Each profit reporting season CommSec tracks all the earnings results of ASX 200 companies to obtain a comprehensive picture of the aggregate health of Corporate Australia. It’s clear that the company profit-reporting season wasn’t as bad as feared. Companies under promised and over delivered – an old strategy that continues to work. CommSec has assessed [...]
continue readingAustralia’s strong economic position post the financial crisis has generated positive returns for investors during the past 12 months however, headwinds in 2013 will mean lower returns for investors with too much home bias, according to BlackRock’s Global Chief Investment Strategist, Russ Koesterich. Visiting Sydney and Melbourne this week, from San Francisco, Mr Koesterich said [...]
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The 2012 financial reporting season was not as bad as some investors had feared with investor’s expectations having been largely reset, according to the Goldman Sachs Asset Management Australian Equities team. Despite an encouraging valuation level for the broader market, the team believes in a targeted approach given the uncertainty that exists locally and globally. [...]
continue readingThe post-GFC credit cycle has seen a reversal of fortune for companies with low levels of gearing and organic growth, according to Australian equities fund manager, Hyperion Asset Management. Mark Arnold, Hyperion’s Chief Investment Officer, believes these companies now have a strong long-term return advantage because they can grow revenues, profits and dividends at attractive [...]
continue readingA desire by Australian investors to mitigate risk has seen a pile-up of funds sitting in cash. Rates on cash are higher in Australia than in many OECD countries and it has looked like a safe haven from equity volatility. But is having all your eggs in one basket really a risk-off strategy? Most definitely [...]
continue readingThere are two aspects to the European debt crisis that investors need to consider, says Paul Taylor, Head of Australian Equities at Fidelity Worldwide Investment. Mr Taylor says “the first is a crisis of confidence associated with the possible breakup of the European Union and the Euro as a currency. From an investment perspective the [...]
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May
2012
The Australian market retreated 15% in mid-2010 and 20% in mid-2011, predominantly on European issues. So far the Australian market is down 9% in May. Is this a case of here we go again? Lonsec’s Head of Equity Research, Bill Keenan, commented, “While Australia has low direct exposure to Europe, it will still be indirectly [...]
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May
2012
Lonsec’s Head of Equity Research, Bill Keenan, believes the Australian equity market is ready to rebound. “Lonsec has had a target of 5,000 for the All Ordinaries Index by the end of calendar year 2012,” said Keenan. “I believe yesterday’s rate cut by the RBA will fuel this.” “History shows that a period of successive [...]
continue readingWhile people are concerned about Australia being a two speed economy that actually part of its strength. So when eventually the strong contribution of growth coming from the mining sector starts to fade there are other sectors of the market that will start to do better. That’s a key positive for our market; a lot [...]
continue readingThere has recently been much debate about whether Australian super funds have too much in shares and not enough in bonds. The basic argument is that compared to other major countries Australian pension funds have a higher share allocation and a lower bond allocation and that this leaves members exposed should shares plunge. And after [...]
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