Company valuations will react differently to market conditions, and a stock priced for rapid growth in earnings may be most vulnerable during a market shock or downturn. Lessons are drawn from Howard Marks.
Archive | Investment Strategies
5G is coming: who wins and who loses?
The introduction of 5G will deliver more data faster, but the major impact is likely to be pushed into 2020 and beyond. As with all new tech, there will be winners and losers.
How is 2019 different from 2018?
The rise in bond rates in the US in 2018 has tilted investment opportunities away from the easy choice of collecting higher dividends on shares, and now, greater prudence is required.
Top 10 ESG issues for 2019
More investors than ever are expecting fund managers to allow for Environmental, Social and Governance (ESG) issues, but what are the major factors for 2019?
How populism heightens portfolio risk
The worldwide trend to populism loosens fiscal restraint, leading to asset price inflation and forcing investors to focus on a range of low probability but potentially material risks.
Have Your Say in 2019
Welcome to the ‘Have Your Say’ section. We have received thousands of comments on articles over the years, but here is a chance for you to set the agenda. Comment on any subject relevant to our audience.
Watch for LICs that never return to par
Some investors buy LICs at a discount in the hope of extra gain when the discount is removed, but it might never happen. There’s a way of judging the discount relative to its historic norms.
The ‘founder’ mindset of an astute investor
Founder-led companies and ‘entrepreneurial investors’ make better, calculated judgements and tap into experiences which give them an advantage over more conservative investors.
Government bonds always have a role in diversified portfolios
Government bonds do not feature in most retail portfolios, but they carry defensive qualities with income to offset the higher risks in other asset allocations. Are they always worth including?
Why bother investing in government bonds?
Government bonds produced good returns last year, but at the current starting position of lower rates, the cost of defensiveness is probably a limited payoff.
Know what you own in complex markets
In some markets, the sheer volume of money flows into both good and bad companies, but when tougher conditions inevitably come, it’s the quality earnings that sustain.
Trading trends feature global moves
Notwithstanding the popularity of ETFs, Australians are increasingly trading directly on foreign exchanges as online brokers make execution easier. But traditional local names remain popular.
Great investment expectations are deluded
Many investors are deluding themselves expecting high returns without taking risks, and it has poor consequences for retirement planning and setting goals. It pays to be more realistic.
Watch for one rule that applies to all assets
Most investors think the relationship between interest rates and prices only applies to fixed rate bonds, but the rate impact on discounting future cash flows applies to all income-producing assets.
