Why invest in utilities?
Regulated utilities are known for their ability to generate moderate but predictable returns regardless of market conditions. For this reason, we often describe utility stocks as the ‘lead in the keel’ of our infrastructure portfolios. They allow us to navigate shifts in global equity markets with confidence as we seek to deliver annualised returns of…
Australia’s Economy is a House of Cards: Part One
Australia’s Economy is a House of Cards: Part 1 of 2 By Matt Barrie & Craig Tindale I recently watched the federal treasurer, Scott Morrison, proudly proclaim that Australia was in “surprisingly good shape”. Indeed, Australia has just snatched the world record from the Netherlands, achieving its 104th quarter of growth without a recession, making…
Australia’s Economy is a House of Cards: Part Three
Australia’s Economy is a House of Cards: Part 3 of 4 So why are governments so keen to inflate housing prices? The government loves Australians buying up houses, particularly new apartments, because in the short term it stimulates growth – in fact it’s the only thing really stimulating GDP growth. Australia has around $2 trillion…
Big three Listed Investment Companies providing steady long-term returns
Much has been made of growth in Exchange Traded Funds (ETFs) that replicate an index return at low cost. Less considered are larger Listed Investment Companies (LICs) that provide active exposure to Australian equities without high fees. In some respects, a middle ground between active and passive investing is emerging. “Smart beta” ETFs use methodologies…
Aviation Alliance back on runway
Growing up in country Queensland gives one an appreciation for long-distance travel, and for regional airports that are a great indicator of a local economy’s health. I recall my local airport being full of workers in fluorescent shirts: the fly-in, fly-out (FIFO) brigade that prospered during the mining boom peak. The airport was standing room…
Driverless vehicles are here
Milton Keynes is a UK town where many streets are reserved for pedestrians and bicycles. That made it a suitable place to test driverless cars, one of the great possibilities tied to the rise of artificial intelligence. In what was declared a successful experiment, ‘pods’ with radar, lidar (that uses pulses of light to measure…
Will Electric Vehicles Usher in a Transportation Revolution?
Investors searching for opportunities in “next big thing” disruptive technologies are frequent visitors to futuristic websites. RethinkX.com. was co-founded by a London based investor in disruptive technologies and a Stanford University instructor, creator of the Seba Technology Disruption Framework™. This site bills itself as an “independent think tank that analyzes and forecasts the scope, speed…
Three charts on: who is the typical investor in the Australian property market?
Contrary to the image a property investor might conjure up – a wealthy full-time property speculator – most residential investors in Australia don’t actually rely on it as their primary source of income.In reality, Australia’s residential investment market is dominated by people who, having bought their own home, have moved onto buying an investment property….
Family trusts often cause more harm than good
There is very little, if anything, to commend discretionary trusts. The benefits they bring, and it’s hard to see many, are dwarfed by their destructive and damaging features. Trusts are usually used to allocate money to members of a group, usually a family. Under a discretionary trust, the only way a beneficiary will get income…
A housing affordability crisis in regional Australia? Yes, and here’s why
The newly released annual Demographia report on housing affordability has found – once again – that Australia has some of the least affordable housing markets in the world. Sydney was ranked as the second-least-affordable housing market behind Hong Kong. This news came just a day after incoming NSW Premier Gladys Berejiklian announced that improving housing…
