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12 Dec 2018 (AFR) – High-frequency trading loses its spark: ASIC

[COMMENT: Now this is interesting. In recent years there has been concern amongst investors and traders that HFT was taking over the markets and making it harder for retail investors to trade for a living. But if this report is true, then it’s not so bad.] (12 December 2018, AFR, p17, by Jonathan Shapiro) ‘The … Continue reading

12 Dec 2018 (AFR) – Treasury Wines’ painful $4 billion spillage

[COMMENT: Technical analysts (aka chart readers) could have spotted a potential loser here, some months before the share price tanked. They would have trimmed any losses and quite the stock.] (12 December 2018, AFR, p17, by Simon Evans) ‘Old-school investors who believe share sales by directors and top executives are a potential danger signal have … Continue reading

11 Oct 2018 (AFR) – October housing finance up 2.6pc, first investor rise since February

(11 October 2018, AFR, p6, By Michael Bleby) ‘Investor mortgage lending rose for the first time in eight months in October as loan promises for investment purchases picked up in a more active spring market. The 0.6 per cent monthly gain in investor loan commitments lifted the total to $9.9 billion from $9.8 billion in … Continue reading

10 Dec 2018 (AFR) – The 2018 contrarians who got it right: what they’re saying now

[COMMENT: It is always interesting to look back at the so-called predictions from months ago, and see how many commentators came close to an accurate prediction. Take a look here…] (10 December 2018, AFR, p23, by: Katherine Greifeld, Vildana Hajric, Ben Bartenstein and Aline Oyamada) ‘With just three weeks to go, 2018’s market contrarians are … Continue reading

10 Dec 2018 (AFR) – ‘Frank Squared’: Circularity of Quintis deal examined in receivers’ hearings

[COMMENT: This interesting news story brings some great insight into what can sometimes happen behind the scenes with managed funds.] (10 December 2018, AFR, p20, by Vesna Poljak) ‘The Abu Dhabi Investment Council was able to exit $10 million of plantations managed by the sandalwood grower Quintis by virtue of a three-way transaction financed by … Continue reading

10 Dec 2018 (AFR) – AMP class action beauty parade turns ugly

(10 December 2018, AFR, p19, by Misa Han) ‘On May 9, a day before AMP’s annual general meeting, boutique class-action specialist Quinn Emanuel filed the first class action against the wealth giant in the NSW Supreme Court.’ <snipped…> ‘It turns out Quinn Emanuel wasn’t the only law firm working towards a tight deadline. At 10.56 … Continue reading

3 Dec 2018 (AFR) – Kingscliff hedge fund Goldsky’s ‘plastic surgery spree’ forced ASIC action

[COMMENT: Have you ever wondered if your managed fund monies are being invested appropriately? It has been alleged that some funds aren’t. Read the details below.] (3 December 2018, AFR, p1, By Jonathan Shapiro) ‘Goldsky, the Kingscliff-based hedge fund that is being sued by US regulators, spent more than $200,000 on cosmetic procedures, beauty treatments, … Continue reading

28 Nov 2018 (TheAge,SMH,MONEY) – RCR Tomlinson’s collapse has lessons for retail investors

[COMMENT: This article from Marcus Padley includes some great comments and insights – well worth reading the full article.] (28 November 2018, The Age, MONEY supplement, p2, By Marcus Padley) ‘Last year, RCR Tomlinson was a billion-dollar company. Last week, it went into administration. RCR went bust with a market capitalisation of $231 million. Two … Continue reading

26 Nov 2018 (AFR) – Market minds: Looking through the P/E multiple to unlock value

[COMMENT: I cannot help but comment on this article. It includes a good discussion about the usefulness, or otherwise, of the PE multiple when looking for shares to buy. After reading this one I became even more convinced that the PE might generally be useful (eg. lower PE is better), but that it cannot be … Continue reading

23 Nov 2018 (AFR) – RCR Tomlinson to be split up and sold after ‘staggering’ collapse

(23 November 2018, AFR, p19, by Jenny Wiggins) ‘Engineering group RCR Tomlinson will be sold after being put into administration because it could not afford to complete its solar farm projects, despite the company raising $100 million from investors just three months ago. Administrators McGrathNicol will put RCR up for sale immediately, and it is expected that … Continue reading

