Financial advisers and investors may have a tendency to shy away from taking an active approach to currency management due to the perception that currency movements are highly unpredictable. Whilst this may be true in the short term, the longer-term direction of currencies can often be reasonably predictable. Show More
Chris Watling from London-based Longview Economics has been a vocal bear for some time and recently called for an Australian recession. The real question now though is what can investors do with this information? We asked him and his responses were quite surprising. Show More
Given the sudden volatility in global markets at the end of 2018, we felt it was important to meet with fund managers we currently invest in and seek out potential new opportunities. So we commenced 2019 with an extensive research program meeting 42 investment managers over 4 weeks in Melbourne,... Show More
Emerging markets were volatile throughout 2018, especially during quarter four as they sold off and took some valuation froth out of the market. This has continued into 2019 thus far, but as investors, it’s important to step back and take a longer-term view of the situation. I recently sat down... Show More
Equities, fixed income, and alternatives tend to get all the media attention and headlines, but there's an oft-forgotten asset class that underpins most investor's portfolio's: cash. Low rates around the world have seen cash fall out of favour with investors in recent years. In this wire, I'll explain some of... Show More
At this time of year many investors look back on the returns achieved in various asset classes in the previous year and reconsider their asset allocations. In 2018, Australian government bonds (+5.2%) soundly beat the ASX accumulation index (-2.8%). The gains for government bonds were driven by yields falling, with... Show More
It has been an incredibly ugly period for funds management in recent months, albeit a very informative one for their investors. Unfortunately, the market environment is transitioning, and in response many fund managers have – simply put – been found wanting. It is exactly this type of period when manager... Show More
Jeremy Grantham, Co-Founder and Chief Investment Strategist at US-based $75 billion fund, GMO, has some form in calling out bubbles. So it was notable that their asset allocation team argued in a recent note that the US market could be a bubble that is now in the early stages of... Show More
Investors have likely heard asset allocation specialists advise increasing portfolio exposure to 'alternatives' given the current market conditions. Invesco's Alternatives Investment Strategist, Walter Davis, explores this asset class and suggests 5 alternatives to consider right now. Show More
What trends will matter for asset allocation in 2019? Our Multi-Asset Solutions team share three factors that have influenced their shorter-term and longer-term asset allocation decisions over the past year – and why they remain relevant for investors in markets ahead. Show More
With the housing market continuing to make news, we examine nationwide house prices relative to changes in income, lending rates and a measure called ‘hypothetical borrowing power’, to assess how they compare to 'fair value'. Show More
In a panel discussion at Livewire Live in 2016, which you can see here, I described my worst fear at that moment: the danger of a trade war. In this wire, I revisit my thesis and ask what it means for investors. Show More
Almost universally weak performance of fund managers over the last two months has left many advisers and their investors in shocked disbelief, or hiding under their sheets unwisely hoping for a change in market conditions. It has been almost impossible for those with active manager portfolios to avoid at least... Show More
What would you nominate as the single biggest risk to the local stock market right now? In an interview at a recent event held by IRESS and Livewire, we asked Brad Matthews, who consults to Advisors and Managers on asset allocation, for his view. Show More
The recent equity market rally in response to dovish FED language again highlights how dependent equity markets are on government stimulus and sugar hits. Show More
As a provider of asset allocation advice to fund managers and advisors, Brad Matthews provides an expert view of the big picture for each asset class. Weeks before 'Red October', Brad gave Livewire readers an explicit early warning in his wire offering ‘Three reasons to lighten your equity exposure'. Show More
There is (arguably of course) a bubble in nearly every mainstream asset class. A bubble in debt markets, a bubble in property, a bubble in equity, a bubble in private assets, and a bubble in the way portfolios are managed. This is an artificially created result of easy monetary and... Show More
Yes, your investment portfolio is quite realistically stuffed. At least in terms of being best aligned with what you need or want. At the very least, the investment portfolio you’re in is almost certainly less ideal than it could be, if not imprudent for the world we live in. Show More
Some of the worst monthly market returns in history have occurred in the month of October, and I’m sure it will come as no surprise to you to learn that this year’s was one of them. The ASX200 fell -6.1% in October, its worst monthly performance in almost four years.... Show More
The current Fed rate hikes, combined with efforts to shrink its balance sheet, represent the first sustained tightening in US monetary conditions, and therefore much of the developed world, for at least 30 years. So what does this mean for investors and how should they change their investment strategy to... Show More
