Author Archive | Ashley Owen

commodity prices

Commodity prices rescue 2019 Budget

The Budget surplus in the 2018-19 year is mainly due to fortuitous tax revenue gains from the mining boom. In the past five years, government spending has risen by an incredible 21%.

Ashley-Owen

The end of six wonderful years for investing

There are enough negative factors in play to suggest great caution with asset allocation in portfolios, as a wonderful run of results for investors came to an end in 2018. Here are four common factors in market collapses.

big banks

The sorry tale of our big banks

The history of the Big Four banks is littered with bad strategies by overpaid executives, taxpayer-funded rescues and a lack of competition. As the banks clean up the Royal Commission mess, Macquarie has overall done better.

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Why dividend yields in Australia are so high

Australian companies have a long and frustrating history of wasting billions of dollars of capital on overseas dreams, and institutional investors should be taking a harder line to protect their capital.

Little room for error in equity markets now

Little room for error in equity markets now

Investors are complacent and expect double-digit profit growth to continue for many years, but the market consensus for EPS growth is now in dangerous territory with more downside potential than upside.

South Africa vs Australia

Baggy Green summit was bottom of GFC

After test matches resumed in 1993, Australia held the upper hand and peaked at the bottom of the GFC. In stock markets, South Africa is edging it in US$ terms but killing it in local currencies.

MF-coal-bag

Commodities rebound still running

In the last seven years, commodity prices and the fortunes of many Australian producers went through a boom/bust cycle and are now on a recovery rebound. It’s a volatile ride but a sector worth another look.

asset classes

Asset class performance and lessons in 2017

It’s been a golden period for investing for those willing to take some risk. Australia has experienced six straight years when everything went up, and this has never happened before in history.

company floats

IPOs, information asymmetry and house prices

When it comes to company floats or IPOs, sellers know much more about the business than buyers, so before getting caught up in the euphoria of a new listing, consider what it is they know that you don’t.

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Stock market winners 10 years on

The intuition is that stock markets should perform in line with an economy’s GDP, but a look at the last decade shows little relationship, and perhaps the opposite is more accurate.