Market Watch
Market Watch
Big banks: fundamentals and valuations
July 8, 2015
With rate cuts buoying the banking environment, it’s important to keep an eye on where asset quality can move from here. In this article, we assess the value of Australia’s four largest banks, namely Commonwealth Bank, Westpac Banking Corporation, Australia and New Zealand Banking Group (ANZ) and the National Australia Bank (NAB). Market fundamentals: Earnings...Read More
2 reasons why dividend yield matters
July 8, 2015
While there are a handful of actively managed equity income funds in the market, many are not optimally designed to meet the needs of a retiree. This article explores the role of equity income (through dividends) for those in or nearing retirement. Where to invest for income? A question many investors face is where to...Read More
Communication infrastructure has rapidly advanced over recent decades. While many countries have upgraded their infrastructure to keep up with these changes, the rapid pace in which technology is advancing means countries will continually need to invest to remain globally competitive. For example, multinational consulting firm McKinsey, forecasts a telecom infrastructure investment of US$9.5 trillion between...Read More
China stocks in trading halt – what to consider?
July 8, 2015
Turbulent financial market dynamics in recent weeks have demonstrated the importance of turning down the noise, diversifying widely and adopting an active approach to asset allocation. In this article, we address the situation in Europe and China and what this means for investment markets. Over the past month China’s sharemarket has suffered sharp price falls...Read More
Fed tightening: 3 things for investors to remember
June 12, 2015
This year, what happens in the US is critically important to what happens in the global economy because of the intense focus on the Federal Reserve (Fed). We’ve had near-zero interest rates since the onset of the global financial crisis, and the Fed has indicated that at some point, probably this year, it will start...Read More
4 reasons to consider investing in corporate bonds
June 12, 2015
A question many investors face is where to invest for sources of income in a low yield environment. With the Reserve Bank of Australia (RBA) cutting the official cash rate by 0.25% to 2.0% in May, many investors are looking for income opportunities outside of term deposits. In this article, we discuss corporate bond investing...Read More
What’s driving the demand for Australian housing? While it’s generally agreed Australian property prices are high in a global context, the reasons for it are subject to many factors. In our view, the shift to low interest rates since the early 1990s, deregulation of the banking system and the rise in two income households has...Read More