Many investors who hold offshore securities do not realise that much of the return comes from the FX hedge rather than the asset itself. And now US rates have risen, the benefit for Aussies has turned around.
Tag Archives | US shares
Despite what the textbooks tell us, a world of more dominant players has not led to higher prices. How does this affect investing?
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.
Platinum’s Kerr Neilson shares his insights into long term investing in global markets, especially the disruptive effects of technology and globalisation. And always with a focus on the price of a stock.
The claims that the leading tech companies are expensive overlooks the sustainable and growing earnings, plus they have new developments which have only scratched the surface.
Amazingly, Australian and US stock markets have delivered the same returns for their home country investors over the very long term. With the recent US strength, it’s more likely to fall further in the next bust.
Since the 1900s, share market returns for US and Australian investors have been similar over the long run, but lately, US shares have outperformed with the current tech boom. How about +66% versus -2% since 2007.
It is widely believed that rising bond yields should be bad for share prices. But is this true in real life? The relationship between government bond yields and the price of shares is more complex than it first seems.