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.
Tag Archives | equities
Labor thinks disallowing excess franking will generate billions of dollars of additional revenues, but there is growing evidence that behaviour changes will severely limit the amount raised.
Those who worry about a tough year for shares in 2019 should not overlook the risks in fixed rate bonds, which might not be the defensive play required at this time. Better to watch for the bargains the share market will offer.
The sizeable increase in the market capitalisation of the technology leaders has inadvertently led to reduced diversification via a reduction to a mid cap exposure in portfolios represented by the Russell 1000.
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.
Many ‘baby boomer’ retirees contemplating decades of retirement prefer a sustainable lifestyle based on a steady income that keeps up with inflation. New perceptions of risk are required to meet such income demands.
The idea that stocks should be divided into growth and yield categories diverts us from fundamentals. Intrinsic value eventually manifests in higher cash flow, whether or not share price appreciation anticipates it.
Companies ranked 51st to 100th by ASX capitalisation are in the mid-cap sector. They have better historic returns, industry diversity, insider ownership, and growth prospects than the S&P/ASX50.
Markets and assets look expensive, but technology at least offers high revenue growth and fast rates of adoption. However, much of that great promise may benefit consumers more than investors.
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.
Earnings downgrades are not always bad news. They may present buy-side opportunities if the stock is oversold. It’s best to assess the circumstances via a checklist without panicking.
Sticking to a long-term ‘set and forget’ asset allocation plan forgets those close to or in the retirement phase. Further, we are at a point where prospective returns in all markets are lower.
Market fundamentals are pointing toward an era of high volatility and lower returns, which have not been factored into current prices. Better to wait till there is blood in the streets rather than be fully invested.
There are more opportunities on offer in the larger and more diverse economies overseas, especially in companies with sizeable untapped market potential and an insulation from normal market forces.