Are dividend yields sustainable?

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With declining bank term deposit rates, there has been increasing interest in dividend yields as a source of income for investors. But how do you determine how sustainable dividend yields are? “It is a straightforward process to screen for high-yielding stocks and build a portfolio around them,” says Tom Stevenson, Investment Director at Fidelity Worldwide […]

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Are bonds in a bubble?

Outside of the troubled countries in Europe, government bond yields in developed countries have fallen to generational and in some cases record lows. Reflecting the capital gains that are generated when bond yields fall, returns from bonds have been very strong. Over the last year global bonds returned 11.1% and Australian bonds returned 11.4%. Over […]

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Challenging times for small cap IPO market

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Small cap companies continued to provide the majority of initial public offering (IPO) activity in 2011, with an increased number listing during the year compared to the last three years.  However the funds raised were down on previous years, according to the latest HLB Mann Judd Small Cap IPO Watch – click here  to read […]

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Equities good value but markets will probably underestimate the risks again

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Equities remain at attractive valuations, though not outstandingly so, but markets are almost certainly underestimating the risks to markets this year as they did in 2011, van Eyk Head of Research John O’Brien said. Mr O’Brien noted the ASX 200 was trading on 11 times forward earnings, the MSCI World index on 12 times forward […]

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Global and emerging market outlooks for 2012

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What is the outlook for global versus emerging markets? Amit Lodha, Portfolio Manager of the Fidelity Global Equities Fund – “I expect global economic growth to remain muted in 2012, with a continued and marked divergence between developed world and emerging market growth. The sovereign debt issues in the eurozone are far from resolved and […]

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Outlook for Australian money market rates

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2011 saw a dramatic change in how the Australian market reacted to a crisis overseas. This is nowhere more evident than in the reaction of the Australian dollar (AUD) says Roger Bridges, Head of Fixed Income at Tyndall AM. Historically, any hint of a crisis or funding problem saw the AUD fall due to our […]

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Friday 13th…should investors be nervous?

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Over the past 15 times that the 13th has occurred on a Friday, the Dow Jones has fallen 7 times and the All Ordinaries has fallen 5 times. So on balance, superstitious for some, but not a major consideration for most investors.

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What’s the best asset allocation for 2012?

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We are experiencing a second round of the global financial crisis, says Trevor Greetham, Director of Asset Allocation at Fidelity Worldwide Investment. The first round was caused when banks and other highly leveraged financial institutions could not be certain of the value of complex financial instruments linked to sub-prime US housing obligations. This second round […]

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What do the world’s CEOs think is ahead for 2012?

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A recent Fidelity Worldwide Investment survey of CEOs of global companies found they are most concerned about government intervention and intrusive regulation; moreso than inflation, wage costs, pricing issues or even their own balance sheets. Government interference in the free market for goods and services is running higher than usual now due to governments’ new […]

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Outlook for fixed income 2012

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The eurozone sovereign bond crisis is playing out at an alarming pace as markets attempt to periodically force the hand of policymakers. “This is a pattern that is likely to remain in force for the early part of 2012 as markets continue to test any perceived weakness in the authorities’ preparedness to act,” suggests Andrew […]

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