Why look for value rather than growth in China?
The general perception surrounding China is that it is an ideal market to search for growth. The reality is that China is a very unique and policy-driven economy. The extent of policy and government regulation make it a complex market to navigate, and the regulatory framework evolves at a fast pace. China is also a…
Bling’s the thing as trinkets charm consumers
Someone forgot to tell the long line of people queuing to buy Pandora jewellery that Australia’s economy is sluggish and that consumers are doing it a little tough.Shoppers could not get enough of Pandora’s mid-priced charm bracelets and trinkets. Business was almost as brisk at a nearby Michael Hill International jewellery store, and “fast fashion”…
Behavioural finance: Money illusion
Money illusion describes the tendency of people to think about money in nominal rather than in real or inflation-adjusted terms. In other words, it’s when people focus on the absolute amount of money rather than what that money can buy. The concept of money illusion was first discussed by Irving Fisher and later popularised by…
Company directors can be held legally liable for ignoring the risks from climate change
Company directors who don’t properly consider climate related risks could be liable for breaching their duty of due care and diligence, a new legal opinion has found. Although the alarm for business leaders has been sounding for some time, the release of the opinion by senior barristers and leading solicitors confirms the potential liability for…
Could A Lithium Shortage De-Rail The Electric Car Boom?
We\’ve gone electric, and there\’s no going back at this point. Lithium is our new fuel, but like fossil fuels, the reserves we\’re currently tapping into are finite-and that\’s what investors can take to the bank. You may think lithium got too popular too fast. You may suspect electric vehicles are too much buzz and…
Tracking the Metcash Turnaround Plan
Everybody loves a bargain. In share market investing the thrill of plucking a beaten down stock from the bottom and watching the share price eventually begin to rise is hard to match. Unfortunately the thrill may never materialize as the seemingly ridiculously low share price keeps getting lower. How then does an ordinary retail investor…
The curious incentives and consequences of negative gearing
Negative gearing was one of the federal election campaign’s fiercest battlegrounds.While the Labor opposition claimed that the major beneficiaries of the tax policy were almost all in the very highest earnings bracket, the Coalition attacked any proposed changes, saying they would “smash” house prices and unfairly punish “mum and dad investors”.The fact is, negative gearing…
Understanding global debt and what it means for investing
In brief• The word “debt” is often thought of in a negative context, but the usefulness of debt can actually be placed on a spectrum.• While a healthy amount of debt creation is necessary to support economic expansion, too much debt can drag on growth and/or cause financial distress.• Global debt levels have been elevated…
Wealth and poverty in Australia
Helen Westerman and Wes Mountain The Household, Income and Labour Dynamics in Australia (HILDA) Survey, which started in 2001, collects information on Australian households, focusing on economic and subjective well-being, labour market dynamics and family dynamics. The infographic below charts the changes in wealth and poverty of Australian households over the 15-year history of the…
Geospatial Mapping Companies on the ASX
In 1858 a French photographer perched in a hot air balloon took the first aerial photograph the world had ever seen. Despite the limitations posed by clumsy photographic equipment the enormous potential for aerial photographs started a cycle of development leading to contemporary orbiting satellites recording images of the earth from the stars. However, even…
