Why the bull market persists

Andrew Fleming
Andrew Fleming Schroders

In the context of the Sir John Templeton quote “… Bull markets are born on pessimism, grow on scepticism, mature on optimism and die of euphoria …” we are clearly still in the optimistic phase. Show More

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A good year ahead for resources

Tim Hannon
Tim Hannon Newgate Capital Partners

We have argued the case for an exposure to the resources sector for over 12 months. Despite the excellent performance of the sector over this period, we continue to remain confident as our multi-pronged investment case remains intact. Show More

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Resource stocks haven't run their race yet

Naheed Rahman
Naheed Rahman Flinders Investment Partners

Over the past quarter, much of the small-cap index outperformance over large caps has been due to the excellent returns of small resource companies. Given their cyclical nature, is that a reason to look elsewhere? The following note makes it clear that we think not. Show More

Where in the mining cycle are we today?

Hugh Dive
Hugh Dive Atlas Funds Management

Unlike industrial companies such as Amcor or Transurban, profits for mining companies are inherently cyclical. The earnings from mining companies are subject to booms and busts, largely outside the control of their management teams. This occurs as ultimately any company producing a commodity is a “price taker” not a “price... Show More

resources mining cycle ASX:BCI ASX:OZL ASX:RIO

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The sky is not falling, but storm clouds are brewing

Jason Teh
Jason Teh Vertium Asset Management

The sky is not falling was the message in September 2017. Our message was that the overall market did not show excessive valuations, which generally is a precursor to stock market corrections. However, our market outlook dimmed due to recent ‘risk-on’ rally, where most of the year’s return was delivered... Show More

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Gold Market Déjà Vu – Why Gold Could be the Commodity Dark Horse of 2018

Gavin Wendt
Gavin Wendt MineLife

There’s an overwhelming sense of déjà vu as far as the gold market is concerned. Two years ago during December 2015, we witnessed the first US Fed rate hike since the 2008 GFC – a 25-basis point increase. This followed years of promises, threats and jawboning by the US Federal... Show More

Can Telstra be a global technology giant?

Andrew Fleming
Andrew Fleming Schroders

Another year (almost) over, and assets have again been on a tear. All ASX sectors have performed well this year, with most generating double digit returns, consistent with global experience. The other global norm is the notable sectoral exception to this great performance; Telecommunications has been the laggard, underperforming by... Show More

Rio buy-back looks attractive, but beware the scale-back

Dr Don Hamson
Dr Don Hamson Plato Investment Management

On 22 September 2017, Rio announced a A$2.5B share buy-back which includes A$700M as an off-market buyback and the balance being allocated to Rio Tinto’s existing on-market buyback. Show More

resources income ASX:RIO ASX:PL8 Plato Investment Management

The riskiest sector in the ASX200 index

Olivier d'Assier

Just how risky is the Materials sector? That’s the question we sought to answer as we dive into one of Australia’s largest industries. We use Axioma’s Multifactor Australian Risk Model to map the sector’s risk characteristics, style footprint, as well as the type of investment opportunity it offers investors. Show More

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Miners are Exploring again. It's 8 o'clock and Greed is Back

Hedley Widdup
Hedley Widdup Lion Selection Group

Resources equities have outperformed the rest of the market by a wide margin in the time since January 2016, when the long bust ended. This period has been marked by increasing investor interest in miners, and consequent increase in liquidity - investor funds flowing toward the sector. Show More

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Robust Commodity Outlook

Gavin Wendt
Gavin Wendt MineLife

Given recent headlines and speculation with respect to commodity prices, I thought it worthwhile to outline my views on the near-term picture. Overall, I remain very optimistic with respect to prices and demand. In particular, recent positive Chinese commodity demand data and outcomes from the recent Chinese Communist Party Congress,... Show More

Resource Sector Momentum Building

Gavin Wendt
Gavin Wendt MineLife

Commodity prices have defied pessimism and rallied solidly over recent months on the back of improved Chinese economic prospects, stability on the European political front, some degree of acclimatisation to Trump-related government volatility in the USA - and a weaker US dollar. Show More

Sunset Strip > Trading Day Wrap From Blue Ocean 20170526

Mathan Somasundaram
Mathan Somasundaram Blue Ocean Equities

Local market was smacked down on the open before making a slight recover…market reducing exposure before US goes into a long weekend…Memorial Day on Monday. The best performers were Gold, Property and Utilities while Energy, Miners and IT were the worst trading was in play…bond yields fell as well.... Show More

Sunset Strip > Trading Day Blue Ocean Market Wrap 20170331

Mathan Somasundaram
Mathan Somasundaram Blue Ocean Equities

Local market ran out of puff and closed at the lows of a negative last day of the quarter. We are heading into the last week of trading before school holidays and institutional investors are likely to lock in their profits before going on holiday with their families. Retail investors... Show More

A page from the Chinese commodity playbook

Nikko Asset Management Australia

China has had a significant impact on the supply side in two key global commodities during 2016. Going forward, look out for further actions from China on the supply side of commodities. Show More

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Stocks, rates, and inflation

Buy Hold Sell
Buy Hold Sell Livewire

In this Buy Hold Sell thematic discussion, the ‘two JB’s, Justin Braitling from Watermark and Julian Beaumont from Bennelong, discuss inflation, rates, and how important they are to equity markets. They finish by highlighting some sectors presenting opportunities, and some to stay clear of. Show More

Three downside risks to the Australian economy

David Bassanese
David Bassanese BetaShares

An element of optimism appears to have crept back into the Australian economic outlook over the past month or so, culminating in the Reserve Bank’s latest above-consensus forecast of above-trend economic growth in 2017. But, as this note points out, the economy still appears to face at least three critical... Show More

The Burgeoning Uranium Renaissance

Gavin Wendt
Gavin Wendt MineLife

Anyone even remotely associated with the resource sector is well acquainted with the concept of patience. One interesting quote that probably sums up what’s required is as follows: “Patience is not the ability to wait, but the ability to keep a good attitude while waiting.” Nowhere is this more relevant... Show More

One thing the market is overestimating

Livewire Exclusive

Expectations of increased infrastructure spending in the US have added fuel to the resurgent prices for commodities such as coking coal and iron ore. Alex Duffy from Fidelity cautions that investors may be overestimating the size of any impact US stimulus will have on demand for commodities. Even if the... Show More

OPEC Doing a Great Job Balancing Oil Markets

Gavin Wendt
Gavin Wendt MineLife

Despite the skeptics, OPEC is doing exactly what it said it would do – which was to dramatically rein in oil production. Global oil output plunged during January as OPEC and non-OPEC producers curbed supply to accelerate a market rebalancing, according to the International Energy Agency (IEA). Oil supplies fell... Show More

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