Why investors need to be wary of crowds

Published: February 12, 2014

Sometimes being at one with a crowd can be nice, eg at rock concerts it adds to the ambience and safety in numbers can provide comfort. However, when crowds turn they can be dangerous – you might get trampled! In fact a wariness of crowds is essential to successful investing. The Japanese bubble of the […]

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The Australian dollar – still more to fall

Published: February 6, 2014

Over the last year the $A has fallen from around $US1.05 to around $US0.89 – a fall of 15%. In fact the $A is down nearly 20% from its 2011 high. The drivers of the slump have been a combination of lower commodity prices; increasing evidence that Australia is not competitive internationally; a deterioration in […]

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The threat from emerging markets – how serious?

Published: January 28, 2014

Download PDF copy The past week has seen renewed concerns about the emerging world reflecting a combination of political problems in several countries including Turkey and the Ukraine, a currency devaluation in Argentina and ongoing concerns about Chinese growth. Such concerns also reflect the impact of the Fed slowing its monetary stimulus at a time […]

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The risk of a correction or new bear market in shares

Published: January 23, 2014

Download PDF copy Watch video Since the height of the Eurozone public debt crisis in September/October 2011, global shares are up 58% and Australian shares are up 37%. After such strong gains an obvious issue is whether shares have got ahead of themselves, leaving them vulnerable to a fall. This note looks at the risks. […]

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Market Watch – January 2014

Published: January 15, 2014

Download Market Watch – January edition and read the full report. (1MB file) This edition: The year ahead should be positive for investment markets as monetary conditions remain easy and global growth picks up We explore what to look out for in 2014 Can gold reverse last year’s 28% decline or are further falls in […]

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2014 – a list of lists

Published: January 15, 2014

Download PDF copy 2013 turned out to be a very good year for investors in well-diversified portfolios as the threats of the last few years receded and global growth prospects improved. The US did not have a fiscal crisis, the Eurozone continued to stabilise, Japan recovered, Chinese growth stabilised and Australia saw signs that low […]

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The Fed tapers – what it means for investors

Published: December 19, 2013

Download PDF copy In what was perhaps the most anticipated event this year the US Federal Reserve has announced it will reduce the pace of its third quantitative easing (QE3) program by $US10bn a month. The Fed has been foreshadowing a “tapering” since May 22nd so it’s a surprise to no one. This note looks […]

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Busting the super myths

Published: December 12, 2013

Myth 1 – Super is a type of investment. Wrong. Super is a tax-effective way to save for your retirement. Within super you can invest in different types of investments—or asset classes—with different levels of risk and return. Myth 2 – I have no control over my super. Wrong. Super is your money and, while […]

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The morning after the night before

Published: December 12, 2013

It’s always the same. You’ve hit it too hard over the festive season and come New Year’s Day you feel like a wreck. The physical hangover is the easy bit—pop a vitamin, brew a strong pot of coffee and get some rest. But it’s the emotional and financial hangover that can take longer to shift. […]

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The morning after the night before

Published: December 12, 2013

It’s always the same. You’ve hit it too hard over the festive season and come New Year’s Day you feel like a wreck. The physical hangover is the easy bit—pop a vitamin, brew a strong pot of coffee and get some rest. But it’s the emotional and financial hangover that can take longer to shift. […]

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