Aristocrat Leisure Limited (ASX:ALL) diversified its exposure beyond gaming machines with its acquisition of social casino business Product Madness and the internet gaming system and remote game server from GameAccount Network. Revenue generated by the business increased from under US$15 million in FY12 to US$354 million in the 12 months... Show More
Domestically focused investors will most likely be ‘diversified’ primarily across four banks and two miners, a strategy that exposes you to shifting rate markets and the vagaries of the commodity cycle. In contrast, investing globally opens up the full spectrum of sectors, but the question then is how to do... Show More
When it comes to investing, Australians forego their ‘globetrotter’ reputation and rarely look past local companies. In consumption, however, we are far worldlier and have embraced international brands such as Apple, Samsung, Google, BP and Toyota. Show More
With challenges for equity markets rising, even a defensively positioned balance fund, with just 45-50% equity exposure could struggle to deliver positive returns, warns Simon Doyle, Head of Fixed Income & Multi-Asset at Schroders, who emphasises that true flexibility in asset allocation will be critical ahead. Show More
After what has been a very long run of strong market returns, it is only natural that investors’ attention starts to move toward when that run might end, and as each day passes, we move closer to the end of the cycle. This kind of sentiment understandably makes investors somewhat... Show More
Diversification is one of the basic principles of finance, but it’s also often misunderstood. As one of the few genuine ‘free lunches’ in finance, it’s worth busting some of the myths around diversification to clear up these misunderstandings. In this wire, we outline five common myths about diversification. Show More
In this wire, we discuss building a diversified portfolio without sacrificing on returns. Not only is it essential to diversify your eggs across different baskets, it’s equally important to make sure you’ve got concrete eggs and steel baskets. Show More
The Kilauea volcano has been erupting almost constantly for the past 35 years. The current investment landscape reminds me a lot of Kilauea, with numerous ongoing geopolitical eruptions and their financial ‘lava’ threatening to recast the map of long-standing investment strategies. Show More
As Peter Lynch once famously said “You get recessions, you have stock market declines. If you don’t understand that’s going to happen, then you’re not ready, you won’t do well in the markets”. Today I’m going to discuss some ways in which investors can protect their portfolios from downside risk. Show More
Investors hunting for yield from listed companies today face unreliable yields, and falling capital values as rates creep higher, as well as new additional risks posed by government policies. However, investors can diversify their income and access comparable yields from other parts of the market not exposed to such headwinds. Show More
Twenty-six years of uninterrupted economic expansion. Australia’s recent performance is now unmatched in history. While a handful of factors have been key to this outcome, without doubt, the floating of the Australian dollar in December 1983 was one of the most critical. According to former Reserve Bank of Australia (RBA)... Show More
When Australians travel we like to explore the unfamiliar. We’re quick to purchase the latest gadgets and we crave international brands. In the corporate world, many professionals consider themselves global citizens, travelling abroad for work and play. Show More
One of the lasting impacts 9 years after the global financial crisis is ultra-low interest rates. This is great if you are a borrower, but not great if you are a saver – because if you avoid risk today, your returns will almost certainly be very low, and potentially lower... Show More
Financials dominate the ASX200, comprising 35.4% of the index. This compares to 14.7% of the S&P500. Andrew Fleming, Deputy Head of Australian Equities at Schroders, points out, they are a big part of the index - because they make a lot of money. Here he questions whether this will continue. Show More
Ray Dalio, Chairman and CIO of Bridgewater Associates has released a new memo this morning where he notes that risks are rising and prudent investors should be preparing wisely. The key points of the memo are: Show More
Let's first consider the broader global economic environment, in particular, the macro drivers of a “globally co-ordinated” gradual improvement in economies which are continuing to evolve. The primary driver of markets, at this point in time, is globally accommodative monetary policy, which underpins economic expansion and the rise in financial... Show More
Jamieson Coote Bonds are becoming more aware of the causes that lead to many Australian investors losing a large portion of their retirement savings during the last GFC. Some of this can be linked to a lack of diversification, a large bias to long-only equities, and in many cases, little... Show More
“We’ve never in history, run sophisticated economies, with sophisticated financial systems, through declining populations. It is a truly unique event.,” said Mark Burgess from Jamieson Coote Bonds at the recent Livewire Live investor forum. “ affects all asset classes in strange ways… House prices don’t work when demographics don’t work.”... Show More
Many investors have financial goals. These presume certain returns over defined time frames. To achieve this, most Australian investors rely heavily on the local stock market. This may prove lucrative if you get your stock selection and timing right. As we have seen in recent years, however, equity returns can... Show More
Adam Grotzinger explains two of the reasons Neuberger Berman believes there‘s an opportunity for investors to reduce 'home bias' in portfolios and to generate income from the US home loan market. Firstly, new regulations post the GFC has become highly constrictive with tight standards around documentation and the ratio of... Show More