(17 January 2020, AFR, p29, Tom Richardson, Markets reporter and commentator) ‘The post-GFC bull run for risk assets accelerated this week with the local sharemarket topping 7000 points to deliver the best start to the year since 2000. The latest move higher is on investor relief that a tariff-reducing US-China phase one trade deal will … Continue reading
(17 January 2020, AFR, p27, William McInnes, Reporter) ‘The benchmark S&P/ASX 200 Index has finally cleared 7000 points, more than two years after it cleared the 6000 point mark in 2017 for the first time since the global financial crisis. While the majority of the market has enjoyed strong advances across those two years, two stocks … Continue reading
(16 January 2020, AFR, p27, Sarah Turner, Reporter) ‘The stakes appear unusually high for companies this earnings season, with short sellers poised to claim the rewards as companies trade on some of the richest valuations in history, inviting ruthless punishment for missed expectations. ASX-listed companies are gearing up to report first-half earnings in February, meaning … Continue reading
[COMMENTS: Because of my own distrust of managed funds in general, including superannuation funds, I always post reports like this one below with some comments like the following. It will be interesting to see how these funds perform over the next couple of years because it is common for a superior fund one year to … Continue reading
[COMMENT: In case any readers are a little puzzled, the All Ordinaries (XAO) index broke through the 7000 level last week, while this index, the XJO, is at a lower level and still heading there.] (15 January 2020, AFR, p26, Luke Housego, Reporter) ‘The Australian sharemarket surpassed last week’s record to close at fresh highs … Continue reading
[COMMENT: As Karen explains here, her piece in the AFR a week ago elicited a lot of response from financial planners, and this follow up article provides a great insight into the financial planning industry in Australia. It’s well worth reading the entire article at AFR.com.] (15 January 2020, AFR, p29, Karen Maley, Columnist) ‘Financial … Continue reading
(15 January 2020, AFR, p1, John Kehoe, Senior Writer) ‘The chairman of the $166 billion sovereign wealth fund, Peter Costello, has warned that record low interest rates are pushing investors into risky financial products akin to “collateralised debt obligations”, which blew up during the 2008 global financial crisis. ‘ Read more at AFR.com (might need … Continue reading
[COMMENT: The old discussion about value investing versus growth investing continues. This article provides some interesting food for thought.] (15 January 2020, AFR, p26, Michael Glennon, Contributor) ‘It’s been a hard few years for investors with a value bias. While we don’t put ourselves into either the growth or value camps, we have definitely taken … Continue reading
(15 January 2020, AFR, p27, Robert Guy, Senior Writer) ‘Australian industrial stocks are trading at their richest valuations since 1960 on reflation hopes but some strategists warn investors could be set for disappointment. You know valuations are frothy when you have to go back to when Sir Robert Menzies was prime minister to find market … Continue reading
[COMMENT: Now this is a great read. What is the future of financial advice in Australia? The rich can afford it, while many cannot afford the fees of an adviser who could do a proper job. So what do the rest of us do for financial advice? Read the full story.] (10 January 2020, AFR, … Continue reading
[COMMENT: Here is an interesting expose into the mysterious world of organised insider trading.] (10 January 2020, AFR, p28, By Bob Van Voris, Bloomberg) ‘He tapped a safe full of cash to pay off corrupt stock tipsters and used phony invoices for artwork sales to mask some payments. He stole information from his banker girlfriend, … Continue reading
(10 January 2020, AFR, p27, Jonathan Shapiro, Senior Reporter) ‘The decade is over, and counter to all the headlines, it’s been one of the best ever for the stockmarket. But it sure didn’t feel so great. For ten years, equities scaled a wall of worry. The hangover from the sub-prime catastrophe, a European debt crisis, … Continue reading
[COMMENT: Case Study – Here is one example of some of the things that might go wrong when investing. Make sure to proceed with caution.] (10 January 2020, AFR, p14, Liam Walsh, Reporter) ‘One of Australia’s biggest stockbroking outfits, Morgans, has secretly begun examining reparations for customers burnt many years ago by rogue trader actions. … Continue reading
(6 January 2020, AFR, p13, Jonathan Shapiro and Carrie LaFrenz) ‘The Australian Securities and Investments Commission is investigating listed wealth manager Evans Dixon over the advice provided to some of its clients after the corporate watchdog received several complaints over 2019. ASIC is investigating the Dixon Advisory arm, which merged with boutique firm Evans & … Continue reading
[COMMENT: This is an interesting move forward regarding the way in which so-called “sophisticated investors” are treated by their financial adviser or stock broker. For years now, different rules have applied to them on the assumption that because they have a bucket load of money to invest, that they know how to invest, and are … Continue reading
