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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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Italy is so weak economically, financially and politically that it poses an existential threat to the eurozone. Solutions to appease the crisis face political hurdles and a euro exit is possible.
The turning point in this crisis will be when the number of new COVID-19 cases starts to decrease. Until then, can we mitigate the damage to businesses and the economy so that we can snap back?
The Australian market bounced back last Friday (13th) and Monday (16th) tempting analysts to call the bottom of the coronavirus scare. This is too early as the impact on companies is not yet evident.
Nobody has a clue what is going to happen with the market. When deciding what to do with your stocks today, what matters is where the business and its intrinsic value may be 10 years down the line.
Quantum computers have a theoretical ability to calculate millions of possibilities in seconds, yet it may take time before we see a breakthrough in the practical applications of sub-atomic computing.
Our close links to China mean the impact of the virus could tip the local economy into recession and certain sectors such as resources, education and travel will be harder hit than others.
Prolonging a recovery with stimulus could lead to a worse slump later. Even today, policymakers are haunted by actions taken in 1937 which led to a loss of production and jobs and a falling GDP.
The market has been looking for inflation for most of the last decade. Low interest rates should increase consumption, borrowing and demand and result in higher prices. What killed inflation?
For a decade of accommodative central bank monetary policy, investors have been more macro-oriented, following liquidity and rate patterns. It’s time to focus on companies and be more micro-oriented.
Inevitably, with each new development in this cycle, investors as what they can do to prepare for a recession. Our answer: revisit asset allocation, diversify, and review active risks in your portfolio.
A global investment strategist looks at why this cycle may be different, and examines the potential invested yield curve for hints from the past.
Many experts are warning that over the past 60 years, the yield curve has inverted in advance of every recession, but will a yield curve inversion have a different result this time?
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.