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
How can investors generate returns regardless of which way the market moves? In today’s article, I review the unique process which Vega Capital uses to achieve this goal. Show More
Today I wanted to provide some depth on how we use VIX products to manage risk in The Vega Fund portfolio. As far as we know, we’re the first fund in Australia to hedge in this particular fashion and hence some clarity is warranted. It’s not the only tool in... Show More
This week it's gold and real yields. A really important thing happened with interest rates in November last year which should be front of mind for investors thinking about gold. It is a reasonably well established understanding that gold prices trade inversely to real yields, and I'll explain why shortly.... Show More
We believe that global diversification should be at the core of each investor’s strategy. A globally diversified portfolio is likely to be better positioned to weather large movements in markets, and provide a more stable set of returns over time. However, one of the implications of a globally diversified portfolio... Show More
After interviewing leading strategic thinkers I argue in the AFR that there appears to be a 1-in-10 to 1-in-4 probability of full kinetic conflict erupting between the US, South Korea, Australia and North Korea, possibly backed by China, which could turn radioactive, and you had better consider how you can... Show More
We all want to pick a winner on Melbourne Cup Day! So once a year, on the first Tuesday in November, we become experts – scrupulously studying form guides, watching the movement in TAB odds and calling ‘mates’ you haven’t spoken to for 11 months and 29 days for an... Show More
One measure of expected turbulence, the relative cost of options that pay when stocks decline versus those that appreciate when they rise, jumped to the highest level ever recorded just before the S&P 500 Index buckled on Tuesday. The relative cost of hedging a 5 percent decline in an exchange-traded... Show More
Potential event risks that are not fully priced into financial markets include a US Federal Reserve rate hike at any one of their three remaining FOMC meetings before the end of the year, and/or a victory by Donald Trump at the US Presidential election on 8 November. Show More
The recent rebound in the price of gold in light of heightened financial market volatility should serve as a reminder to investors of the “safe haven” properties that this precious metal can offer. What’s more, should more central banks resort to negative interest rate policy (NIRP) in the face of... Show More
