Do Australia’s rocketing tech stocks – particularly the so-called WAAAX stocks Wisetech, Afterpay, Altium, Appen and Xero – deserve their lofty premiums? The market certainly thinks so. But I’m not so sure. Continue…

by Roger Montgomery Posted in Companies.

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One of the things that characterises sophisticated investors is the way they use investment strategies that are designed to produce returns uncorrelated with equity market returns. Continue…

by Tim Kelley Posted in Whitepapers.

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The market seems to react to a new development in the US-China trade war with every day that passes. Trump and Xi have swung forward and backward in their attempt to agree on a deal, retaliating back and forth with tariffs in the process. The latest has been China’s announcement that they will increase tariffs on US$60 billion worth of goods from June 1. This came in response to Trump’s decision to increase 10 per cent tariffs on $200 billion worth of Chinese imports to 25 per cent which itself was a kneejerk reaction to Xi backtracking on supposedly agreed upon trade deal terms. 

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by Lachlan Mackay Posted in Global markets.

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In the world of active equity management, investment managers – ourselves included – seek to “outperform” the broader equity market index. This outperformance is typically referred to as “alpha” in the industry jargon. Of course, alpha can be both positive – when a manager outperforms; and negative – when a manager underperforms. Continue…

by Andrew Macken Posted in Editor's Pick, Investing Education.

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Australia’s four major banks have now reported their interim results. Common to all of them were three key themes, which are presenting both challenges and opportunities. Continue…

by Stuart Jackson Posted in Companies, Financial Services.

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The Reserve Bank of Australia recently opted to leave interest rates on hold. But with key parts of the economy in decline, it may be just a matter of time before it has to cut again.  The question is: how effective will a rate cut be? Continue…

by Roger Montgomery Posted in Market commentary.

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Much has been written about Uber recently, with the company having recently made its stock market debut. The business is polarising, with bulls and bears both making interesting arguments for and against the company as an investment. Continue…

by George Hadjia Posted in Companies.

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Last week the New York Times published an opinion essay penned by Facebook co-founder Chris Hughes, who calls for the breakup of the social media giant. Hughes, who left Facebook over a decade ago, levels a range of criticisms at the company and Mark Zuckerberg – chief amongst them the overwhelming power that Zuckerberg wields, but also his cavalier attitude towards privacy in the quest for “domination” and Facebook’s stifling of innovation and competition. Continue…

by Daniel Wu Posted in Companies, Stocks We Like.

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