Deliveroo exiting the gig economy
Deliveroo’s decision to quit the Australian market, after what have been boom times for food delivery platforms, may seem surprising. But the writing has been on the wall for some time. The British-based platform – one of the first to start operating in Australia – announced yesterday it was going into voluntary administration. It cited…
Creating a better risk reward balance
The reset in yields over 2022 has been a painful process for investors. However, with tentative signs of a peak in inflation and improved valuations for corporate debt, outlook is more constructive for fixed income assets and generating positive returns. Have we seen the peak in growth and inflation? The current macro backdrop of high…
Lessons we can take from history during volatile times
It’s been ‘one step forward, two steps back’ for investors just recently – every piece of positive news on the markets is followed in short order by something else to shut down hopes once again. Take a look at the always-important US market in recent weeks. The S&P 500 rose by 2 per cent on…
A fund manager’s guide to turning down the volume
Investment theory is easy. It’s the execution that’s hard. Warren Buffet famously said, “We need to be fearful when everyone else is greedy, and greedy when everyone else is fearful”1. It sounds really simple but it’s actually much harder to execute. Periods of volatility and financial downturn present us with a great opportunity to buy…
Initial Public Offerings in Tough Times
The multitude of new investors in global stock markets may be more susceptible to the siren song spun by the influencers of an upcoming IPO. Key among the lures are the opportunity to “get in on the ground floor.” Sadly, for many investors that ground floor can collapse. Investors are exposed to impressive price gains…
Market love and unfaithfulness
The love of growth is the root of all of evil, including corporate losses, lousy cash flows and inflation. Some companies – and whole economies – are starting to pay the price of their unfaithfulness to sound business principles and economic discipline. The ASX rallied sharply in July on expectations central banks would lose their…
Investment Outlook: Into the unknown
A hard landing looks increasingly likely due to tightening financial conditions, the soaring US dollar, an energy crisis in Europe, and China’s weak economy. Investment implications Winter is coming to the northern hemisphere. With it arrives an energy crisis that will affect much of Europe as the ongoing war in Ukraine severely disrupts the region’s…
Now is the time to myth-bust investment truisms
For pretty much all of my working life, we have been able to hold onto a handful of truisms about investment. Expressions like ‘time in the market not timing the market’ become investment adages because their truth endures through the ups and downs of the cycle. But sometimes, as Jim Callaghan noted about politics in…
Sustainable investing is likely to drive long-term returns
“Expert” investors are more likely to believe that investing sustainably is key to driving long-term returns compared with their peers who rate themselves as less knowledgeable, research by Schroders has found. The finding is from Schroders’ Global Investor Study 2022, the bellwether annual survey which highlights trends based on the answers and opinions of more…
The impacts of deforestation on investors
Just as humans have towns and cities, the living world has forests. They are nature’s melting pot – home to countless forms of animal and plant life. What’s more, they play a critical role in stabilising our climate. Trees, plants, and bushes absorb carbon dioxide, sunlight and water, then convert the water into oxygen and…
