In 2017, emerging markets delivered some of their best returns since 2009. However, a series of headwinds – which include a stronger US dollar, lower liquidity due to rising US rates, China’s attempts at deleveraging, and uncertainty surrounding trade – have now hit. This has meant some of those gains... Show More
...Or that is what some equity pundits masquerading as bond experts want you to believe. They predict that a ‘bondcano’ of rising interest rates will lead to collapsing prices for bonds and bond-like proxies. Over the last few months, this hype about rising global interest rates reached fever pitch due... Show More
Buy Hold Sell
It's been a dream run for equities recently, with indices steadily floating higher. This week, however, volatility returned and investors got a sniff of reality. With this in mind, we’ve asked our panel to focus on stocks that possess strong defensive characteristics. The companies covered have predictable, annuity style earnings and... Show More
We continue to see signs that the global industrial cycle is turning and this appears to be reflected somewhat in equity market performance, with a more risk-on pattern emerging and the stellar run from defensive income trade/low volatility trade underperforming recently. Earnings expectations for cyclical companies are so low that... Show More
Uday Cheruvu, Portfolio Manager at PM CAPITAL, sees risks in ‘expensive defensive’ stocks at current prices. Prices on Transurban and Sydney Airport have risen over 120% each in the past five years. The driver behind these gains is the 10-year government bond rate falling from 5-7% a few years ago... Show More
Kevin Beck, Portfolio Manager at Paradice Investment Management, sees investors lowering their hurdle rates for returns in this environment of low interest rates. As investors search for returns, they are taking on more risk and driving multiples higher. “The perceived safer businesses trade at multiples we haven’t seen in our... Show More
Mantra Group (MTR) Another property joins the MTR stable→ Post being added to the ASX200 index, MTR has been a strong out-performer in a volatile market. MTR confirmed late last week, that it has further increased its footprint on the Brisbane market having acquired the Management and Letting Rights for... Show More
Defensive stocks have substantially outperformed the overall share market over the past four years or so on the back of sluggish economic conditions together with low and falling interest rates. Peter Quinton talks about our favoured stocks in his latest Quintessentials video found here: Show More