investing

Shaping investments for the future

With significant demographic shifts occurring around the world, one useful approach for investors is to use demographic themes and trends as a compass for future investing. Focusing on companies that will benefit from slow moving, long duration and highly predictable demographic trends can help investors predict areas of future opportunity. There are three main themes…

Is the best behind us?

There are plenty of reasons to believe historical levels of profitability in high-rated stocks will not recur. Accordingly, we are positioned for a transition to companies trading on lower multiples. Groucho Marx, as always, nailed it: “Those are my principles, and if you don’t like them…well, I have others.” Central banks, politicians, and investors are…

Investor Signposts: Week Beginning 4 October 2021

Australia: The Reserve Bank Board provides an update There are holidays in NSW, ACT, Queensland and South Australia to kick off the week on Monday. On what is looming as ‘Super’ Tuesday, the Reserve Bank Board meets. The Board will update its views on the economy but no changes in policy settings are expected. In…

Gold Miners Hitting 52 Week Lows

During the trading week beginning on 27 September, twelve ASX gold miners hit 52 week lows. From the Top Ten mining companies, five felt the pain, including the three largest miners on the ASX. Here are the eleven, listed by market cap: Newcrest Mining (NCM) $18.5 Billion Northern Star Resources (NST) $10.1 Billion Evolution Mining…

Investor Signposts: Week Beginning 27 September 2021

Australia: Into the December quarter In the coming week, retail trade, job vacancies and housing-related data dominate the Aussie economic calendar as we begin October and enter the final quarter of 2021. The week kicks-off on Tuesday when ANZ and Roy Morgan jointly release the weekly consumer confidence survey. A lift in vaccination rates alongside…

Should we be worried about global markets?

TS Eliot was wrong. September, not April, is the cruellest month for investors. The S&P 500 has risen in this month just 45pc of the time since the Second World War. February is the only other month that has also delivered a decline on average over that period and it’s been less than September’s 0.56pc…

Retirement: How to beat inflation

Investors with long memories – or a good education – will recall the bad old days when inflation was the economic bogeyman. It broke Germany’s Weimar Republic in the 1930s and nearly cratered America’s economy in the 1970s. Fortunately, inflation has been a non-issue in Western economies for decades. But is that about to change?…

ASIC the corporate lapdog

The implosion of Australia’s corporate watchdog, the Australian Securities and Investments Commission, under the federal government’s new directions, has gone from tragedy to farce. ASIC was described as “weak, hesitant and timid” in a 2014 Senate review of its performance. To be fair, that was before ASIC’s current leadership. Now any assessment could add “dazed…

Reporting season wrap up

This year’s reporting season illustrates the value of long-term company plans in a volatile economy. While continued lockdowns mean Australia hasn’t yet moved into a recovery phase, opportunities still await patient investors. Investors looking long term This year’s reporting season has revealed a fascinating divergence between companies with strong short-term results and those attracting investor…

Why you should diversify your portfolio

When it comes to success stories, the ASX includes many brands that have made their mark. Companies like BHP and Commonwealth Bank are among the largest in the ASX by market capitalisation. These businesses belong to two industries, financials and materials, that account for roughly half of the ASX by market capitalisation. While healthcare now…