[COMMENT: Now this is very interesting. An experienced funds manager being told by an ethnographer that his research methods are all wrong. This supports the views that many chartists and technical analysts have about the methods for selecting investment candidates in the financial markets – that the methods of the majority of professionals in the … Continue reading
(11 May 2018, AFR, p31, by Sarah Turner) ‘Investing in the current crop of market darlings could be a flawed strategy given their expensive valuations, and the risk that central banks remove their implicit safety net that has emboldened risk taking by investors. That’s the view of that Schroders’ head of Australian equities, Martin Conlon, who singled out some … Continue reading
(11 May 2018, AFR, p31, by Jonathan Shapiro) ‘Top London-based analyst firm Absolute Strategy Research says the equity market rally is at risk from a slowdown in China and further tightening of monetary policy by central banks. “If you’re looking for that last hurrah it could happen, but you’re dependent on policymakers getting it right,” ASR’s … Continue reading
(7 May 2018, AFR, p22, by Vesna Poljak) ‘The confession season has started on an optimistic note, with most companies able to hold their earnings forecasts, but further downgrades cannot be ruled out as the weather and industry-specific issues detract from reasonably strong economic activity.’ Read more (and see more charts and tables) at AFR.com … Continue reading
(25 April 2018, The Age, Money supplement, p2, Christine Long) ‘A financial planner may enter your life through the recommendation of a friend or family member or an introduction via your bank. But that doesn’t mean you should simply hand your money over. As the Hayne Royal Commission is highlighting some thorough investigation is needed … Continue reading
(25 April 2018, The Age, Money supplement, p1, John Collett) ‘There are no quick fixes to curb recurrences of the shocking revelations at the banking royal commission concerning financial advice. But there is a move you’d think would be obvious: licence planners individually.’ <snipped…> ‘… I recall the experience of a 61-year-old cancer patient. She showed me her … Continue reading
(24 April 2018, AFR, p25, by Yolanda Redrup) ‘Comparison website iSelect is searching for a new chief executive after declaring a huge downgrade to profit guidance due to a slump in activity that shows no sign of improving, even into the company’s busiest time of the year. ‘ Read more at AFR.com (might need AFR … Continue reading
(19 April 2018, AFR, p27, by Patrick Commins) ‘Given how allergic investors are to any talk of higher central bank rates, it’s somewhat perplexing experts have largely been happy to dismiss the impact of climbing short-term yields here and abroad. Take the London Interbank Offered Rate. Libor, as it’s known, is the first step in … Continue reading
[COMMENT: Here is a good insight into the background for some of the apparent hype that we read in the social media and online discussion forums. Investors beware!] (17 April 2018, AFR, p11, by Jemima Whyte) ‘On March 28, when locals were on constant thunderstorm-watch, a group of six men stood in front of a 12-seater, … Continue reading
[COMMENT: This is a good case study example of ASIC getting involved with the issues of running listed companies.] (13 April 2018, The Age, Business, p20, By John McDuling) ‘Fines from regulators. Funding rounds, and false reports of funding rounds, involving powerful investors. Founder departures. Staffing changes. Shareholder tensions. Welcome to the wild ride that … Continue reading
[COMMENT: Here is a salutary lesson for investors who purchase shares in a company, including supposed blue chip stocks. In the case of Myer, anyone who didn’t spot the declining share price over a long period, or who decided to hold on and prayer for a turn around, if the share parcel value has declined … Continue reading
[COMMENT: I have to comment on this article – in my own humble opinion, it is mostly bunkum – based on the so-called classical investing theory, which many shorter-term nimble investors do not believe in. In the minds of many people, the old ‘buy-and-hold’ strategy is as useful as some people make it out to … Continue reading
[COMMENT: Here is a good case study of some of the issues that can take place with small cap stocks. Good lessons for the investors in such stocks.] (24 March 2018, AFR, p25, by: Jemima Whyte, Jonathan Shapiro) ‘Otsana Capital, a Perth stockbroker that rates its employees as either “lone wolf” or “good wolf”, is attempting … Continue reading
[COMMENT: This revealing news story is an eye opened about how some companies finance their operations. Investors beware.] (20 February 2018, AFR, p16, by Jonathan Shapiro) ‘Big Review TV, a subsidiary of ASX listed Big Un Limited, granted security over its assets to FC Capital, the small business lender that is advancing funding to facilitate the … Continue reading
(15 February 2018, AFR, p29, by Sally Patten) ‘Some investors might be dipping their toes back into the sharemarket after last week’s rout, but Morningstar isn’t one of them. The high-profile manager is sitting on a hefty pile of cash and has not begun to deploy any of it, despite the recent falls. “Valuations are … Continue reading
