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Friday, 29 May 2020
Recently trending Baseline outlook for economic recovery is too optimistic 10 undervalued stocks if you're worried about volatilityWill our government embrace these three reforms?Welcome to Firstlinks Edition 357Don't invest just for yield: the smarter way to generate income
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COVID-19 is an opportunity for a crucial policy reset, but what does that really mean? Business is hoping for three big reforms, but there are massive barriers to be overcome.
Coronavirus is a particular worry compared to past epidemics because the world is now so interdependent, but the stockmarket has a habit of exaggerating threats as well as opportunities.
As we approach the 2020s, we are sailing into uncertain waters at best. These times also have some historical precedents, but we need to make important reforms before our luck runs out.
While Australian businesses generally achieve returns below global comparisons, our Best 50 have delivered results well above the accepted world best practice level, and they come from a diversity of industries.
Housing prices and construction rose dramatically until 2016, and since then, low interest rates are helping home owners weather the storm of falling prices. How long until the blue sky shines again?
The big institutions looked outside banking for growth, but found complex conglomerate structures hard to manage and needing different skills. Now it's back to basics, just as another challenge looms.
If you had to choose one concept to explain to a young person setting out on an investment journey, it should be compounding. While the results are not as spectacular, it's especially relevant when returns are lower.
Despite signs of optimism, market valuations are stretched and recovery is fuelled by government support. Some companies are doing well but stimulus cannot continue to prop up consumers for too long.
The key to investment success from here is the ability to ignore the crowd and the hot stocks. We will then face a once-in-a-lifetime chance to buy cyclical and industrial stocks with significant upside.
Amid the coronavirus-induced turmoil, many quality names are trading at a discount to fair value, according to Morningstar analysts. A smaller list of companies also screen for earnings certainty.
SMSF trustees are concerned about stock market volatility and low interest rates, and they asked six important questions during this seminar on whether gold has a role in their portfolios.
Treasury has finally banned commissions paid to brokers and advisers on LICs and LITs but the exemption from FoFA rules remains for other listed products in the 'real' economy, whatever that is.
The simple message to diversify is not new, but thousands of SMSF trustees focus only on equities and dividends. COVID-19 is encouraging SMSFs to consider different investment strategies.
It is always easier to see the challenges and risks while underestimating ingenuity and positive possibilities. It's likely to be the case this time, too, as long as we move quickly to open economies.