As investors, we are all looking for an edge in earning outsized returns. Here I identify 3 simple portfolio management principles that are essential in any investor’s toolkit, and briefly outline how they can all be brought together into a simple cohesive strategy. Show More
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
In a world where market volatility and low growth are the new norm, asset allocation is more important than ever. As Tim Keegan, AMP Capital’s Head of SMSF and Self-Directed Wealth explains, “It’s more challenging than ever for SMSF investors to improve their returns just by relying on Australian equities,... Show More
Interest rates globally continue to plumb multi-decade lows, or even multi-centennial lows in the case of Bank of England. In this article, we outline some key implications of negative interest rate policy and the ‘lower for longer’ rates regime. We may be about to enter a period where bonds and... Show More
The idea that we have entered a “low return” world is now consensus. The arguments are based on a combination of fundamental macro factors (a low growth world) and extended structural valuations in equity and debt markets, suggesting significant return headwinds. Consistently achieving solid real returns in this environment will... Show More
“Real estate is always good as far as I’m concerned.” – Donald Trump Show More
One thing Brexit has done is remind us about the inherent vulnerability of financial markets to these sorts of shocks. Our approach is anchored to the idea that the ability of markets to withstand these shocks is a function of valuations (cheap assets are in a much better position than... Show More
While markets have in many cases recovered from their Brexit jitters, we are remaining cautious. There is still significant uncertainty surrounding the consequences and timeframe of the eventual exit of Britain from the EU. Likewise, we are skeptical of the sustainability of the recovery in risk assets which seems in... Show More
We have argued for some time that central bank policies – while perhaps necessary from a political and mandate perspective – have been a pervasive force in distorting both asset prices and risk. It is possible (indeed probable) that the limits of this distortion are being tested. That is arguably... Show More
Speaking at a news conference after the Federal Open Market Committee meeting, US Federal Reserve Chairwoman Janet Yellen stated that ‘helicopter money’ could be considered under certain conditions. In Japan, with currency intervention effectively off the table for fear of accusations of being a currency manipulator, there is increasing speculation... Show More