Who are the businesses of the future?
In football, a successful player does not run to where the ball was, or where it is right now. They run to where the ball is going to be. The same idea is followed by successful investors. They are typically less interested in the successful businesses of yesteryear, or even today’s success stories. For successful […]
Are there cracks in the U.S. auto industry?
The U.S. auto market has experienced a strong resurgence since the Great Recession. The seasonally adjusted annual rate (SAAR) of U.S. auto sales has gone from around 9 million units in the depths of 2009, to above 18 million units in December 2016. However, this strong growth in auto sales in recent years has coincided […]
Does the “new normal” call for active management?
For years now, there has been an almost-structural increase in the amount of capital allocated to passive equity index funds; and a corresponding decrease in the amount allocated to active equity funds. The rationale has been simple: passive funds are typically much lower cost and their returns have outperformed most active funds over recent years. […]
Will our debts keep rates low?
How to make sense of the strange new financial world in which we find ourselves? It is a seriously challenging question. There is currently around US$15 trillion of negatively yielding government bonds in the marketplace. Furthermore, some corporates have started issuing debt at negative yields (as shown below). This is unprecedented. With yields in global […]
How do your stocks rate in a low rate world?
Here’s the deal: you lend me $100. I pay you back $100 in the year 2066 with no interest in between. Does that sound fair? Would you take that deal? Well that’s what the Swiss government is currently offering – and many investors are taking it. We are living in a very strange and unprecedented […]
Would an American invest in an Australian bank?
In this column published in the Herald Sun, Andrew Macken compares American and Australian banks. How many American investors do you think are piling into Australian banks right now? Read here.
Why We’re Bullish on U.S. Healthcare
The affordability of U.S. healthcare frequently makes headlines in the news, and for a good reason. In 2013, the U.S. spent an incredible 17.4% of GDP on healthcare, the highest among high income nations. The issues for many Americans requiring healthcare are two-fold: affordability and access. Healthcare costs in the U.S. have become unaffordable for […]
Is the iron ore price rally sustainable?
Since late last year, the iron ore price has rallied by more than 50%, increasing from less than $40/tonne to approximately $60/tonne today. It has coincided with renewed optimism (by some) over a return to the credit-fueled fixed-asset-investment-led growth model that has characterized China over the last decade. Should Chinese policymakers instruct their banks to […]
U.S. Trucking Industry Running on Empty
The trucking industry has typically been thought of as a bellwether for the health of the American economy; increases in consumer and industrial demand result in a greater need to move raw materials and finished goods across the U.S. With that said, the current state of the U.S. trucking industry has mixed implications for the […]
Toning down the Big Aussie Short
Characterizing anything as a “big short” these days is a great way to turn heads. Following the success of last year’s Academy Award-winning movie, The Big Short – starring the likes of Christian Bale and Brad Pitt, everyone seems to be looking for the next “big short”. The movie was as entertaining as it was […]
