Are stock valuations naturally biased upwards?
Conventional wisdom and historical evidence support the observation that “stock prices always go up over time”. On a long enough timeline, stock returns of substantially all developed countries have been positive, driven by inflation and real GDP growth if nothing else. Businesses are created and fail, and individual stocks enter and exit market indices all […]
China’s Censorship Anaconda Awakens
US companies and executives are increasingly taking strong stances on local policy matters such as health care and gun control; however, until recently they had largely avoided scrutinising China’s position on free speech and human rights. As the Hong Kong protests enter their twentieth week, US businesses across a range of industries have found themselves […]
In the Midst of an Historic Reallocation?
Over the last 12 months we have borne witness to one of the most significant portfolio reallocations of modern times. Investors have sold ~US$250bn of global equity funds and bought ~US$780bn of bond funds (inc money market). Looking at the difference between equity and bond flows (i.e. equity flows minus bonds flows), implies over US$1 […]
Should the Australian government actually be increasing its debt?
As news is emerging that Australian Treasurer, Josh Frydenberg, will soon deliver a balanced budget for the first time since the GFC, one needs to ask if this is even appropriate today. While surpluses are prudent and allow for protection against future downturns, the logical time to build government surpluses is when growth is strong […]
Our take on the current market volatility
Commsec’s Tom Piotrowski interviews our Chief Investment Officer, Andrew Macken, about the current market volatility. Andrew shares his analysis of the current economic scenario in the wake of Brexit, US-China relations and various other macro economic factors. Have a look at the video now to gain some valuable insights by clicking here.
Complete Rubbish: The Fascinating World of Waste
As we delve deeper into the cycle it is worth considering businesses that are less reliant upon a strong economic backdrop and don’t need buoyant conditions to thrive. Such companies are sometimes referred to as ‘defensive’ names. However, as we have explored several times on this blog in the past, traditional ‘defensive’ names can contain […]
Aussie property bulls are back
Over recent weeks, we have observed a wave of activity in the major Australian property markets that suggest the recent downturn may well be over. At the heart of the apparent resurgence, as is usually the case, is: policy, policy and more policy. First on the monetary side of things, policy from the Reserve Bank […]
Sorry to Burst Your (Healthcare) Bubble
While many lament the sad state of the U.S. healthcare system, with U.S. healthcare expenditure being multiples of other developed nations on a per capita basis, attempts to reign in this inflating healthcare expenditure have been ineffective, with the gap widening between U.S. healthcare spending and that of other comparable countries. However, there are a […]
Digging Deeper into Iron Ore
While there is no physical shortage of iron ore on earth (fourth most abundant element on the planet), from time to time markets forget this overarching fact and in response to transient supply disruptions, can materially distort price levels of the commodity. The current iron ore market exhibits such characteristics visible from the price of […]
A Deep Dive into Chinese Cemeteries
The Montaka team has recently done some research on the Chinese death care industry. Clearly a unique space both as an investment opportunity and otherwise, I thought our insights might be novel and interesting for our readers. The industry is underpinned by a deep connection to China’s cultural history, with traditional funeral processes such as […]
