The negative effects of ALP policies on housing, SMSFs and profit margins are already impacting certain sectors of the market, such as banks, residential property developers, homebuilders and retailers. Show More
Investment Theme
Australian bond yields declined rapidly over the December quarter, anticipating a major slowdown in the Australian and global economy. Real estate has a correlation to bonds, a function of the leases it has in place with its tenants and generally performs well in weak equity markets. Show More
Shares in retail real estate investment trust (REIT), Vicinity Centres (ASX:VCX), rallied in July, supported by an upward revaluation of its property portfolio and the announcement of a share buy-back. Show More
Since the rapid 20% correction witnessed from August to November 2016, the real estate and infrastructure sector has made a significant recovery. This recovery is difficult to reconcile given there has been no fundamental improvement in the earnings outlook for many of the securities that have rallied so strongly –... Show More
Over the last month the ASX200 has rallied 2.4% but the insurance sector slipped 0.4%, this comes as the local bourse continues to be nerved by future margins. Insurance companies clearly carry an inherent risk by the nature of their business and when badly managed, as we have witnessed over... Show More
Money remains in all senses free, as companies that are desperate for growth in this anaemic economic environment try to keep shareholders happy. Corporate activity and acquisitions are clearly the plan for a number of company boards. Picking either takeover targets or corporate activity is very hard at best, but... Show More
Real estate investment trusts were among the strongest performing sectors of the Australian sharemarket in 2014. That's not surprising, as investors hunt for income and yield, which property-based investments traditionally deliver. Industria REIT stapled securities is one property-related opportunity that we think is still attractive. Industria listed in -December 2013... Show More
A wolf in REIT's clothing. After enduring the heat of excess leverage and insufficient cash flow the A-REIT sector has reformed greatly from its pre GFC excesses and subsequent Icarus moment. Despite the underlying fundamental risks now being far lower than seven years ago, the valuation risks facing investors are... Show More