New Bricks in the Wall of Worry
In the finance world, a wall of worry is an increasing amount of negative information about a security or about the market. That is how the website investinganswers.com defines the expression “wall of worry” frequently cited expression in times of uncertainty. It seems an almost daily occurrence that investors are treated to another “brick” added…
The future of privately issued digital currency
Such are the prospects for mainstream acceptance for something like Facebook’s Libra. But the hurdles are daunting too. In 2015, China’s yuan joined the US dollar, euro, UK pound and yen as an elite currency in the IMF’s ‘special drawing rights’ that members can access in emergencies. The yuan’s ascent to IMF-sanctioned status recognised that…
Monetary Intervention Isn’t Quite Going To Plan
As interest rates approach zero in much of the western world, the linear relationship which economists expect from their monetary intervention isn’t quite going to plan. Rather than igniting animal spirits and spurring spending, declining rates are creating insatiable demand and stratospheric prices for safe haven assets whilst doing nothing for the velocity of money…
The Case For Small To Mid-Caps
If you research Australia’s largest listed companies, you’ll discover that some of them were much smaller stocks not that long ago. Small or medium companies can be overlooked, given they’re often considered riskier than their large cap peers. Yet historically, investors have been rewarded for additional risk with superior long-term returns. What are small and…
When the Smartest People in the Room Get it Wrong
For reasons ranging from time and temperament to financial acumen, many retail investors choose to allow the professionals – the “smartest people in the room” to manage their money. Why endure the pain of picking your own stocks when you can get a wizard at stock picking to do it for you? In the UK,…
Journalism’s ‘Fourth Estate’ Role Is Crumbling In The Internet Age
The telling blow is the damage wrought on local newspapers. Canadian Prime Minister Justin Trudeau’s embrace of Jody Wilson-Raybould while gazing into her eyes just after she was sworn in as the country’s first Indigenous attorney general in a cabinet that was notably half female epitomised the progressive image that Trudeau’s Liberal government sought to…
Silver Mining Stocks Fundamentals
The silver miners’ stocks have been pummeled in recent months, plunging near major secular lows in late May. Sentiment in this tiny sector is miserable, reflecting silver prices continuing to languish relative to gold. This has forced traditional silver miners to increasingly diversify into gold, which has far-superior economics. The major silver miners’ ongoing shift…
RBA rates decision stuck between jobs growth and household debt
Is the Reserve Bank of Australia’s monetary policy on a collision course with itself? Quite possibly. The key data and evidence this week were employment figures in Australia, retail sales in the United States, and minutes from the Reserve Bank of Australia board and US Federal Open Market Committee (FOMC). First, the data. ABS figures…
5 government debt myths
Summary As we approach a rising rate environment, the scale of U.S. federal debt has some investors concerned about the sustainability of government finances in the coming years. In this bulletin we consider the most common myths about the government’s debt and discuss how investors can position their portfolios to withstand what we believe are manageable…
Now Is The Time To Fight The Next Recession
This is part of a major series called Advancing Australia, in which leading academics examine the key issues facing Australia in the lead-up to the 2019 federal election and beyond. Australia’s nearly three decades of uninterrupted economic growth won’t last forever. Sooner or later policymakers will need to respond to a downturn that could come…
