It was a quiet week this week as Victorians enjoyed the Spring Racing Carnival. Next week promises to be anything but quiet with the much anticipated US presidential election. This time next week we'll be talking about either President-elect Trump or President-elect Clinton... A scary thought. In the meantime, Shane Oliver tells you what you need to know about the US election, five fund managers share how they filter stocks, and Daniel Mueller might’ve spotted the next private equity blow-up. Here are three things you should read this weekend.

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Investment implications of the US election

The US election is looming large over the share market currently, with investors on both sides of politics looking hesitant in the lead-up. The latest ‘Now-cast’ from (VIEW LINK) Trump's chances of winning have risen to 34.5% from around 9% just a few weeks ago. With so much riding on the outcome, Shane Oliver, Chief Economist at AMP Capital, has covered all the key points for investors to consider.  (VIEW LINK)


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5 ways to filter stock ideas

Few (if any) investors have time to be wasted analysing stocks that are unlikely to ultimately form a part of their portfolio. Spending just 15 minutes analysing each of the stocks in the official ASX list, working eight hours per day, five days per week, it’d take about three months to finish the list. Such a task is obviously unachievable, so finding a way to narrow the list is essential. We recently reached out to five contributors for insights into how they filter through ideas to ensure they spend their time on the best ones.  (VIEW LINK)

Will Ingham’s be the next Dick Smith?

After a number of high-profile private equity blow-ups in recent years (Dick Smith, Spotless, Myer, et al.), investors are understandably sceptical about these offers. While there are no doubt a plethora of differences between Ingham’s and Dick Smith, these cosmetic similarities catch investors’ attention. Forager Funds’ Daniel Mueller sees a lot of differences, but that doesn’t make it an attractive investment. In the article below, he explains why valuation and a lack of pricing power have kept them away from this float.  (VIEW LINK)

Chart of the week

Global manufacturing starts to pick up

Purchasing Managers Indexes (PMIs) around the world have been picking up in recent months. These indexes are an important gauge of the health of manufacturing and are seen as a leading indicator for GDP.

Manufacturing PMI.png

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