Trends & Opportunities

Central banks risk seeing their feted ‘independence’ watered down

William Martin is the longest-serving Federal Reserve chief, having served from 1952 when Harry Truman was president to 1970. A few years into the role, Truman saw Martin on a New York street. The president from 1945 to 1953 stared at Martin, called him a “traitor” and walked away. Martin’s betrayal? He prioritised a successful…

Should Stock Pickers Mine the Top 30 Short List

Dedicated Aussie investors who choose to pick their own stocks are always on the lookout for prospects. Some avoid the Top 30 Short List as a source in the belief short sellers have more expertise in analysing stocks due to the greater risk entailed. The risk element is true, given the potential loss of a…

Weakening Shale Productivity “VERY Bullish” For Oil Prices

After years of improvements in drilling techniques and impressive “efficiency gains,” there is now evidence that the U.S. shale industry is reaching the end of the road on well productivity. A report earlier this month from Raymond James & Associates finds that the U.S. shale industry may struggling to achieve further productivity gains. If these…

Investor Signposts: Week Beginning September 9 2019

Australia: Business and consumer confidence in focus • In the coming week there will be more insights into the economic environment in terms of business conditions and consumer sentiment. Home lending data will be scrutinised for a continued stabilisation in housing finance commitments. And the deceleration in Chinese tourist arrivals is expected to continue due…

Do central banks need to change regimes?

Central bank groupthink across the world means that although inflation targeting has largely worked over the past three decades, effectiveness has waned and become marginal. There are patches where data is either stable (such as the US labour market) or moderately improving (Australian housing), but in aggregate, downside growth risks remain. The key risk is…

Are Aquaculture Stocks Worth the Risk?

On 30 August of 2019 micro-cap aquaculture producer Ocean Grown Abalone (OGA) surprised the market with Full Year 2019 Financial Results including a 16% rise in revenue and a stunning profit turnaround of $4,355,176 – rising from a 2018 loss of ($ 3,178,080) to a net profit after tax of $2,247,764 — a 171% shift….

Investor Signposts 02 September 2019

CommSec Chief Economist Craig James previews the economic & financial market events scheduled for the week ahead including the CoreLogic home prices, Reserve Bank Board meeting & US Beige Book. Australia: the ‘Spring Tsunami’ of economic information • In sharp contrast to the previous week, a barrage of new economic information is expected in the…

Battered Silver Mining Stocks Bounce Back

The battered silver miners’ stocks surged in recent months, staging a strong rebound rally. That overdue turnaround was fueled by silver mean reverting higher on improving sentiment after gold’s decisive bull-market breakout. But silver miners still had a challenging Q2, as most of silver’s gains came after last quarter ended. They continued diversifying into gold…

U.S. To “Drown The World” In Oil

The U.S. could “drown the world in oil” over the next decade, which, according to Global Witness, would “spell disaster” for the world’s attempts to address climate change. The U.S. is set to account for 61 percent of all new oil and gas production over the next decade. A recent report from this organization says…

Investor Signposts 26 August 19: Business investment in focus

CommSec Senior Economist Ryan Felsman previews the economic & financial market events scheduled for the week ahead including the CBA Household Spending Intentions, Building approvals & US House Price Indexes. Australia: Business investment and construction activity data in focus The coming week features new data on business investment and speeches from the Reserve Bank Governor…