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How to spot the best stocks in 2021

Keeping an open mind about stock selection will be crucial next year. If investors find a good idea, they must try to ensure perceptions about the short-term macro outlook don’t inhibit their decisions. What 2020 has taught us is the importance of understanding the: motivations of politicians under pressure psychology of consumers in unique circumstances…

How to spot the best stocks of 2021

Keeping an open mind about stock selection will be crucial next year. If investors find a good idea, they must try to ensure perceptions about the short-term macro outlook don’t inhibit their decisions. What 2020 has taught us is the importance of understanding the: motivations of politicians under pressure psychology of consumers in unique circumstances…

Christmas comes early for investors

Financial markets look set to enjoy a merry holiday season, as hard and soft commodity prices surge. Housing markets are also powering ahead, fuelled by undersupply and low interest rates, albeit with some signs of deteriorating credit quality. Yet amid the celebrations, highly optimistic valuations continue to give us pause, especially given the renewed focus…

The transition to renewable energy

Australia’s electricity system is undergoing unprecedented change arising from the proliferation of renewable energy generation, with South Australia and parts of the National Energy Market (NEM) already reaching the highest level of renewable penetration in the world. While such rapid transition is positive for our decarbonization efforts, our exiting grid system is not designed to cope with…

Vital Signs: The importance of the Treasury Secretary

It is widely tipped that US president-elect Joe Biden will nominate Janet Yellen as Treasury Secretary – one of the most important posts in any administration. She will make for a terrific Treasury Secretary, bringing with her a wealth of experience and a lot of IQ points. Her appointment also signals what kind of president…

Is inflation inevitable?

Apart from a couple of oil-related spikes, you have to go back 30 years to find inflation consistently above 5pc. Since the early 1990s, consumer prices have risen less than 2-3pc a year most of the time. For the last ten years, much less. This matters to investors for two reasons. First, it takes the…

Winners and Losers in the Wake of Positive COVID 19 Vaccine Results

Australian investors already enthused over the continuing evidence of economic recovery here got an added boost of investing adrenaline upon the news of progress on a vaccine for COVID 19 from global pharmaceutical powerhouse Pfizer Inc. (NYSE: PFE.) In a classic example of shooting first and asking questions later global market participants en masse focused…

Investing in aged care and childcare almost pays for itself

In the absence of an official analysis of the impact of the budget by gender the National Foundation for Australian Women has this morning published its own gender analysis of the budget, across multiple dimensions. It finds the government has invested heavily in things that will mainly benefit men, including apprenticeships and traineeships (two-thirds of…

Investor Signposts: Week Beginning 19 October 2020

Australia: Reserve Bank Board minutes, Deputy Governor speech and retail trade data in focus In Australia over the coming week, the highlights are a speech from the Deputy Reserve Bank Governor and the preliminary retail trade report. The Reserve Bank’s Board minutes will be heavily scrutinised for clues about a potential interest rate cut. The…

The budget tax cuts make fiscal sense

This year’s budget is something of a play in two acts. Act one involves large economic stimulus to help plug the hole in output generated by the coronavirus pandemic. Act two tries to set Australia up for a bounce back in economic growth and employment that involves more than just waiting for the pandemic to…