Agriculture a cyclical investment opportunity
Agriculture as a sector is largely uncorrelated to, and unaffected by, COVID-19. There have been other pressures, notably the severe drought on Australia’s east coast. As many companies started to feel the impact of the drought, the share prices fell to levels well below our assessment of fair value. For cyclical sectors, such as agriculture,…
Thinking straight in a troubled economy
As markets rally in the face of deep uncertainty, while central banks prop up asset values in the name of maintaining liquidity, straight thinking has become rarer than ever. Fortunately, there are still attractive investments for those willing to stay disciplined and seek out enduring value. ‘Think straight, talk straight’: the motto of Arthur Andersen….
Aussie dollar holds above 0.64 cents as markets eye RBA decision
Aussie dollar holds above 0.64 cents as markets eye RBA decision The market took a decent shot at the downside overnight and failed to make any progress. Now we have a market that is likely bit short AUD (AUDJPY) going into RBA, and there is a risk of a squeeze higher. Oil prices have stabilised…
5 dividends questions answered
Q1: What’s likely to happen to company dividends post the onset of COVID-19? Dividends are the cashflows that a company elects to pay out to its shareholders as a reward for holding the shares over time. We hope that if they are good, growing businesses, companies can pay from their profits. They can also dispose…
CommSec Daily Report Wednesday
Latest news While Aussie shares are losing ground for a third day, the ASX 200 is down by just 0.8 per cent, bouncing off a low of 2.3 per cent earlier this morning. The market has shed close to 6 per cent so far this week partly on volatile oil prices and sluggish economic data….
Six tips for better behavioural investing
At a turbulent time for global markets, Nick Kirrage, Co-Head of the Value Team, recently sat down with the Investor Download podcast. We discussed the current state of financial markets, reflected on the behaviour of investors and how they might best navigate the current turmoil. Below are six key points. 1. Understand what’s driving market volatility…
Virgin Australia receives a lifeline
With commercial airline fleets grounded due to lack of demand, the Australian government will pay the nation’s two biggest airlines, Qantas and Virgin Australia, $A165 million to ensure they keep flying critical metropolitan and regional routes over the next two months. This measure comes on top of a A$198 million assistance package for regional airlines and the…
The Second Economic Support Package
The Second Economic Support Package Economic news The Federal Government has compiled a second, $66.1 billion package of measures “to cushion the economic impact of the coronavirus and help build a bridge to recovery.” The details of the consolidated package first and second packages is at: The economic packages to date total $189 billion or…
CommSec Daily Reprot Wednesday
Latest news Aussie shares are sliding to near intraday lows, with coronavirus fears continuing to keep equities under pressure and markets volatile. The ASX 200 is slipping by ~260pts or 4.9 per cent to 5,033. Remarkably, the local market has fallen by approximately 30 per cent in just 19 trading sessions and today’s tumble marks…
Hunting for income: Three things to consider
With interest rates likely to be lower for longer, investors are seeking yield from potentially riskier investments. We analyse alternatives and share three key factors to consider in the hunt for income. Record-low interest rates pose a challenge for income-oriented investors. That challenge is particularly acute for those living off the income from cash investments….