(4 January 2020, AFR, p27, William McInnes, Reporter) ‘Australian shares have soared in the first two days of trading for the new year, buoyed by a new round of stimulus from the Chinese government and a set date for the signing of a ‘phase one’ US-China trade deal. The strong start to the year’s trading … Continue reading
(3 January 2020, AFR, p15, Jonathan Shapiro, Senior Reporter) ‘Activist short sellers made good profits from targeting Australian companies in 2019, even as a the broader market made strong gains while corporate executives sought to counter negative claims. In 2019, short sellers launched five public campaigns against Australian companies, resulting in an average decline of … Continue reading
(3 January 2020, AFR, p15, Chanticleer) ‘The short sellers of the ASX might be coming off a desperately difficult year, but they’re certainly not ready to back down. That’s the message from fascinating data analysed by veteran Bell Potter broker Richard Coppleson, which shows that of the top 25 short positions on the ASX on … Continue reading
[COMMENT: Here is another good example for the investors and traders who try to read the stories in the price charts. The share price of Dropbox had been down trending for months, and astute traders and investors would have sold out months ago. This news story (below) might cause more ructions for the share price.] … Continue reading
(28 December 2019, CNBC online, ) ‘Stocks notched fresh records on Friday as year-end optimism continued to drive the rally. The Dow Jones Industrial Average rose 23.87 points to a record close of 28,645.26. The S&P 500 finished the day just 0.11 point higher at 3,240.02, also a new closing high. However, the Nasdaq Composite … Continue reading
(27 December 2019, CNBC online, ) ‘European stocks hit record highs on Friday, following the rally in stocks stateside. The pan-European Stoxx 600 closed 0.2% higher, hitting fresh record highs on Friday, up 0.2%. The FTSE 100 closed up 0.2%, meanwhile the German DAX closed up 0.2% and the French CAC was up 0.3%. In … Continue reading
(27 December 2019, AFR, online, Sarah Turner, Reporter) ‘The mining sector led the Australian market to modest gains at the end of a holiday-shortened week, with investors hopeful for a pick up in global growth as trade tensions settle down. The S&P/ASX 200 index closed 27 points, or 0.4 per cent, higher at 6821.70. The … Continue reading
(26 December 2019, MarketWatch.com online, by Mark DeCambre) ‘One of the U.S. stock markets best-performing indexes reached a new psychologically significant mark on Thursday, as the major indexes head to year end with the best gains in years. The technology-heavy Nasdaq Composite Index COMP, -0.17%, closed at 9,000 for the first time ever Thursday, finishing … Continue reading
(26 December 2019, The Age, Business, p26, By David Scutt) ‘Australian shares drifted higher in quiet, pre-Christmas trade on Tuesday, snapping a three-day losing streak in the process. The benchmark S&P/ASX 200 finished up 9.1 points, or 0.1 per cent, at 6794.2, helped by a late flurry of buying towards the close.’ Read more at … Continue reading
(16 December 2019, AFR, p8, Joanna Mather, Superannuation writer) ‘Three alleged scammers have fled overseas after the Australian Securities and Investments Commission accused them of fleecing more than 50 superannuation clients of as much as $8 million. Victims were encouraged to roll their super into newly created self-managed funds and then invest, by way of … Continue reading
(14 December 2019, AFR, p33, William McInnes, Reporter) ‘The Australian sharemarket climbed higher this week, rallying on Friday following the UK election and reports a phase one US-China trade deal was close to being signed. The S&P/ASX 200 Index closed 27.4 points, or 0.4 per cent, higher for the week at 6739.7. Despite a mixed … Continue reading
(7 December 2019, AFR, p28, Sarah Turner, Reporter) ‘Investors are fixated on low interest rates but some fund managers are worried that weak profits could turn out to be the market’s Achilles heel – earnings have been missing in action as the benchmark hovers near record highs. Blue chips such as Woolworths, Wesfarmers and Commonwealth … Continue reading
[COMMENT: Caveat emptor. Readers should read the entire article in full before passing judgement.] (7 December 2019, AFR, p23, Jonathan Shapiro and Liam Walsh) ‘Interest rates are at rock bottom. Investment risks are sky high. Trust in our banks and our financial advisers is broken. Across the country, retirees don’t know what to do with … Continue reading
(6 December 2019, AFR, p29, Robert GuySenior Writer) ‘Aberdeen Standard Investments chief executive Keith Skeoch says the bull run in global stocks can continue for “a bit longer” as growth is bolstered by central bank stimulus and prolonged low interest rates. From his perch atop a fund manager with $953 billion of assets under management, … Continue reading
(5 December 2019, AFR, p26, William McInnes, Reporter) ‘Australian shares were hit for a second session in a row on Wednesday, as investors were once again spooked by comments from the Trump administration on trade. The S&P/ASX 200 Index dropped 105.8 points, or 1.6 per cent, to 6606.5. A combined $76.8 billion was wiped off … Continue reading
