Trends & Opportunities

Modern Gold-Digging: From Prospecting to Prospectus

After gold’s stellar run over the past decade from $275 to $1,500 an ounce, many investors who were slow to get on board are kicking themselves over missing the boat.  However despite the recent volatility and a raft of downgrades to forecasts for commodities prices, many analysts are still gold bulls. HSBC analyst Jim Steel…

The Energy Sector – An Uncertain Future

A nuclear energy crisis of global proportions. Political turmoil in the Middle East. Floods in Queensland’s coal country. Each of these largely unpredictable recent events has shaped the energy sector, both in the short-term and the extended horizon.  Joseph Stanislaw, an independent senior adviser on energy issues to Deloitte, observed that “in the past year…

Attractive Term Deposit Rates For The Taking

What a difference a few weeks can make to capital markets: As recently as January, economists and analysts alike were expecting two, possibly three hikes to the Reserve Bank of Australia’s (RBA) current interest rate of 4.75 percent later this year. Fast forward to early April and there was no one holding their breath for…

Opportunities In Australia’s IT and Telco Sectors

The IT sector in Australia – including software, hardware, semiconductors and related services – is dominated by foreign companies. Taking advantage of a highly skilled workforce and superb research infrastructure, global IT powers such as IBM, Canon, Cisco, Google and Infosys have built facilities Down Under for product development, digital content production, and technical assistance….

Taking the pulse of the healthcare sector

The variety of subsectors in the healthcare sector, from hospitals to biomedical technology to pharmaceuticals – just to name a few – makes it difficult to generalise about ‘healthcare’ as an investment pick. Within the sector, there is opportunity to invest defensively, to target value, and to gamble on the potential for tremendous growth in…

The Construction Sector – A solid long-term pick for growth investors

Recent data indicates that Australian construction activity contracted for the ninth consecutive month in February. Yet the engineering construction subsector, buoyed by an increase in new orders, saw considerable gains and expanded slightly last month. The Australian Industry Group’s Performance Construction Index, released in conjunction with the Housing Industry Association, showed that overall, the construction…

2011 – Experts Predict Aussie Sharemarket and Economy

The Aussie dollar is strong, our terms of trade are at unprecedented heights, and unemployment is at a two-year low. But what does the future hold for the Australian economy and our sharemarket? In the past year, the mining sector has compensated for underperformance in other areas, such as construction. Of course, enthusiasm for the…

China: What Goes Up Must Come Down

As the United States and Europe attempt to claw their way out of a financial crisis, Aussies have been patting themselves on the back for hitching their economic wagon to China. China’s rapid growth has provided a strong demand for Australia’s abundant natural resources. And Australian businesses have enjoyed prosperity across the board, not just…

The Mining Tax Showdown

The announcement Wednesday by mining giant BHP Billiton of record Australian half-year profits, exceeding $10 billion, has re-ignited the debate over the Mineral Resource Rent Tax. The MRRT’s predecessor, the Resource Super Profits Tax, was a factor in the downfall of former prime minister Kevin Rudd. Before the August election, current Prime Minister Julia Gillard…

Will The Housing Bubble Pop?

As Aussie housing prices have risen dramatically in recent years and LVRs have skyrocketed, leading economists and investment advisers have weighed in on the issue of whether Australia is experiencing a “housing bubble” and, if so, whether it will eventually “pop” or quietly deflate. Today we summarise several perspectives: 1.    Steve Keen, Assoc. Prof. in…