Trends & Opportunities

Challenges for Australian listed companies

Rising prices, largely driven by the increasingly inflationary environment, are creating challenges for a range of Australian companies. Combined with the transition underway in the energy market, it adds up to a market that benefits from careful stock picking. Changes to the banking status quo The big four may need to be renamed. For so long,…

2022 Outlook: Emerging Markets

It is hard to predict how markets will behave in a year’s time. Still, we believe that most emerging economies’ underlying structural growth trends will continue to drive corporate earnings and returns for investors over the medium-to-long term. While we remain aware of what is happening on the macroeconomic and political fronts, we will stay…

Buy Now Pay Later Providers Under a Microscope

Although the US market trails much of the world — especially Australia — in consumer adoption of what some believe to be a new and revolutionary approach to buying goods, the origins of the current Buy Now Pay Later (BNPL) mania can actually traced back to installment plans in the US as early as the…

Gold mining stocks’ futures ride

The gold miners’ stocks continue to vex contrarian traders, toying with herd psychology. They blasted higher to a key technical breakout in early November, building bullishness. But that was soon dashed on the rocks as they plunged into late November, fueling bearishness. While such schizophrenic action seems capricious, it is all driven by how gold-futures…

What the NFT is the metaverse?

The touted ‘embodied internet’ might take a while to arrive and could underwhelm, even with Big Tech support. Non-fungible tokens, or NFTs, are ownership proof on blockchain technology of the original version of something digital, be that art, characters, tweets, videos or something else. People are paying millions for an exclusive claim on unique digital…

Unravelling the policy of new normal

2021 brought the recovery many had hoped for. Businesses reopened, commuters returned to their desks, and the bravest of us even went on holiday. But no one could describe it as ‘getting back to normal’ amid rocketing energy prices, high debt levels, and past-the-peak growth. These conditions increase the risk of a policy mistake in…

The one thing that’s certain is uncertainty

Bond markets saw plenty of volatility in October as yields spiked. We continue to focus on managing downside risk, but we plan to take some duration risk in longer maturities once yields start to stabilise. The end of October witnessed a large spike in yields and volatility in the Australian bond market. Bond yields have…

Sorting through ASX Agriculture Stocks

Long term investors are often on the lookout for stocks that stand to benefit from emerging global trends. Few would deny that given the burgeoning demand for more and better food, agriculture qualifies as a megatrend. The world’s population is growing and the rapid expansion of the middle classes around the world are propelling the…

Green hydrogen is central to plans to achieve net zero

A cost disadvantage needs to be overcome first. The US has launched a ‘hydrogen shot’ known as ‘111’ for one dollar for one kilo in one decade. The UK intends to be the “Qatar of hydrogen”. Japan wants to be a “hydrogen society”. China, with 53 projects underway, is a “potential hydrogen giant” in a…

Residential Community Village Property Stocks Recovering

Property stocks were hit hard at the onset of the COVID 19 Pandemic but recovered quickly with most still rising. Stocks in the sector that offer lifestyle residential communities and holiday parks have outperformed all but one of the top five ASX listed property groups that specialise in commercial and retail properties with one also…