Australia’s financial regulator, APRA, is looking to increase the number of mortgage categories that are to be penalised with an increase in regulatory capital by the banks. The higher capital requirements on these categories is likely to see riskier loans get more expensive. Continue…

by Stuart Jackson Posted in Financial Services.

• save this article
• POSTED IN Financial Services.

The level of household financial stress in Australia is a key issue. This is because a significant pull-back in the financial position of households would have flow-on effects across the economy. So, the recent data released by the nation’s largest lenders provides an important reading of future trends. Continue…

by Stuart Jackson Posted in Editor's Pick, Financial Services.

• 15 Comments
• save this article
• 15
• POSTED IN Editor's Pick, Financial Services.

In this week’s video insight Stuart discusses discounted cash flow valuations and the most common mistake made in estimating the value of a company using this valuation methodology.

by Stuart Jackson Posted in Editor's Pick, Video Insights.

• 2 Comments
• save this article
• 2
• POSTED IN Editor's Pick, Video Insights.

Latest figures show Australia’s household debt and gearing keep on rising, with the ratio of household debt to disposable income now at record levels. The recent rise has been largely due to the loan book growth of smaller institutions and non-traditional lenders, often to higher-risk borrowers. This is a worrying development. Continue…

by Stuart Jackson Posted in Financial Services.

• 4 Comments
• save this article
• 4
• POSTED IN Financial Services.

Late last year, I discussed some of the main arguments underpinning a bearish outlook for the Australian consumer and, in turn, major bank loan book growth. But what about the counter argument? In particular, could the tightening labour market create stronger wage growth and thereby boost consumption? Continue…

by Stuart Jackson Posted in Market commentary.

• 3 Comments
• save this article
• 3
• POSTED IN Market commentary.

For some time, we have outlined our concerns regarding the growing constraints on the Australian household sector due to various elements. In the first part of a two-part blog I will identify one argument. Will the slowing or a reversal of household wealth creation have negative implications for many companies?

Continue…

by Stuart Jackson Posted in Market commentary.

• save this article
• POSTED IN Market commentary.

Lately, we are hearing many investors lament that it’s getting hard to find value in our market. Well, there are still pockets of value. And TradeMe (ASX:TME), New Zealand’s largest online auction and classifieds website, could be one of them. Continue…

by Stuart Jackson Posted in Companies, Stocks We Like.

• save this article
• POSTED IN Companies, Stocks We Like.

The Australian government has just announced a raft of changes to private health insurance. The reforms should make health cover more affordable, and more attractive for consumers. And this in turn should be beneficial for hospital operators, at least in the short term. Continue…

by Stuart Jackson Posted in Health Care.

• save this article
• POSTED IN Health Care.

Three of Australia’s biggest banks – Westpac (ASX: WBC), ANZ (ASX: ANZ) and NAB (ASX: NAB)– are about to report, and we think there’s plenty of reasons to be optimistic. A turnaround in the trajectory of net interest margins, and good news on bad and doubtful debts, should leave investors happy in the run-up to Christmas. Continue…

by Stuart Jackson Posted in Financial Services.

• save this article
• POSTED IN Financial Services.

The gyrations of the Aussie dollar are a constant focus of media attention. And well they might be. Because, apart from reflecting our national economic health, the strength of the Aussie dollar relative to other currencies has a big impact on exporters, and on businesses that generate earnings overseas. Continue…

by Stuart Jackson Posted in Foreign Currency, Market commentary.

• save this article
• POSTED IN Foreign Currency, Market commentary.