Running to Stand Still

Etienne Alexiou

On the 9th March 1987 U2 released the Joshua Tree, the fastest selling British Album of all time that went on to sell over 25 million copies. Joshua Tree is still acclaimed as one of the greatest albums of all time. Interestingly Bono considered pulling the album prior to its... Show More

He’s going the distance, he’s going for speed

Brett Gillespie

Have you ever pushed the limit? Sure you have, just that little bit further, just that little bit faster. It’s the secret to success. But also sometimes disaster… Perhaps nowhere is breaking that limit as obvious as on a race track. Yet how many of us, as amateurs, love to... Show More

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7 considerations to help you invest in corporate bonds?

Elizabeth Moran

Investing direct or through exchange traded funds (ETFs), or managed funds has advantages and disadvantages; just like investing in shares, the decision depends upon the individual. While my preference is direct investment, the minimum needed is $250,000, making it difficult for smaller investors to access. Show More

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House Prices in Benign Correction

Christopher Joye

In my AFR column I explain why the housing correction appears to be very benign (until the RBA raises rates); why we took profits on our AAA rated asset-backed book; why the new A- rated issue from Singaporean bank DBS looked very cheap (and has subsequently performed strongly); and why... Show More

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The five charts the experts are watching right now

Livewire Exclusive

Bond markets recently slapped equity investors in the face with a 50-basis point reminder of who is really in charge here. As the famous quote from James Carville goes: “I used to think that if there was reincarnation, I wanted to come back as the president or the pope or... Show More

Why Rate Rises Will Crush All Asset Prices

Christopher Joye

In my AFR column I explain how we faded the recent equities shock picking up $159m of cheap assets but why in the longer-term equities and property are likely to be subject to more serious corrections as higher wages growth and inflation inevitably become the dominant investment dynamic, forcing discount... Show More

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Right into the danger zone...

Brett Gillespie

It was February 4th, 1994, and I was on a plane to LA from Sydney. I was treating myself to 4-week holiday skiing in Aspen and then on to New York; 1993 had been a good year. Initially when my boss, Richard Farleigh, had resigned 10 months earlier I wasn’t... Show More

This is not a drill – It's time for Australian investors to focus on defence

Charlie Jamieson

So far in 2018, markets have grappled with rising bond yields, full employment, US Federal Reserve tightening, a weak USD currency and rising fiscal deficits, spurred by tax reform. We have seen these exact issues before. The year was 1987. Show More

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UBS: Now is not the time to reduce exposure

Alex Cowie

Mark Haefele, the Global Chief Investment Officer at UBS penned a short note on the US market’s drastic pullback, calling for calm and suggesting it is not time to reduce exposure, not unless rates or inflation keep rising. Here’s his comment in full: Show More

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Does Fixed Income Still Diversify Portfolio Risk?

Gopi Karunakaran

As global expectations of rising interest rates and inflation begin to become more mainstream, investors are wise to pause and reflect on what this means for their overall portfolios. Against this backdrop, both long-term and more recent data strongly suggests that simply holding passive allocations to government bonds may not... Show More

Sharp fall for the Aussie as US bond yields pass Australian bond yields?

Stephen Koukoulas

US bond yields are rising more quickly than the equivalent Australian yields. The 10 year government bond in the US is now yielding 2.71 percent, just 14 basis points below the Australian 10-year bond and if the recent trends in the relative economic fundamentals of the two countries is sustained,... Show More

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Contagion Risk in Big Bond Bubble

Christopher Joye

As we roll into another new year, in the AFR I ask: "Is the fixed-rate government bond market – to be distinguished from floating-rate securities – in the mother-of-all bubbles? Very likely. Has it burst? Maybe, although the evidence is not persuasive. As it normalises, will it cause mayhem in... Show More

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US bond yields heading higher in 2018

Elizabeth Moran

In this second of a three-part series from guest contributor, ex ANZ Chief Economist, Warren Hogan, this note assesses the outlook for US bond yields and explains why the US 10 year Treasury yield could be heading for 3.50%. Show More

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Livewire Summer School: November rain, and insurance claims

Livewire Exclusive

Guns N’ Roses released their first debut album titled “Appetite for Destruction” in July 1987. Three months later one of the most violent and unexpected equity market corrections in US history occurred. The Dow lost 22.6% of its value on Black Monday, and the causes behind the dramatic fall are... Show More

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Livewire Christmas Cracker #8: Get ready for volatility in 2018

Livewire Exclusive

In our new 'Christmas Cracker' series, each morning through to Christmas we will bring you a top insight from one of our contributors. These will be diverse and could be a macro call, sector view, stock idea, or even some useful tech. Today’s insight is from Chris Manuell, Jamieson Coote... Show More

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Where’s the best place to invest in this market?

Livewire Exclusive

Asset markets are running on a high and investors risk appetites are growing, it seems like the shadow of the GFC has finally faded and the boom is back on. With interest rates still near generational lows, subdued inflation, and improving business conditions, it’s easy to see why investors are... Show More

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High-yield bonds and investment-grade bonds: How to balance them

Elizabeth Moran

High yield bonds are tempting but come with greater chances something could go wrong. This wire gives some tips in getting the balance right between high yield and investment grade, and displays a sample portfolio for both strategies. Show More

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Charlie Aitken: Setting the trap

Livewire Exclusive

One change in the investment landscape is that markets now only price in the present and there’s no great institutional advantage in access to information. That’s the view of Charlie Aitken, CIO of AIM Funds, who describes his process as akin to setting a trap in anticipation of changing markets. Show More

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The only four things that matter in the global economy

Chris Watling

Most of the time only a few things really matter with respect to the outlook for the global economy. If one can work out what those key debates are, and how they resolve themselves, then the asset allocation and investment decisions should fall out of that analysis. Show More

Is Aussie Credit Cheap or Dear?

Christopher Joye

In the AFR today I examine whether Aussie corporate and financial bonds are currently cheap or expensive relative to pre-GFC and post-GFC spread levels, on the basis of bottom-up modelling of their fundamentals, and compared to US investment-grade and high-yield credit (click on that link to read for free or... Show More

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