Each year, billions of dollars are invested into social programs that aim to address some of the world’s biggest challenges, from a lack of access to education, healthcare, food and/or water through to natural disasters and much more. As such, social investing (also known as impact investing) has become topical with a recent report suggesting […]
Global shares have been going through a bit of a correction. Apart from worries about global growth, a range of ‘event risks’ have been playing a role: the Ebola scare, Iraq’s deteriorating security situation and a terrorist threat posed by Islamic States (IS), Hong Kong’s extended pro-democracy protests and Ukraine’s stalemate with Russia. Here is […]
Investors plunging into residential property have been warned by the Reserve Bank of Australia (RBA) that they are taking on risks when prices are already high and growth in rents has slowed. Following October’s Board meeting, the RBA indicated that property prices had continued to grow into the September quarter. What’s been driving prices? The […]
1. Price of iron ore has fallen dramatically The price of the steel-making ingredient iron ore has been on a downward trend since 2011. The impact of this for Australian share investors is that a decline in commodity prices negatively impacts the profits of miners and adversely affects share prices. 2. China cools down Concerns […]
With share valuations in emerging markets looking relatively cheap compared to those in developed markets, we explore what investors need to look for before taking the plunge. Be selective While emerging market shares are relatively cheap, the current health and future prospects of individual countries within this segment can differ significantly. Therefore, while we expect […]
1. Compare this year’s annual report with last year’s annual report. Check that the activities detailed in the current annual report are the same as what the company said it was going to do in the previous year's report. Consider whether the company has achieved the goals it set out for itself, and if this […]
The story so far… After sharp interest rate cuts by the Fed at the outset of the global financial crisis, quantitative easing (QE) began in November 2008 with the Fed buying US$1.25 trillion of mortgage-backed securities and $175 billion of agency debt in order to boost money supply. With few signs the US economy was […]
The growth in online shopping has caused some to question how this will affect traditional retail stores, and what this effect will ultimately have on investments. In this article we examine some of the opportunities investors can consider in light of the rising trend of online shopping. Companies that are able to capture new revenue […]
The outlook for banks We believe that banks look fully priced for a rising market. The key weakness of the Australian banking system is a low level of deposits relative to loans. To cure this, banks are ‘overpaying’ for deposits, and it’s our view that this isn’t going to change any time soon. Indeed, this […]
More work to be done to stimulate the economy Rates have been reduced to help stimulate the economy. Lending rates on housing and business loans have decreased, and this has seen a pick-up in house prices, approvals to build new homes and some improvement in retail sales. However, the Australian dollar remains high, and with […]