Devices connected to the internet, not just phones and laptops, are increasingly part of everyday life. Soon, it will be our lights and doorbells, and later, almost everything.
The tightening of credit conditions for home lending driven by the Royal Commission has not fully translated into aggregate statistics, and the slowdown may already be worse than we realise.
Investments that offer some element of tax effectiveness or tax breaks can be good, but it’s unwise to make investment decisions, both buying or selling, based solely on beneficial tax treatment.
The attributes of great growth companies are not all contained within the numbers that look at the recent past. Investors need to analyse the industry growth trajectory, the barriers to entry, and the corporate culture.
Despite what the textbooks tell us, a world of more dominant players has not led to higher prices. How does this affect investing?
Although over one million Australians are trustees of SMSFs, ASIC reports that many do not have the expertise or time to take responsibility to manage their own superannuation.
The SMSF of a person who has lost mental capacity faces multiple risks including the fund’s control falling into wrong hands. These risks can be guarded against with a proper strategy in advance.
The 2008 GFC actually started a year earlier in the global credit markets, but the equity markets ignored the warning signs. With hindsight, everyone had the chance to exit shares at elevated prices.
The high yield debt market is now much larger and riskier than just before the GFC. That doesn’t bode well for when the next downturn happens and investors have several options to de-risk.
Non-banks are claiming market share from banks in many forms of private debt, and it’s changing the nature of funding for many small to medium businesses.
Active managers trade more often and in larger amounts than passive managers do. Costs incurred from trading, in aggregate, can be substantial and ought to be considered in the decision to use active strategies.
A reader responded with detailed comments on the need for board members and the Chair to have relevant expertise in the company’s industry. Please join the debate.
The concept of factor investing has been around for decades and features in many portfolios. A considered and patient use of factors can enhance investment performance but not short term in all market conditions.
Australian investors with foreign currency assets must consider whether to hedge the currency exposure, but the overall context of their portfolio is relevant or losses could be magnified.