Global Market Outlook: Earnings power stocks

Supported by ongoing growth in corporate earnings, global equities powered ahead in September, shaking off concerns surrounding North Korea and higher bond yields.  With growth still solid in the US and improving growth in Japan, Europe and Emerging Markets, the global earnings outlook remains positive. DOWNLOAD THE FULL GLOBAL MARKET OUTLOOK REPORT NOW  

Read more

Bond Basics Part II: DIY or bond funds?

Should you hold individual bonds and “do it yourself” or a diversified bond fund/ETF? One commonly held belief in investing is that holding individual bonds entails less risk than bond funds, due to the return of principal at maturity. Is this correct? If so, does it matter? Ultimately, it depends on the role bonds play

Read more

tape measure

Sometimes smaller is better: which way to bet in this market environment?

Modern portfolio theory suggests there are two kinds of risks in stock returns: Systematic or market risk, which investors attempt to ‘diversify’ away by adding a variety of assets to their portfolios; and Unsystematic or stock specific risk, which represents a stocks return that is not correlated with general market movements In recent times, global

Read more

wooden house with money

Australian House Price Update: Where’s the value?

Although the official measure of house price inflation suggested Sydney property gains remained solid in the June quarter, more timely indicators point to a softening in this long red-hot market. That’s consistent with estimates suggesting mortgage affordability constraints in Sydney are now around previous peak levels.  Meanwhile, better value appears evident in other capital cities,

Read more

three hot air balloons

Bonds behaving badly? Why floating rate bonds have outperformed fixed rate in recent times

Fixed-income investors seeking safety in bonds be warned: it took only a relatively modest rise in bond yields over the past year for Australia’s headline bond index to post negative returns.  This result highlights the risks that traditional fixed-rate bond investments currently pose to investors in an environment of low but rising bond yields.  By

Read more

trading strategy

6 trading strategies and how to use ETPs to implement them

Exchange traded funds (ETPs) are an excellent option for those new to investing, due to a number of key advantages over other instruments: • Low cost • Liquidity • Potential for diversification • Low minimum investment amount • Wide range of investment choices available These advantages also make ETPs attractive vehicles for various trading and

Read more

Shiller PE Ratio

Should we worry about the Shiller PE Ratio?

The rise in global equity prices in recent years has led to continued concerns over valuation levels.  One indicator that appears to cause endless nervousness is the so-called “Shiller” PE ratio, which considers US stock prices relative to the rolling 10-year average level of earnings.  As this note demonstrates, however, the Shiller PE ratio has

Read more