(12 February 2018, AFR, p19, by John Authers) ‘How much protection do people deserve when they venture into markets? After the longest period on record without a stock market sell-off — or “correction” — capital markets reminded last week that setting prices is painful. It involves the interaction of greed and fear, with markets rising steadily, … Continue reading
(12 February 2018, AFR, p19, by Chris Flood) ‘Investors ploughed more than $US100bn in new cash into exchange traded funds in January, a record monthly inflow that helped drive assets held in ETFs globally above the $5tn mark for the first time. The surge in January follows four consecutive years of record breaking inflows into … Continue reading
(12 February 2018, AFR, p13, by Sarah Turner) ‘AXA Framlington’s Mark Tinker says he wasn’t surprised by the role that shorting volatility played in the last week’s stock market rout as he took aim at the wave of structured financial products that have emerged since the global financial crisis. The $US2 billion VelocityShares Daily Inverse … Continue reading
(12 February 2018, The Age, Business, p24, By Tom Rees and Tim Wallace) ‘ “We knew something was coming,” recalls a city trader about a tetchy dealing room in London hours before the Dow Jones suffered its biggest one-day points fall in history. “There was an eerie feeling to trading, it felt very wobbly.” “There … Continue reading
(9 February 2018, AFR, p32, by Karen Maley) ‘It’s been a tough year for Millennials who, for the first time in their investing careers, have learnt just how vicious markets can be. The first market lesson came from the Millennials’ market darling – the cryptocurrencies. After soaring to a peak of nearly $US20,000 ($26,600) per coin … Continue reading
(9 February 2018, AFR, p29, by Nicole Bullock and Eric Platt) ‘It took less than a day to debunk the longstanding mantra that financial markets are in an era of low volatility. As the shockwaves ripple out from this week’s ructions, another truism of recent years — that investors should “buy the dip” — faces … Continue reading
(8 February 2018, AFR, p27, by Robin Wigglesworth) ‘When excitable beliefs in new paradigms in markets are shattered it can be spectacular. The conviction that stock markets had entered a new era of tranquility has become the latest example.’ <snipped…> ‘On Wall Street, being “short” means you are betting against something, and “short volatility” is … Continue reading
(7 February 2018, AFR, p26, by Debra Cleveland) ‘If you thought you’d find shelter from volatile markets in classic defensive stocks, rising interest rates may have undermined your “insurance policy”. High-yield defensives like the telcos, infrastructure plays and real estate investment trusts (REITS) have done well over many years, says Shane Oliver, head of investment … Continue reading
[COMMENT: Here is one good example of the sorts of things that can catch the uninitiated and unwary when playing in the financial markets.] (7 February 2018, AFR, p25, by Patrick Commins) ‘The rapid unwinding of complacent markets may have claimed its first victim after a Wall St exchange-traded fund which gains from falling volatility crashed … Continue reading
(6 February 2018, AFR, p1, by Vesna Poljak) ‘Australian shares have had their worst day in seven months after the global bond market’s sell-off hit the ASX, leading some investors to speculate that the bull run in global equities has been shattered. Monday’s 95 point fall, a drop of 1.55 per cent, to 6026 points … Continue reading
[COMMENT: An interesting insight into some of the things that might go wrong for investors.] (3 February 2018, AFR, p27, by Vesna Poljak) ‘Missteps bedevilled the timber project developer. “The long and short of it is that forestry assets take time to mature, which requires capital, which, in turn, requires trust. With trust gone, the … Continue reading
(24 January 2018, AFR, p24, by Rachel Evans) ‘Welcome to the big leagues, ETFs. With trillions of dollars now being held in thousands of different products, exchange-traded funds have gone from a sideshow of the financial world to the centre stage. No where is this more apparent than at this week’s annual schmooze-fest in Hollywood, Florida, called … Continue reading
[COMMENT: This article provides an interesting insight. Some market participants think like this (described below), while many do not. Some people would even say this line of thinking is speculation – investing on an opinion which might be little more than gut-feeling.] (24 January 2018, AFR, p23, by Elio D’Amato) ‘There is a common belief … Continue reading
(24 January 2018, AFR, p22, by Paul Taylor) ‘As the benchmark S&P/ASX 200 continues its upward march in 2018, it is worth a brief look back at 2017. Last year the local market delivered strong returns despite considerable headwinds. Global political instability, rising US interest rates, increasing levels of government intervention and subdued GDP growth … Continue reading
(23 January 2018, AFR, p13, by Vesna Poljak) ‘The hedge fund that brought down listed sandalwood grower Quintis has urged Australian policymakers to rethink tax incentives for managed investment scheme investors after the former TFS Corp became the latest failure in a long line of forestry-linked collapses. Quintis appointed administrators on Saturday, ending a months-long … Continue reading
