Trends & Opportunities

Apps, backed by ‘dark kitchens’, are changing food delivery

Even though the platform attack is hobbled by poor economics, restaurants are under threat – especially during a pandemic. In 2004, Matt Maloney and Mike Evans were working in Chicago as web developers for appartment.com, a platform that allows people to find rental flats online. The pair often worked late enough to order takeaway. “We…

Is Construction and Infrastructure Spending Coming?

Early in the first trading week of June the ASX 200 rallied yet again to hit its highest close since the 6th of March, with the 3 June closing at 5,941.6, up 1.83% from the previous day. The following day our market hit a new 13 week high. Investors appear eager to accept the positive,…

Oil prices jump on signs of higher demand

US crude prices have reached their highest price since March, on strengthening fuel demand as countries around the world eased travel restrictions they had imposed to curb the spread of the coronavirus. US crude gained 19.7 per cent last week and Brent crude rose 5.2 per cent after a week of bullish news. Both contracts…

A Contrarian View of the Buy Now Pay Later Sector

Bullish investors gleefully ploughing money into global stock markets were given a wakeup call on the morning of 13 May when a leading US-based hedge fund manager called the current stock market the most overvalued since 1999 right before the dot.com bubble popped. This was the second contrarian warning from a key US player this…

Thinking straight in a troubled economy

As markets rally in the face of deep uncertainty, while central banks prop up asset values in the name of maintaining liquidity, straight thinking has become rarer than ever. Fortunately, there are still attractive investments for those willing to stay disciplined and seek out enduring value. ‘Think straight, talk straight’: the motto of Arthur Andersen….

Will gold continue to shine?

The gold price has risen 12% over 4 months, making the precious metal one of the best performing asset classes so far this year. Perhaps more interestingly, the correlation between gold and equities has turned positive for the first time since mid 2019, calling into question its diversification benefit in multi asset portfolios. However, we…

5 dividends questions answered

Q1: What’s likely to happen to company dividends post the onset of COVID-19? Dividends are the cashflows that a company elects to pay out to its shareholders as a reward for holding the shares over time. We hope that if they are good, growing businesses, companies can pay from their profits. They can also dispose…

Covid-19 tearing at the fragilities of Italy and Eurozone

Solutions to appease the crisis face political hurdles. A default or euro exit are possible. ‘il Boom’ is how Italians describe the ‘great transformation’ of Italy over the 1950s and 1960s when a poor country turned itself into a modern industrial powerhouse with a stable currency, the lira. During those decades, rural southern Italians flocked…

Oil below zero: bad, but not that bad

The plunge into negative prices for US WTI oil produced some shocking headlines, but is due to a technical effect of the futures market. Oil fundamentals are weak – but Monday’s price move should be seen as an outlier.  Monday’s plunge in oil prices was both fascinating and unprecedented. US benchmark futures prices for West…

WAAAX Stocks Rising

In mid-March of the year 2020 anxious investors worldwide began to return to stock markets. The fastest descent into Bear Market land dramatically reversed course to produce the fastest return to a Bull Market in history. The carnage lasted about a month, with some stocks spared the worst of the panic selling. Others did not…