The Magnificent Seven (Alphabet (NASDAQ:GOOG), Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Meta (NASDAQ:META), Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA), and Tesla (NASDAQ:TSLA), which rose by an average 111 per cent over calendar 2023, continued their strong upward trajectory, increasing a further 37 per cent, on average, over the six months to June 2024. This helped drag up the Nasdaq, which jumped 18.1 per cent and 28.5 per cent for the 6 and 12 months to June 2024, respectively. The S&P 500 also did very well, up 22.7 per cent for the year and up 14.5 per cent for the six months to June 2024.   Continue…

by David Buckland Posted in Economics, Editor's Pick, Foreign Currency.

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In last week’s interview with Jess McGuire on ABC’s NSW Drive, I discussed the current developments affecting our economic outlook. We delved into the recent rise in the inflation rate from 3.6 per cent to 4 per cent, prompting central banks to reconsider the timing of interest rate cuts, now likely delayed until late this year or early next. Additionally, I highlighted how iron ore exports to China are bolstering both our economies, reflecting on the broader implications for Australian trade partnerships. We also examined the downturn in discretionary spending, which is impacting retail and media sectors, with a notable decrease in share prices. 

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by David Buckland Posted in Radio.

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The 13-interest rate increases by the Reserve Bank of Australia (RBA) in the 18 months to November 2023, combined with the bounce in inflationary expectations is starting to bite. Any company associated with discretionary expenditure missing its guidance from the slowing economic environment and cost-of-living pressures is being brutally dealt with by the share market.   Continue…

by David Buckland Posted in Economics.

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In my recent interview with Ausbiz, I discussed the significant impact of rising inflation on renters and mortgage owners, leading to reduced discretionary spending. I provided insights into the macro landscape, noting inflation has risen to 4% and the employee living cost index is at 6.5%. Many retail businesses, such as Cettire (ASX: CTT) and Baby Bunting (ASX: BBN), are experiencing profit declines and multi-year lows in shares. The advertising sector also seems to be struggling as many businesses, including Seven West (ASX: SWM) and Nine Network (ASX:NEC), are also hitting multi-year lows.
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by David Buckland Posted in TV Appearances.

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In this week’s video insight, I discuss the Baby Boomers looming retirement, and the importance of ensuring financial stability. With rising property costs and the need to replace lost income, finding reliable investments is essential. I highlight private credit as an option, offering the potential for returns with lower volatility. By diversifying investments, retirees can enhance their income, providing financial security throughout their retirement years. Additionally, I address how rising property prices impact young people, making it harder for them to afford homes.   Continue…

by David Buckland Posted in Aura Group, Video Insights.

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I had the pleasure of joining Chris Batchelor to present a webinar hosted by Stockopedia as part of their Investing Mastermind series. We delved into unlocking the secrets of stock selection and identifying high-quality stocks. Continue…

by Roger Montgomery Posted in Editor's Pick, Stocks We Like, Talks.

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Since the beginning of the year, the Polen Capital Global Growth Fund has traded, or adjusted positions in, a number of portfolio holdings and as some of the names are those you are likely familiar with, Polen Capital thought it would be more than a little interesting to shed some light on the reason for the changes.  Continue…

by Roger Montgomery Posted in Companies, Polen Capital.

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In this week’s interview with Paul Turton on ABC Newcastle radio, we discussed several key financial trends and their global impacts. We covered the significant growth of the S&P 500 over the last four years, driven largely by technology stocks and the artificial intelligence revolution. We also delved into the current economic climate in Australia, examining the rising inflation and consumer price index (CPI), and how these factors are influencing discretionary spending and mortgage interest rates. Additionally, we explored the dynamics of the Chinese economy, focusing on the implications of Australia’s coal and iron ore exports to China.  Continue…

by David Buckland Posted in Economics, Editor's Pick, Radio.

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