Analysis & Opinion

The growth outlook constructive for spreads

Financial markets continued to gain ground during May with developed market equities and global credit supported by continued strong economic activity. Slowing global COVID case numbers and the continued vaccine rollout also contributed. Inflation was a key focus for financial markets during the month. Domestically, core inflation and wage growth remain low in spite of…

18 Share Tips – 5 July 2021

John Athanasiou, Red Leaf Securities BUY RECOMMENDATIONS Endeavour Group (EDV) EDV recently listed after demerging from supermarket giant Woolworths. EDV owns retail liquor chains Dan Murphy’s and BWS. It also owns 293 hotels operating 12,364 poker machines. Our buy rating reflects EDV’s defensive earnings profile. It holds a niche position, as there is no clear…

Gold investors ignoring the Fed

Gold was just hammered lower after the latest FOMC decision. Heavy gold-futures selling erupted after a third of top Fed officials implied they saw a couple potential rate hikes way out into year-end 2023. While leveraged gold-futures speculators panicked, gold investors ignored these faint tidings of slight tightening way off in the distant future. Their…

18 Share Tips – 28 June 2021

Michael Gable, Fairmont Equities BUY RECOMMENDATIONS Wesfarmers (WES) This industrial conglomerate has formed a cup and handle on the technical chart. This is a response to the share price dipping from its February peak and re-testing it in April. Then the share price congested below its peak for longer than anticipated. An eventual break above $56…

ETFs solving net tangible asset discount

There are several managed investment structures accessible via the Australian Securities Exchange (ASX) and Chi-X trading platforms, including Listed Investment Companies (LICs), Listed Investment Trusts (LITs), mFunds, exchange traded managed funds (ETMFs) and exchange traded funds (ETFs). These structures offer various features and benefits that have evolved in response to different market conditions Traditionally LICs…

Economists call for speeding up the switch to electric cars

Australia’s top economists overwhelmingly back government measures to speed the transition to electric cars in order to meet emission reduction targets. An exclusive poll of 62 of Australia’s preeminent economists — selected by their peers — finds 51 back measures to boost the take-up of electric cars including subsidising public charging stations, subsidising the purchase…

Diversified Mining Service Providers for the Risk Averse

On 2 June, the Minerals Council of Australia released its Commodity Demand Outlook 2030 report, stating that Australia is in a strong position for future success by meeting growing global demand for commodities to power growth, energy generation and decarbonisation. The report predicts moderate to steady growth in the demand for iron ore, metallurgical and…

18 Share Tips – 21 June 2021

John Anderson, Bell Potter Securities BUY RECOMMENDATIONS Goodman Group (GMG) Goodman is a global industrial property group, with operations in Australia, New Zealand, Asia, Europe, the UK, North America and Brazil. The long term outlook is favourable given increasing online retail sales and a growing middle class in developing countries. With more than $5 billion…

The Lure of the IPO

Investing in shares of publicly traded companies has seen an influx of new retail investors over the last few years, with trading levels accelerating during the pandemic. Many of these investors are new and lacking in knowledge of markets. Of the many oddities encountered in their search to learn, the sometimes conflicting views of investing…

Why has growth slowed globally?

Even before COVID-19 hit, Australia was experiencing slow growth in GDP per capita and real wages. There has been a distinctly lower rate of both economic and real wages growth since the financial crisis of 2008-09. Advanced economies around the world have, to varying degrees, witnessed the same trends. If anything, Australia has done slightly…