Key points My nine most important lessons from investing over the past 35 years are that: there is always a cycle; the crowd gets it wrong at extremes; what you pay for an investment matters a lot; getting markets right … Continue reading →

Key points The RBA’s latest rate cut is aimed at heading off a further slowing in growth which would threaten higher unemployment and lower for longer inflation. Cutting the inflation target would be a big mistake. More rate cuts are … Continue reading →

Key points The combination of the removal of the threat to property tax concessions, earlier interest rate cuts, financial help for first home buyers and APRA relaxing its 7% interest rate test points to house prices bottoming earlier and higher … Continue reading →

Key points The trade war between the US and China has returned after talks to resolve their trade differences broke down. Our base case remains that a deal will be reached to resolve the issues, but the risks to global … Continue reading →

Key points Seasonal patterns typically see shares do well from around November to May and not so well from May to November. This partly reflects a combination of tax loss selling in the US, new year cheer and the pattern … Continue reading →

Key points Surprisingly low inflation in Australia has increased the pressure on the RBA to cut interest rates again. We continue to see the cash rate falling to 1% by year end and now see the first cut coming as … Continue reading →

Key points Australian elections tend to result in a period of uncertainty which have seen weak gains on average for shares followed by a bounce once it’s out of the way. With Labor promising higher taxes, larger government and more … Continue reading →

Key points The 2019-20 Budget “delivers” the long-awaited surplus and increased fiscal stimulus mainly via tax cuts/offsets. The main risk is that the revenue boost is not sustained & the budget continues to have relatively optimistic assumptions regarding wages growth. … Continue reading →

Key points The rebound in share markets since December has left them vulnerable to a short term pull back. Worries about global growth as evident in plunging bond yields and the flat/inverting US yield curve (and risks around trade) could … Continue reading →

Key points Growing support for higher taxes on the rich and greater government intervention in the economy suggest median voters have shifted to the left. Support for economic rationalist policies has fallen. The risk is that the shift away from … Continue reading →

Key points. Australian growth slowed even more in the December quarter. Growth may bounce back a bit this year, but the housing downturn will likely constrain it to around 2-2.5%. As a result, unemployment is likely to drift up and … Continue reading →

Key points Dividends are great for investors. They augur well for earnings growth, provide a degree of security in uncertain times, are likely to comprise a relatively high proportion of returns going forward and provide a relatively stable source of … Continue reading →

Key points After a strong rebound since December share markets are at risk of a short-term pull back. However, despite this we see this year as being a decent year for share market returns. Five key global charts to watch … Continue reading →

Key points Successful investing should be simple but increasing rules, regulations, choices and social media are making it anything but. At its core, it is still simple though. These five great charts focus on critical aspects of investing: the power … Continue reading →

Key points China’s economy is slowing but not collapsing as the services sector holds up. A further slowing is likely in the short term, but policy stimulus is likely to see growth improve in the second half, giving 2019 growth … Continue reading →