Trends & Opportunities

Consumer Spending Research Bullish for eCommerce

It might seem like an eternity since the world began to heave a sigh of relief on 9 November of 2020 as global pharma giant Pfizer announced its COVID 19 vaccine candidate was found to be more than 90% effective in preventing COVID. At that time Australians could take some pride in the stellar performance…

Emerging markets time to shine

As COVID-19 battered the world’s economies last year, emerging markets were among some of the hardest hit; they also saw one of the better recoveries when equity markets rebounded towards the close of 2020. This strong recovery has hit a few headwinds though, with fresh or continuing waves of COVID-19 putting differing levels of pressure…

BHP Makes Some Big Moves

Divestment is a term known to stock-pickers everywhere. When a holding or a prospect in an investor’s portfolio “divests,” or sells off one of its assets, the divestment can be a market mover, for good or bad. Be it a subsidiary company or interests in another company or an operating asset or one with profit…

Could a gold-stock reversion be due?

The gold miners’ stocks are still languishing deeply out of favor, largely left for dead. Their low prices are collateral damage from this past summer’s anomalous pair of extreme gold-futures-selling episodes on Fed-tightening fears. But this bombed-out sector is due for a major mean reversion higher. Gold stocks’ technicals, sentiment, and fundamentals are all aligned…

Vital Signs: the Greens’ super-profits tax idea

Earlier this year, the Australian Greens proposed a wealth tax on billionaires straight out of the (former US presidential candidate) Elizabeth Warren playbook. This week it added what it called a “tycoon tax” that would tax so-called super-profits made by companies with annual turnovers of more than A$100 million. It might not be the winner…

Double Digit Earnings Losers with Double Digit Earnings Growth Forecasts

Twice a year Aussie investors who pick their own stocks run the gauntlet of earnings season. Full Year and Half Year Financial Results open the door for big and sustained gains or losses. To add to the mania there is the strong possibility the gains or losses will be fleeting, evaporating within days. As is…

Why Coles and Woolworths are using robot warehouses

As lockdowns continue across Australia, many households are doing something they may not have considered just 18 months ago: ordering groceries online. Australia’s supermarket duopoly, Coles and Woolworths, have raced to implement new technology and transform labour arrangements to keep up with the e-grocery boom. Both are investing in “smart” warehousing and distribution systems with…

Lessons learned over the past 12 months

As we head into the new financial year, we feel really excited by the stocks and exposures we have in both the long and short book. However, if FY21 has taught us anything it is to keep an open mind and learn from where we got things wrong. After contributing 270bps of alpha for the…

52 Week Highs that Could Go Higher

When an attractive stock on a retail investor’s watchlist hits a 52 week high, the question to answer is will it go higher. Of the many newcomers to share market investing in the recent past, those who have gone beyond social media to learn how stock markets work have surely encountered a prevailing strategy for…

Global growth weighted in favour of emerging markets

With emerging markets set to make up more than 62 per cent of world GDP by next year – up from 54 per cent – now is perhaps the time to seriously look at including an emerging market exchange traded fund in your portfolio. Rachel White, head of product management for Vanguard Australia, says there…