Market commentary

Malcolm Turnbull is rumoured to be very concerned about Australia losing its coveted AAA credit rating.  Politically, it would be a terrible look were it to occur on his watch.  Our shaky credit rating reflects the failure of successive governments to deal with our most pressing economic issue – the Balance of Payments Current Account Deficit.  And I don’t see things changing soon. continue…

by Roger Montgomery Posted in Market commentary.

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The Prisoner’s Dilemma provides a framework for understanding how to strike a balance between competition and cooperation. It’s possible for rival firms in a competitive market to solve the Prisoner’s Dilemma, without collusion, and for their mutual benefit. Let’s look at how it can be done. continue…

by Scott Shuttleworth Posted in Market commentary.

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In our globalised, high-tech world, market disruptors – like Aldi, Amazon and artificial intelligence – are coming faster than ever before. Disruptors can have a massive impact – positive and negative – on holdings in your portfolio. Which is why, as investors, it’s essential to stay tuned to what could be next. continue…

by Lisa Fedorenko Posted in Market commentary.

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In terms of household debt to disposable income (187 per cent) and household debt to GDP (125 per cent), Australian householders are vying for gold in the debt Olympics.  Our love affair with property has been greatly assisted by record low interest rates and this reduction is illustrated below with the “Interest paid to disposable income ratio” declining from 13 per cent to just over 8 per cent over the past decade. continue…

by David Buckland Posted in Market commentary.

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by Roger Montgomery Posted in Companies, Editor's Pick, Market commentary.

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The 36-year bond bull market is stretched and set for a serious nose dive, says Harvard University researcher, Paul Schmelzing.  Schmelzing says global inflation could trigger large losses on bond holdings, subpar growth in developed markets, and balance sheet risks for banks.  continue…

by David Buckland Posted in Economics, Market commentary.

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Back in 2008, Satoshi Nakamoto conceptualized the first blockchain. The following year, he used it as a core component of the digital currency, bitcoin. Since then, blockchain has become something of a buzz word. So what is it, and why does it matter?
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by Lisa Fedorenko Posted in Market commentary, Technology & Telecommunications.

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The 2016 financial year saw some significant changes in investment in Australia. There were major movements in relation to global shares, fixed interest, global property and infrastructure, and alternatives. We can learn a lot by looking at where the money flowed. continue…

by Scott Phillips Posted in Market commentary.

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With thanks to Bob Dylan, a reading of the minutes to the December RBA’s board meeting reveals there’s a change in the wind.  Typically, what we were taught in economics about Australia’s Monetary Policy has been precisely how the RBA applied its levers. Inflation and economic growth determined the changes in the settings. continue…

by Roger Montgomery Posted in Market commentary.

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Humans are notoriously bad at picking turning points.  We tend to believe the future will look like the recent past.  That’s why so many investors make decisions about the future by looking in the rear view mirror.  However, I believe the best returns over the next few years will come from buying high quality, high growth companies – many of which are now at beaten-down prices.

by Roger Montgomery Posted in Editor's Pick, Market commentary.

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