22 Nov 2018 (AFR) – Risks rise for investors as developed economies falter

(22 November 2018, AFR, p22, by Mohamed El-Erian) ‘Life would be better for equity investors if the transition from quantitative easing and ultra-low interest rates was unfolding against a backdrop of solid economic growth. Instead, the global economy is losing momentum and the divergence between advanced economies is growing. As a result, financial market choppiness … Continue reading

10 Nov 2018 (AFR) – Super investors warned about turbo-charging ‘safe’ funds to boost performance

[COMMENT: This is one topic that has puzzled myself for a long time – How on earth can we compare all of the ‘balanced’ super funds, for example, when they don’t use the same definition for ‘balanced’? We’re actually comparing apples with oranges, so to speak. So performance comparisons are out the window. And then, … Continue reading

8 Nov 2018 (AFR) – Hedge funds lick their wounds after ‘hostile’ month

(8 November 2018, AFR, p31, by Sarah Turner) ‘Hedge funds are making no excuses for their poor performance in October, which was a bloodbath for most long-short strategies unable to overcome “hostile” conditions. The S&P/ASX 200 fell 6.1 per cent for its worst monthly performance since August 2015 as higher US 10-year bond yields prompted investors … Continue reading

31 Oct 2018 (AFR) – Roll up, roll up for the next blow-up – Avoiding Ponzis in the profit hunt

(31 OCtober 2018, AFR, p32, by Jonathan Shapiro) ‘There’s a joke among fund managers that the excuse they often hear from a CEO after he or she has blown a company up is “it was only the last acquisition that didn’t work”. But the way of the ‘roll-up’, if you’re a stock market cynic, is … Continue reading

29 Oct 2018 (TheAge) – ‘White knuckle’ volatility set to test investors

(29 October 2018, The Age, Business, p20, Timothy Moore) ‘The return of volatility has been a key market theme this year and appears likely to intensify, at least in the short term, from Wall Street to the ASX, which is set to open weaker on Monday. The Dow Jones Industrial Average swung wildly on Friday … Continue reading

24 Oct 2018 (TheAge) – The signs are gathering for a Wall Street crash

(24 October 2018, The Age, MONEY supplement, p2, Marcus Padley) ‘It is different walking into the office. As it was in February. “How many points was Wall Street down,” a colleague says as he walks in this week. That morning the Dow Jones was down 127. The assumption that markets will fall instead of rise … Continue reading

23 Oct 2018 (AFR) – Howard Marks says markets are in eighth innings

(23 October 2018, AFR, p17, by Jonathan Shapiro) ‘Legendary investor Howard Marks says he can’t predict how the stockmarket will respond to rising interest rates as central banks end a multi-year period of cheap money. But the uncertainty around the impending end of the unprecedented monetary “policy experiment” should force investors to reduce risk taking. … Continue reading

20 Oct 2018 (AFR) – Drums are beating for value investing after growth’s off-key turn

[COMMENT: This article discusses the pros and cons of value investing versus growth, and the notion of the same. I still don’t understand it. Can someone clearly define value investing for us? And as a technical analyst who follows the charts, I still think that just about everything we need to know is locked up … Continue reading

17 Oct 2018 (AFR) – Top investors cautious about sharemarket outlook

[COMMENT: The headline says “Top investors cautious…”. I wonder if this sort of observation is relevant to the average retail investor? Or to the short term share market trader?] (17 October 2018, AFR, p23, by Stewart Oldfield) ‘Beyond the current bout of market volatility, some of the country’s most influential investors are growing more concerned … Continue reading

15 Oct 2018 (AFR) – JPMorgan’s Kolanovic says systematic selling in markets 70pc over

[COMMENT: Now I thought that we had heard a lot of bad advice coming out of the Hayne royal commission. I cannot beleive that “profressionals” are now telling us to “buy the dip” in the markets. Can they guarantee the market (and stocks) will not be falling further? Will they refund our losses if we … Continue reading

