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Global Market Review: April 2015

Please find attached the latest BetaShares Global Market Review. The main theme last month was a bounce back in commodities due (perversely) to softer US and Chinese economic data, which softened the $US and raised hopes for more monetary stimulus.  We do not expect the soft patch of US economic data to last.  We still

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Managing risk: the toxic combination of market downturns and withdrawals in retirement

To help fund retirement in a world of low interest rates, retirees increasingly have to tolerate some level of risk in their portfolios – adding to the volatility of returns.  Combine volatility with the need to make regular withdrawals, and retirees are especially at risk of prematurely depleting their capital should a savage market downturn

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Thoughts on the Active vs. Passive Debate

With the strong growth in index funds and exchange traded funds (ETFs) in the Australian marketplace in recent years, debate is again swirling on the benefits of active vs. passive investment management. Some commentators have suggested that index-oriented investments are merely for “dumb” investors, who have no real skills in picking mispriced securities likely to outperm the

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Bassanese’s Market Insights: a tale of two markets

Although the Australian equity market is traditionally divided up into 11 “GIC” sectors, we can aggregate further into four key broader sectors: resources (energy and materials); cyclicals (industrials, consumer discretionary, and technology); defensives (consumer staples, health care, utilities and telecommunications), and financials (including listed property). Breaking down the market in this way produces some interesting

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Global Markets Review: March Quarter 2015

The latest BetaShares Quarterly Global Market Review is now available.  The report highlights that share prices are becoming expensive in outright terms, and corporate earnings downgrades are intensifying – both in Australia and globally. Despite this risk, share market valuations are closer to “fair value” given the low level of interest rates.  We maintain our

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Bassanese’s Market Insights: $A now close to fair value, but likely to fall further

Following the Reserve Bank of Australia’s decision to cut interest rates last month, ongoing weakness in commodity prices, and heightened expectations that the United States Federal Reserve will raise interest rates within coming months, it’s no surprise the Australian dollar has taken a tumble of late.  Indeed, after a slight firming trend following the February

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