The Australian materials sector (largely comprising our major miners) has performed relatively well so far this year due to firmer commodity prices and a relatively benign United States interest rate outlook. Although valuations in the sector appear high, they might be justified if commodity prices hold up near current levels and miners are able to
The ongoing growth of the Australian ETF industry means that investors who have an interest in obtaining exposure to commodities are now able to choose between Commodity ETFs or Commodity Company ETFs. In this post I describe some of the key differences between these two types of products and why an investor may decide to
El Niño, Neutral and La Nina… The three newest BetaShares ETFs? Not quite. These are the three phases of the El Niño–Southern Oscillation (ENSO). Back in October last year, my colleague and Chief Economist at BetaShares – David Bassanese, discussed the impacts the phase of El Niño can have on the Australian economy and on
Over the past six months I’ve spoken to a lot of advisers, as well as self-directed investors, who have considered investing in Oil and Gold. When I ask what is drawing investors to these exposures I get different answers depending on the commodity. For oil, investors are telling me they are interested due to the
With the price of oil below $40, some investors might think now is a good time to invest into an oil exposure and then sit and wait for the price of oil to eventually rebound. However, investing in oil isn’t that simple. In this post for the BetaShares Academy, I describe the ‘ins and outs’
There’s no doubt oil prices have dropped a long way in recent months. Of course, that begs the question of whether oil prices are near their bottom and worth buying from a medium or long-term investment perspective. Although picking exact market bottoms is fraught with difficulty, from an historical perspective it would be unusual if
Please click on the image to watch the video interview.
In this informative 10 minute interview, David discusses the collapse in commodity prices, the Australian economic outlook, the Fed, and the biggest risk in global markets next year. Click on the image to watch the full interview now.
In light of the recent collapse in iron ore prices, debate has swirled on the longer-term outlook for Chinese steel demand. According to estimates by the Reserve Bank of Australia, it takes around 1.7 tonnes of iron ore and half a tonne of coking coal to produce one tonne of Chinese steel. Some argue Chinese
The sharp decline in oil prices in recent months has been a major surprise for financial markets, with some suggesting it reflects speculation run wild. This note suggests the contrary – and that the decline in prices clearly reflects the development of a short-term fundamental imbalance between supply and demand – and consequent run up