Trends & Opportunities

WAAAX Stocks –Buy, Hold, or Stay Away

About four years ago someone in the investment community decided what Australian investors really needed was our own acronym consisting of heavy-hitting tech stocks, and so WAAAX came onto the scene. The earlier US counterpart – the FANG stocks – consisted of Facebook, Apple, Netflix, and Alphabet (Google). Our own WAAAX acronym includes Wisetech Global,…

Sustainable investing review and outlook

The last year has seen monumental changes in how investors tackle sustainable investing – with what was once a nice to have, becoming a must have for many. Much of this has been catalysed by the pandemic, which has shone a spotlight on the relationship between sustainable business practices and economic resilience. At the same…

The Competitive Landscape in the BNPL Sector

A 14 May article appearing on businessinsider.com.au seems visionary in light of this week’s relevant news on the BNPL Sector. The title was: “Buy now, pay later platforms face a day of reckoning, says Humm CEO Rebecca James” The article quotes the Humm CEO as saying “We are going to start to see – especially…

Top FY 2021 Stocks with Room to Run

Like clockwork the first week of July provides those retail investors bold enough to hold the title of “stock picker” with list after list of prospects – the top and bottom performers for the prior Fiscal Year. The lists vary with some focusing exclusively on the ASX 200 or 300 and others on small cap…

Year in review: Australia

Just recently in June, I celebrated the 18th year anniversary of the Fidelity Australian Equities Fund. I have always managed the Fund for evolution rather than a revolution, and this has served us extremely well, particularly through crises like the COVID-19 pandemic. While the impact of coronavirus on people’s lives has been much more negative than…

Electric vehicles are the next revolution in automobiles

But problems need to be overcome to hasten the switch and cement the climate benefits. For Formula E motorsport, the 2020-21 racing season was transformational. Seven years after electric single-seaters first raced, Formula E gained the elevated ‘championship’ status enjoyed by Formula 1, World Endurance, World Rally and World Rallycross. Then came the embarrassment, the…

ESG investing – Fad or future?

From time to time, investors become irrationally enthusiastic. The important thing to note about these manic moments is that the investment theme underpinning them makes perfect sense. The narratives are rational; it is the market excess surrounding them that is not. In the early 1970s investors became transfixed by a group of seemingly bullet-proof stocks,…

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…

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…

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…