Inflation and interest rates: We are not the US

By reading any of the mainstream financial press across the past twelve months you would have undoubtedly heard that interest rate rises were important, nay, essential, for lowering persistently high inflation.  Afterall, consumer prices have been rising rapidly, and as conventional wisdom suggests, the way to reign in prices is through lifting interest rates. However, … Read more

You may be overpaying for international share trading

Many trading platforms advertise low brokerage fees for US or internationally listed shares, but they may be hiding large currency conversion fees. Plenty of retail investors are getting enticed into trading platforms offering trading in international shares for supposedly cheap brokerage rates. You can find plenty of advertised rates for trading US listed shares at … Read more

The Bull Market in Metals Prices

Industrial Metals prices are trading at all-time highs at the moment, which would have been unbelievable just twelve months ago. A combination of large amounts of government stimulus, as well as expansionary monetary policy has helped to fuel these record prices, but monetary and fiscal policy alone does not explain what we are seeing. What … Read more

Australia’s China Hustle

Several large Chinese operations have listed on the ASX across the past five years, usually with impressive financials and promises of strong, consistent, future growth. These companies have always been attractively priced and always seemed to report extremely well. What was the problem? Well, put simply, some of these companies may not exist at all, … Read more

The market loves a spin-off

Recently Iluka Resources spun-off their Deterra Royalties business. Deterra earns a royalty on iron ore mining in Mining Area C, located in the Pilbara of Western Australia, as well as some other royalties. To the surprise of few, Iluka Resources and Deterra Royalties now have a combined value far higher than when the two businesses … Read more

Is this the beginning of the end?

Back in January I wrote that rising longer-term bond yields could eventually become a threat to share prices. This prediction was accurate but also inevitable, with expectations of an economic recovery, it was likely that bond yields would rise, and with rising yields, the stocks trading at the highest levels would be threatened. So, is … Read more

2021 – The year of value?

For years so called value stocks have under-performed high flying growth stocks. Part of this is historical, the best performing stocks since the GFC have been high-growth, high-cost tech stocks; this has instilled a preference for these shares in the minds of investors. However, many high-growth stocks are trading at valuations that are at illogical … Read more

Miners remain some of the best value on the ASX

Traditionally, the world of investing can be broken down into value and growth stocks. Growth stocks tend to enjoy strong growth in at least revenues, but sometimes profits and other metrics as well. Value stocks are considered as such, because they tend to be cheaper; that doesn’t necessarily mean that each share is trading at … Read more

Rumours of retail’s demise have been greatly exaggerated

For many years we have heard that global giants were poised to decimate the Australian retail landscape, that Amazon’s introduction to the country would spell doom for those Australian businesses still foolish enough to sell consumer goods. And yet today, after the greatest underlying hit to the Australian economy of the past decade, many Australian … Read more