9 Oct 2018 (AFR) – Tech stock rout could bring about value buying opportunity

[COMMENT – Now I have a real problem with this article. It talks about buying opportunities in the market, even though the share prices of some stocks might still be falling. This is crazy “advice”.] (9 October 2018, AFR, p28, by William McInnes) ‘Investors keen on snapping up a bargain could use recent falls in technology … Continue reading

6 Oct 2018 (AFR) – The tide may be set to turn for equity markets

(6 October 2018, AFR, p27, by Sarah Turner) ‘A spike in US 10-year bond yields to seven-year highs this week is sending a clear signal that the days of equity market strength may be numbered. Treasury yields moved over 3.2 per cent this week for the first time since 2011 after a flurry of upbeat … Continue reading

4 Oct 2018 (AFR) – Six signals tougher times are on their way

(4 October 2018, AFR, p24, by Simon Evans) ‘Australia has managed to avert a recession for 27 years, and the extent of a house price surge in Sydney and Melbourne after the country came out of the Global Financial Crisis relatively unscathed, had many experts baffled. But there are some worrying signs starting to emerge … Continue reading

2 Oct 2018 (AFR) – Eley Griffiths points to market euphoria over correction

(2 October 2018, AFR, p27, by Joyce Moullakis) ‘Small and mid cap fund manager Ben Griffiths has an unequivocal view that sharemarkets are at the start of a euphoric stage, offering plenty of upside rather than teetering toward a correction.  He draws on the theory coined by the late Sir John Templeton, a legendary stockpicker, that bull markets have four … Continue reading

20 Sept 2018 (AFR) – Wall Street’s enduring bonuses jar as GFC recovery eludes many

(20 September 2018, AFR, p33, Lex Column, Financial Times) ‘Americans who resent Wall Street are not just angry towards the people who helped crash the economy a decade ago. They are also annoyed by the ability of finance professionals to benefit from a recovery that eludes others. The Office of the New York State Comptroller … Continue reading

19 Sept 2018 (AFR) – The ASX sectors that are set for the biggest growth, in charts

(19 September 2018, AFR, p24, by Elio D’Amato) ‘The dust has settled after the reporting season, with most pundits saying it was a winner. Seasoned investors will know, however, that being flippant is not the way to establish a view as to whether the recent run in the market is sustainable.’ <snipped…> ‘Most investors focused … Continue reading

18 Sept 2018 (AFR) – Westpac tightens terms for property borrowers ahead of variable rate rise

(18 September 2018, AFR, p17, by Duncan Hughes) ‘Westpac will announce a new round of residential lending policy changes for existing borrowers on Monday as it prepares to become the first of the majors to lift standard variable rates. It is the fifth round of tightening in the past six months aimed at ensuring borrowers … Continue reading

17 Sept 2018 (AFR) – Regulators probe Nasdaq’s derivatives market safeguards after damage from losses

[COMMENT: An interesting insight into the world of financial market derivatives, and the Nasdaq.] (17 September, 2018, AFR, p19, by Philip Stafford) ‘Swedish markets regulators are to investigate the Nasdaq as the exchange and its customers began rebuilding their defences against defaults in the derivatives markets, after they were badly damaged by soured bets from … Continue reading

14 Sept 2018 (AFR) – Labor election win to hurt high dividend stocks

(14 September 2018, AFR, p5, by John Kehoe) ‘The stock market’s most popular dividend-paying stocks including the banks, miners and Telstra could have billions of dollars wiped off their valuations if Labor wins the next federal election, as polls suggest. A new report by Citigroup financial analysts finds that Labor’s proposal to curtail the generosity … Continue reading

14 Sept 2018 (AFR) – Active fund managers failing investors, survey shows

(14 September 2018, AFR, p31, by Sarah Turner) ‘Most Australian active fund managers in a majority of categories failed to beat their benchmarks in 2017-18, lending further ammunition to the case for passive investing in the enduring active versus passive debate. Over the past year, general Australian equity funds recorded an average return of 12.3 … Continue reading