Three wires that caught my eye

Patrick Poke

Livewire Markets

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Quintessentials: The continuing search for yield

Yield plays have sold off as bond yields have risen in recent weeks and months, offering an opportunity for income-hungry equity investors to pick up these names at a higher yield. However, despite the sell-off, Peter Quinton from Bell Potter points out that the overall yield of the Australian market remains slightly below long-term averages. Add in those sweet franking credits though, and the yield on offer is more than double that of bonds, term deposits, and bank bills. In this timely update, Quinton sets out which 12 stocks currently meet his criteria.  (VIEW LINK)

Three big tests ahead for Europe and financial markets

Tomorrow, on Sunday 4 December, Italy goes to the polls for what could potentially be a turning point for the Eurozone. The referendum seeks to make changes to Italy’s legislative process, but more importantly, Prime Minister Matteo Renzi has pledged to resign if the referendum fails.  While other Eurozone countries such as Spain have survived with no Prime Minister, Italy faces an imminent banking crisis that requires the full attention of the state. The political gridlock that could lie ahead does not bode well for Italy’s banks. Miles Staude from the Global Value Fund has laid out all the key things investors need to know in the lead up to these important votes.  (VIEW LINK)

Will Amazon Destroy Australian Retailing?

In a story that no doubt sent shivers down the spine of local retailers and their shareholders, Justin Braitling from Watermark Funds told the AFR that Amazon was poised to “destroy” Australian retailers with the introduction of fresh food to their Australian offering. Daniel Mueller from Forager Funds is not convinced. In this short article, he sets out why Amazon might not pose quite the threat to retailers that the media would have you believe.  (VIEW LINK)

Chart of the week

CapEx falls off a cliff

As residential construction slows, a massive fall in building investment (-26.2% y-o-y) has driven Australian private CapEx to new lows.

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Patrick Poke
Patrick Poke
Managing Editor
Livewire Markets

Patrick was one of Livewire’s first employees, joining in 2015 after nearly a decade working in insurance, superannuation, and retail banking. He is passionate about investing, with a particular interest in Australian small-caps.


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