The Global Chief Economist of a leading asset manager has taken one question more than any other in recent months. People are both transfixed and bemused by Bitcoin, but there is a chance its value may fall to zero.
Listed infrastructure is a large universe of more than 350 companies worth more than US$4 trillion at prevailing market prices. This way of entering the asset class offers several advantages over the unlisted alternative.
Continuing our look at ‘safe havens’, gold and bank deposits are often considered alternatives to ‘risky’ shares. How have they performed in times of stress, and do they rate as long-term investments at other times?
Hybrids are complex instruments but they can be viewed as a bond with an embedded option, and they convert to equity in certain circumstances. Investors should consider the risk of this happening.
There is about 19 times more silver than gold in the earth, but the gold price is 78 times higher, and silver has far more uses than as a store of wealth. Is it silver’s time to shine?
Hybrids are no more ridiculous than shares for retail investors, especially bank and insurance company issues. The increase in common equity in banks has improved the quality, but investors must be paid for the risk.
Investors received a wake-up call to the potential risks of hybrid and subordinated securities following the collapse of Banco Popular Espanol, and the price falls in Australian hybrids shows the market took notice.
Bitcoins are experiencing a massive price hike, and there’s little history to draw on to guide the future. However, another market provides a remarkable insight into what can happen when the optimism turns.
It’s human nature to want to join the fun when prices rise rapidly, especially with stories of a few dollars turned into millions, but these are the times to treat with the utmost caution.
The renewables industry is hampered by the combination of a shallow venture capital market and capital-intensive technology. The recent power outages in South Australia did not help.
After some poor experiences during the GFC, hedge funds offering uncorrelated returns have greater appeal as traditional markets struggle, but don’t pay up for simple market exposure.
Disruption across many industries often makes it easier to pick the losers than the winners. Short-selling can play an important and legitimate role in an investment portfolio, although it continues to attract criticism.
Renewable energy production is growing due to technology driving significant cost reductions and improvements in energy efficiency. Carbon reduction targets, tax schemes and our social conscience also help.
Impact investing is no passing fad, with an estimated $32 billion to be invested over the next decade in Australia alone. This article looks at just one example of an impact investment, the Balanced Water Fund.