investing

Scarcity drives opportunity

Scarcity is a prime mover in capitalist economies. The scarceness of a good drives price movements, substitution into alternatives and innovation to create workarounds. The unfettered pursuit of these responses allows for the smooth functioning of the economy and means that capitalist societies rarely face the line-up-in-a-queue shortages that have become the hallmark of more…

Investor Signposts: Week Beginning 21 June, 2021

Australia: Retail spending, trade, jobs and wealth data in the spotlight Preliminary retail and international trade data headline another busy week on the Aussie data docket. Purchasing manager indexes will be closely observed as will jobs and wealth figures. The week kicks off on Monday when the Bureau of Statistics (ABS) issues preliminary retail trade…

Why dividends make sense in an inflationary environment

The fallout from Covid-19 put pressure on corporate dividend payments in many sectors and markets. Now, as economies recover and earnings bounce back, dividends worldwide are poised to rebound. At the same time, while widespread fiscal stimulus may push the global economy into a period of higher inflation, history shows how dividend-focused investment strategies can…

Big US Stocks’ Q1’21 Fundamentals

The red-hot US stock markets continue to power inexorably higher, fueling extraordinary complacency and euphoria.  With stocks riding an extreme deluge of Fed money printing, selloffs are minor and far between.  But are these seemingly-perpetual gains to endless lofty record highs justified fundamentally?  The big US stocks’ winding-down Q1’21 earnings season illuminates how these elite…

Why middle-aged entrepreneurs do better

Bill Gates was 21 when he and Paul Allen registered Microsoft. Steve Jobs was 22 when he and Steve Wozniak launched Apple. Mark Zuckerberg started Facebook in his Harvard dormitory. The biographies of these tech billionaires who achieved great success in their twenties has helped cement the perception that entrepreneurship is a young person’s game….

Copper Rising

Today more than ever copper stands at the top of the heap of the commodities pile as a bellwether for the global economy. Regardless of its label as a barometer or a “canary in the coal mine” the vast list of applications for the metal have earned the right for its prophetic accolades. Copper is…

Will Oil Hit $80 This Summer?

India, the world’s third-largest oil importer, is the latest coronavirus hotspot. It has recently hit a record-breaking number of new daily coronavirus cases—a statistic that dented oil demand and pressured oil prices. OPEC+, out of its own necessity, has intervened in the oil market on the supply side of the equation to offset the pandemic-depressed…

Investor Signposts: Week Beginning 3 May, 2021

Australia: Reserve Bank dominates proceedings A bevy of economic and financial events ushers in the month of May with the Reserve Bank firmly in the spotlight. The week kicks off on Monday when IHS Markit and AiGroup both issue manufacturing purchasing managers indexes. The Melbourne Institute inflation gauge is also due with ANZ job advertisements…

Buy High, Sell Low

Young or old, newcomers to share market investing looking for advice find two competing investing strategies: Buy Low, Sell High Buy High, Sell Higher More difficult to find is the view expressed by many market experts that far too many retail investors follow a different strategy: Buy High, Sell Low There is comfort in numbers…

8 cyclical stocks to play the recovery

The environment of the market has shifted dramatically. With whispers of inflation, bubbles and bond yield prices rising, we have adapted our portfolio to reflect the evolving market. In this article Vince Pezzullo, Deputy Head of Equities discusses why cyclical stocks are an attractive part of the market and reflects on reporting season and the…