One of the most popular ‘alternative’ investments in recent years has been infrastructure. These projects generally provide great long-term returns. And they benefit society by contributing to and facilitating future economic growth. In the next few months, this exposure to infrastructure could grow even more…
The creative destruction of ‘free or nearly free’ investing is coming. Nothing surer. The destruction we’ve seen in the retail sector will be repeated in the investment industry. A good number of financial planning and investment platform businesses are going to fail to adapt, and will therefore die. But the more imminent disruptor I see coming is one that hardly anyone is expecting.
Australian investors often lament the performance of our market. They look at other markets and wonder why ours can’t be the same. We all know that financial stocks dominate the Australian market (around 40%). That the Big Four banks account for about 30% of the index. Remember, an index simply reflects the stocks that are in it. However, while that profit was 8% higher than the previous year, revenue hardly budged an inch.
Bitcoin is a failure. Few people use it as a currency. It’s too volatile, the transaction costs are too high, and it’s difficult to store and secure. That’s why we keep on saying that you should stick to what’s known to work: stocks. In a world influenced by central banks, we should expect the unexpected. That’s why it’s worth asking: Is the stock correction over or are we due for another dip?
For a long time, Warren Buffet specialised in dumpster diving. He would buy small- and micro-cap stocks that traded at heavy discounts. Then, as a catalyst caused the share price to spike, he sold out for huge gains in a relatively short time. Now it seems droves of fund managers are trying to do the same thing. Let me explain how this will create opportunities for individual investors like you…
This latest ‘no sex with staffers rule’ to pretty much stop ministers from being immoral jerks is the Nanny State’s crowning glory. Meanwhile, politicians elsewhere threaten to bring an end to the first decent bout of post-2008 coordinated global growth by starting a trade war.
They’re calling it the ‘One Belt, One Road’ initiative. It will cover 65 countries, touching more than 4.4 billion people. It’s China’s answer to opening up trade with the rest of the world. This project is a massive opportunity for Aussie businesses. And that means it could also be a massive opportunity for you.
It’s still not clear if China will start selling US bonds. In fact, it could be that China can’t help but buy more US bonds. So what can you do if the second largest US bond holder goes haywire? Reduce losses as much as possible. It’s probably one of, if not the most important rules when investing.
In April 2017, the government established the Financial Adviser Standards and Ethics Authority Limited (FASEA). The purpose of the FASEA is to ‘…set the education, training and ethical standards of financial advisers, licensed under Australian law.’ Admirable intent. What about ‘ethical standards’?
With our wide-open space, clean air and natural wonders, Australia is an exporter’s dream. It’s no surprise that our natural resources are coveted worldwide. However, the export industry in Australia also has a dark side…
‘How safe is my money?’ If I had a dollar for every email I received about that, I’d be a helluva lot wealthier. The only problem is, where would I put all these extra dollars? In the bank? Under my bed? Buy gold? Cryptos? What a dilemma. There are no guarantees with ANY investment. However, I’m fairly certain the government will do all it can to guarantee its survival.
‘Air rights’ weren’t a thing in Australia until a few years ago. Even then, it mirrored the US, where air rights were mostly protecting the space around important buildings. Of course, things change. Now air rights mean something more than just views. Instead of paving paradise and putting a parking lot, the new twist is to rip up the parking lot and put in an apartment block.
Banks are the backbone of many investors’ portfolios. Their steady and growing dividends have been a boon for income investors. They are our biggest dividend payers. But could this all be about to change?
It’s rumoured that Myer sales bring in about $200 million each year for Soloman Lew’s businesses. But that can’t be confirmed one way or the other. The impact of Lew’s retail investments isn’t known because he is extremely secretive with where his business interests lie. So it’s hard to know what Lew is up to.
Cryptocurrencies are a terrible investment, in my view. They are difficult to buy, attacked by governments and hackers worldwide, and in a major downtrend. So, with too many risks to worry about, I suggest sticking to the stock market. That’s where you can sleep at night, while making potentially massive gains during the day.