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Sunday, 1 November 2020
Recently trending Have the rules of retirement investing changed?18 Aussie names for your watchlistBuffett and his warning about 'virtually certain' earningsHamish Douglass on what really mattersKate Howitt: investing lessons and avoiding the PIPO trade
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Markets always come back to fundamentals, valuations and liquidity, even when faced with a global pandemic. The key question is whether liquidity can hold up the market as the economic storm hits.
Large super funds hold unlisted assets such as infrastructure, property and private equity. It's likely many of these assets have not been revalued recently, inflating the price paid to members who exit.
An investment with any fund manager should be part of an asset allocation decision, but what happens when your equity manager decides to do a major switch to cash? It messes up your plan.
Equity market vigilanties, particularly resisting poor Initial Public Offerings (IPOs), are showing the benefits of active managers not simply buying everything put in front of them.
APRA’s letter to super funds highlights concerns about 'cash' investments. A lack of understanding might haunt investors when the next downturn comes as too many people forsake protection for yield.
One benefit of ETFs for investors is their tradability - being able to buy or sell at any time through the ASX just like an ordinary share. But this leads many investors to mistakenly evaluate their liquidity in the same way.
There's no straightforward answer to the question of whether a bond is liquid. Unfortunately, at the time when you most want to sell, everyone is likely to be running for the exit.
When deciding between listed and unlisted infrastructure securities, the focus should be on the cashflows, the risks associated with those cashflows and the entry price to buy the assets.
Despite similar objectives, the proportion of Australian superannuation assets in alternative and less liquid assets is much lower than for other long-term investors such as family offices and global pension funds.
Australia's defined contribution superannuation market seems to be obsessed with ‘liquid’ investments. For the long-term investment that super inherently is, it doesn't make sense to limit our options.
Shares are an excellent long-term investment, but the ease with which they can be bought and sold can be both a blessing and a curse. Just because you can, doesn’t mean you should.
Despite the Federal Reserve's tapering of its QE policy, liquidity in developed economies will remain abundant with the major central banks adding another USD1 trillion in 2014. But watch for global inflation.
In retirement, we still want to reduce stock volatility while generating cash flows. The two needs have not changed, but the reward expected in the old days from interest payments has gone. What should we do?
A Morningstar stock screener reveals a cross-section of companies with competitive advantages that are trading at material discounts to estimated value. This is a list of 18 highly-rated names worth watching.
While many investors are happy to invest in any online companies, Warren Buffett focusses more on the quality of future growth, buying companies whose earnings are 'virtually certain' in 10 or 20 years from now.
Questions on the stock market/economy disconnect, how to focus long term, technology's growing role, income in a low-rate world, Modern Monetary Theory and endless debt and the tooth fairy.
Kate Howitt identifies the stocks she likes and the disappointments, gives context to the increasing role of retail investors, and explains why the market is more of a 'voting not weighing' machine than ever before.
It is trite and obvious to say the future is uncertain, and while COVID-19 brings extra risks, markets are always unpredictable. However, investing conditions are now more difficult than ever, mainly because the defensive options for portfolios produce little income. We explore whether investing rules have changed with new input from Howard Marks.