Analysis & Opinion>Trends & Opportunities

5 government debt myths

Summary As we approach a rising rate environment, the scale of U.S. federal debt has some investors concerned about the sustainability of government finances in the coming years. In this bulletin we consider the most common myths about the government’s debt and discuss how investors can position their portfolios to withstand what we believe are manageable…

Gold bullion or gold equities?

Financial-market turmoil is strengthening the case to add gold exposure to portfolios as more “insurance” in the event of a sharper equities market sell-off. It is also providing an opportunity to capitalise on the precious metal’s improving medium-term prospects. Gold’s role as a ‘safe-haven’ has come to fore this year. The US-dollar gold price has…

Go on Defense with High Yielding Utility Stocks

The latest chapter in the never-ending saga of “Can the Greeks Pay their Bills” adds another brick in the wall of worry for Aussie investors.  In reality many analysts claim a Greek Exit, or Grexit, from the Eurozone and/or the European Union will matter little. Add the Grexit to current concerns about our economy and…

Stocks to win from cloud computing boom

Disruptive technologies are new ways of getting things done that “disrupt” current ways of doing things.  History is replete with examples of disruptive technologies dating back to mankind’s first spear.  A contemporary example is cloud computing, which frees consumers and corporations from the burden of housing computing resources at their location. What is being billed…

4 Healthcare stocks for punters

High-minded investors and analysts bristle with indignation at the suggestion that investing in a stock is little more than gambling.  The term “punting” has historically referred to activities like race track gambling; but it has entered the investing lexicon as a means of separating seemingly foolish speculation akin to gambling from “true” investing. Taking a…

The China Threat

There are no shortage of worries for investors these days but at the top of the list is China. The following chart illustrates how important China has become for our Gross Domestic Product (GDP): The Bank of America Merrill-Lynch survey of international fund managers polls large funds with assets under management in excess of $708…

4 Reasons why we should expect a lower Australian dollar

By Geoffrey Garrett The response to US Federal Reserve Ben Bernanke’s comments about the possibility of ending its policy of quantitatitive easing has helped evoke a global sell-off as markets question his upbeat assessment of the US economy and express concern about a withdrawal of cheap money. Weaker manufacturing figures from China have also helped…

Online Businesses The Winners This Earnings Season

Investors are always looking for clues for hot stocks to buy and the recent flurry of earnings reports points to a potentially powerful indicator of future growth – online presence. It is no secret that online sales are on the rise globally.  Some of Australia’s best performing stocks operate exclusively online and in many cases…

Markets Require Regulators Not Watchdogs

Markets require regulators. As Adam Smith, the champion of the invisible hand, notes in The  Wealth of Nations, when individual interests are left unregulated they work to turn competitive markets into monopolies. But what happens when regulators meant to check individual interests fail to promote the public interest? Consider Australia’s banking sector. The banking royal commission has…