parabolic US-dollar surge, the gold stocks have been largely abandoned. That left their stock prices anomalously low relative to gold, which overwhelmingly drives their earnings. This portends a massive mean-reversion higher to normalize…
