Insights

After a strong start to 2022, markets globally have become volatile with inflation rising above expectations, leading to the potential for earlier interest rate rises. Unprofitable businesses feel the greatest impact of rising interest rates on their valuations, as their cost of funding rises. This is not to say that quality profitable (defensive) businesses will […]

The ASX200 index is up about 12% for 2021, or 16% when including dividends and capital returns. Very low interest rates, government spending and improved household savings has resulted in a boom for the economy and asset prices (shares and property in particular). A world-beating vaccination rate and consumer confidence has seen a transition to

The past month has seen the market trade with increased volatility, recently due to a new COVID strain, ending with little net movement in the index. Global growth remains well above trend, although central back monetary policy (interest rates) remains at a level that would indicate a recession or worse. It appears the Australian Federal

The September slump had a number of commentators concerned about falling markets, however, they have recently been moving up, largely due to an excellent quarterly earnings season in the USA; a few highlights below: FORD ($0.51 v. $0.27cps expected) McDonalds ($2.76 v. $2.46 expected) Alphabet ($27.99 v. $23.48 expected) AMD ($0.73 versus $0.67 expected) Microsoft

September was an eventful month providing much to consider for those speculating on short-term market movements. Domestically, the reopening trade continues to gain traction as we have a semblance of a roadmap out of COVID-19 and vaccination rates improve. Government spending continues at pace and interest rates remain low regardless of a robust economy and

The past month has seen many ASX listed companies report FY20/21 results. On average, about 40% have beaten forecasts, 40% were in-line and only 20% reported earnings that were below expectations. Government spending and accommodative interest rates continue regardless of a strong economy, and companies reporting positive results. Corporate balance sheets are strong, private sector

We come to the end of another unusual financial year. Over the years we have encouraged investors to avoid predicting markets, and understand the shares they own are real, operating businesses. Commensurately, the long-term success of the investment will be predicated on the success of the underlying business. In the short-term the success of the

The past month has been disruptive for many readers, who have been subject to lockdowns. We hope you have been managing well during this period.   An eagerly anticipated reporting season commences in August, with most ASX listed companies reporting FY21 numbers. We anticipate robust earnings results reflecting the ‘V-shaped’ recovery of the economy given (1)

During May, the market was broadly flat. The outlook for the domestic economy appears robust: Household and corporate balance sheets are strong. Elevated retail spending. 20-year high job vacancy rate should result in lower unemployment. Australian government debt remains manageable. Interest rates are at record lows. Business forward orders recently reached multi-decade highs; and Strong

Much has been made of the market hitting all-time highs recently; accompanied by the normal predictions of pending catastrophe. Many great investors have discussed the folly in making market predictions.  Amongst the many comments on this exercise of looking into crystal balls is one from John Templeton: “The influence on stock prices are so numerous