Trends & Opportunities

Backing Down On Mortgage Brokers

What a backdown.On Tuesday, with all the grace he could muster, Treasurer Josh Frydenberg declared that he wouldn’t be implementing as many of the banking royal commission recommendations as he had said he would.As he put it:Following consultation with the mortgage broking industry and smaller lenders, the Coalition Government has decided to not prohibit trail…

Investor Signposts: Week Beginning Mar 18 2019

Investor Signposts 15 Mar 19: Jobs and population data in focus.CommSec Senior Economist Ryan Felsman previews the economic and financial market events scheduled for the week ahead including the RBA Board Minutes, the February employment data and the latest population figures.Watch Video: https://youtu.be/erSJfW8CPiUAustralia: Jobs and population data in focus• In the coming week the all-important jobs…

Mining Services and Construction Stocks with Strong Earnings Growth Forecasts

Many investors seek safety with the service providers of the “hot” products or commodities of the moment.  In the face of booming commodity prices in iron ore or oil, common sense suggests investing in a company that provides services for multiple miners and oil operators provides a level of diversification that suggests less risk.  Conventional wisdom advises…

Dividends hit $29.4b

Dividends lift: Payouts hit $29.4 billionEconomic and Financial market perspectivesCash payouts: Since mid-February, ASX 200 companies have paid out around $4.5 billion in dividends to shareholders. But dividend payouts really start to ramp up in mid to late March. Overall, around $29.4 billion will be paid to shareholders over the February-June period, up from $26…

Take a dispassionate approach to investing

Investing legend Warren Buffett said to “be greedy when others are fearful”. Or as the 18th century British nobleman Baron Rothschild put it: “buy when there is blood on the streets”.Both billionaires referred to contrarian investing. That is, buying stocks when they are undervalued because of panic selling. And selling overvalued stocks when hype abounds.That is easier…

An Illustration Of Why It’s Best To Diversify

Schroders produces a wall poster each year that shows the relative performance of all asset classes from the past 20 years. It’s one of the most popular items we provide to clients because it serves as a stark reminder of the role diversification plays in portfolio construction.This year’s table is ever more striking, given it…

US Stocks Fourth Quarter Fundamentals

The widely-held mega-cap stocks that dominate the US markets recently finished reporting their Q4’18 financial results.  Because the tenor of stock markets changed radically last quarter, this latest earnings season is more important than usual.  An extreme monster bull market suddenly rolled over into a severe near-bear correction in Q4.  How major corporations fared offers insights into…

Lessons From The Resurrection Of The Iron Ore Miners

Fueled by the insatiable appetite of the Chinese Government to build, build, build; ASX iron ore miners led Australia on an unprecedented mining boom, with the price of iron ore eclipsing US$180 per tonne in early 2011.  The price softened in 2012, leading to some opining the boom was about to end, with others in the…

Large Discounts On Offer In LIC Sector

Buying $1 of asset for 80 cents looks like a no-brainer.  Particularly when that $1 of assets involves liquid shares that are valued on the stockmarket by the second. This scenario is readily available in the Listed Investment Company (LIC) sector at current prices but the opportunity is not as straightforward as it seems. Some LICs trade at…

Why Deficits Don’t Really Matter Any More

It seems that whoever wins the White House in 2020, the US federal deficit will blow up.President Donald Trump has already signed into law massive tax cuts that are estimated to expand the deficit by at least US$1.5 trillion over the next decade.The list of Democrats seeking their party’s presidential nomination has moved into double digits, but…