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Andrew Mitchell

Bigger fall, bigger bounce: small caps into and out of recessions

Smaller listed companies tend to fall first and furthest when an economic downturn hits but they recover the strongest. Here are three reasons why small caps may see strong returns after the recovery takes hold.

Bear markets don't go paw-in-paw with recessions

In the 12 US recessions since WWII, the S&P500 index has contracted from peak to trough by a median of 24%. We were almost there in June 2022 but trying to time the bottom of the market can be a costly strategy.

7 truths of volatility, but are they friends or foes?

Market volatility is back and might be staying. Should investors be worried or is this part and parcel of investing in shares? Here are seven truths of volatility that will help investors ride the market’s gyrations.

Chairman Powell and Omicron: the Grinches who stole Christmas?

Omicron and central bank policy changes have spoiled Christmas, especially for the value of businesses with the most profit growth far in the future. Has the pullback in parts of the global market been overdone?  

Personal finance is 80% personal and 20% finance

Understanding your own biases and behaviours is even more important than learning about markets. Overcome four major cognitive biases that may be sabotaging your investing and recognise them in others.

Is your fund manager skilful or just lucky?

How do you separate skill from luck in the performance of a fund manager? Investing is a mix of art and science in a highly-competitive industry full of smart people. Here are tips on what to look for.

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Interviews

AFIC on the speculative ASX boom, opportunities, and LIC discounts

In an interview with Firstlinks, CEO Mark Freeman discusses how speculative ASX stocks have crushed blue chips this year, companies he likes now, and why he’s confident AFIC’s NTA discount will close.

Investment strategies

Solving the Australian equities conundrum

The ASX's performance this year has again highlighted a persistent riddle facing investors – how to approach an index reliant on a few sectors and handful of stocks. Here are some ideas on how to build a durable portfolio.

Retirement

Regulators warn super funds to lift retirement focus

Despite three years under the retirement income covenant, regulators warn a growing gap between leading and lagging super funds, driven by poor member insights and patchy outcomes measurement.

Shares

Australian equities: a tale of two markets

The ASX seems a market split in two: between the haves and have nots; or those with growth and momentum and those without. In this environment, opportunity favours those willing to look beyond the obvious.

Investment strategies

Dotcom on steroids Part II

OpenAI’s business model isn't sustainable in the long run. If markets catch on, the company could face higher borrowing costs, or worse, and that would have major spillover effects.

Investment strategies

AI’s debt binge draws European telco parallels

‘Hyperscalers’ including Google, Meta and Microsoft are fuelling an unprecedented surge in equity and debt issuance to bankroll massive AI-driven capital expenditure. History shows this isn't without risk.

Investment strategies

Leveraged single stock ETFs don't work as advertised

Leveraged ETFs seek to deliver some multiple of an underlying index or reference asset’s return over a day. Yet, they aren’t even delivering the target return on an average day as they’re meant to do.

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