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…
Gold bullion or gold equities?
Financial-market turmoil is strengthening the case to add gold exposure to portfolios as more “insurance” in the event of a sharper equities market sell-off. It is also providing an opportunity to capitalise on the precious metal’s improving medium-term prospects. Gold’s role as a ‘safe-haven’ has come to fore this year. The US-dollar gold price has…
The Federal Reserve: How does it work?
The US Federal Reserve is subject to intense scrutiny by governments and investors worldwide since its decisions can ripple throughout the global economy. But how does it really work? Dual mandate The Fed was created on December 23, 1913 under President Woodrow Wilson. Unlike most central banks, such as the European Central Bank, that focus…
The Market Is Toast. Protect Your Assets
The trader who became an internet sensation with his outburst on BBC television – declaring that “the market is toast” and that the smart money is moving its assets to safer investments like treasury bonds – has become an instant enemy of the corporate media. His views on the global financial crisis were belittled as…
3 ways to benefit from backdoor listings boom
The backdoor listings market on ASX is equal parts fascinating and frustrating. Fascinating because some promising technology companies are listing through the shell of failed miners. Frustrating because there is less information about upcoming listings. A backdoor listing typically involves a dormant listed company acquiring the shares or assets of an unlisted company, after shareholder…
The Outlook for Aged Care Operators
What could be better than investing in a sector with typhoon proportion tailwinds at its back, with something approaching 70% of revenue stemming from the federal government? In 2014 three ASX stocks listed, all operating in that sector – care of Australia’s aging population. Japara Healthcare (JHC) was first out of the gate in March,…
Go on Defense with High Yielding Utility Stocks
The latest chapter in the never-ending saga of “Can the Greeks Pay their Bills” adds another brick in the wall of worry for Aussie investors. In reality many analysts claim a Greek Exit, or Grexit, from the Eurozone and/or the European Union will matter little. Add the Grexit to current concerns about our economy and…
Lehman’s collapse 10 years on
The collapse of the US investment bank on 15 September 2008 sent shockwaves through markets. We explain the impact in the decade since. Ten years ago, US investment bank Lehman Brothers filed for bankruptcy, marking the most symbolic moment of the global financial crisis. It remains the largest bankruptcy filing in US history. The demise…
Stocks to win from cloud computing boom
Disruptive technologies are new ways of getting things done that “disrupt” current ways of doing things. History is replete with examples of disruptive technologies dating back to mankind’s first spear. A contemporary example is cloud computing, which frees consumers and corporations from the burden of housing computing resources at their location. What is being billed…
