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Sunday, 31 May 2020
Recently trending 10 undervalued stocks if you're worried about volatilityBaseline outlook for economic recovery is too optimistic Will 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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There's only one subject that matters in financial markets at the moment, and this edition features updated views on coronavirus from leading experts such as Roger Montgomery, Hamish Douglass, Charlie Jamieson and Justin McCarthy.
As much as value investors with spare cash want to jump on undervalued companies, it's probably not the time to buy the dip in the market just yet as the US braces for coronavirus's full impact.
As investors hit the panic button, Magellan's Hamish Douglass is staying his course, advising attendees at last week's Investor Evening to sit tight and take a long-term view.
Market uncertainty, low interest rates and the threat from COVID-19 to global economies have boosted the performance of high quality fixed income assets. Lesser corporates face another story.
For investors able to react quickly when stressed selling hits hybrids, excellent margins are available on quality names. The GFC taught experienced investors lessons that are now repeating.
Just how drastic is that 200-point fall in US markets overnight? Data from the last 35 years shows it takes a big swing for the Australian sharemarket to predictably follow a US lead.
Traditional SMSF asset allocations to cash, banks and property are changing as ultra-low interest rates start to bite, and SMSFs take on more diversified equity and fixed interest exposures.
Antarctica is on many bucket lists, but planning for enough money in retirement should start decades earlier. Setting goals and seeking advice can elevate a comfortable retirement to a great one.
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.
We cannot throw our hands up in the air and say 'this time around, it's simply too hard'. Having no macro view is unhelpful, but many of the baseline scenarios are overly optimistic, says the former CEO of Westpac and now Chairman of Chi-X Australia.
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.
There is a remarkable concentration similarity between the Australian and US stock markets that has delivered poor results for Australians and great results for Americans (and global investors). As the share prices of five Australian banks have tanked, the prices of five US technology companies have surged. Each group now represents 20% of their respective indexes, but the journey has been a disaster for many Australians.
Investors often overlook the capital risk in high-yielding stocks. It's better to ensure capital grows and investors can sell a portion each year to make up for the shortfall in income from dividends.
Everyone seems to be watching The Last Dance, a fascinating sports documentary about the pursuit of excellence by one of the greatest athletes of all time. Let's not stretch the business analogy too far.