Pressures mount as Wesfarmers, CBA deliver bumper earnings
A higher net interest margin drove a 10 per cent increase in CBA’s net profit after tax, while Wesfarmers benefited from a strong performance by Kmart Group and the chemicals division. But with much of the upside for these companies already priced in, investors should be clear about valuations before buying in.
Why this fundie thinks Transurban is attractive
Increased traffic volumes and higher earnings have provided valuation support for the infrastructure company, ClearBridge Investments’ Shane Hurst says, with the post-COVID-19 recovery positioning the business for solid growth.
Adani attack puts focus on valuation concerns – and activists’ motives
An explosive report by activist short seller Hindenburg Research led Adani Group to shelve a planned US$2.5 billion equity sale and wiped $120 billion from the multinational conglomerate’s market value. While activist short reports should be taken with a grain of salt, market observers said, some of Hindenburg’s key claims are likely valid – including that Adani was vastly overpriced.
China on a bull run, but can it last?
Markets have moved sharply to reprice Chinese assets upwards after the world’s second-largest economy signalled its reopening. However, some doubt the sustainability of the current bull market, saying key ingredients for a lasting recovery are missing.
Big four set for strong year as profits jump amid wild share price swings
Analysts agree Australia’s big four banks are entering 2023 from a position of strength as they pass on rising interest rates to borrowers. Headwinds remain, however, and the total return picture for shareholders looks more complex.
The best and worst ETFs from 2022
Exchange-traded funds continued to attract inflows from investors in 2022, albeit at a slower pace thanks to rising interest rates and market volatility. Resources and mining-focused funds were clear standouts in a challenging year.
Australian executives optimistic despite recession fears
A recent survey shows 74 per cent of Australian business leaders expect profits to increase in the year ahead, despite a still-challenging outlook and sticky inflation.
Fixed income the consensus trade of 2023 as investors get defensive
This year’s recalibration of bond prices now reflects the higher interest rate environment, making future returns attractive again for fixed income in 2023 as deteriorating fundamentals threaten other asset classes.
Forecasts see 2023 house prices at the mercy of RBA policy
Economists agree the outlook for house prices in 2023 is largely dependent on upcoming interest rate decisions by the Reserve Bank of Australia, and signs of weakness are already appearing. Complicating matters further, borrowers face an impending fixed-rate cliff.
China’s economy faces bumpy path before 2023 rebound
The Chinese government’s announcement of less onerous isolation guidelines prompted markets to rally in anticipating of a move away from zero-COVID policies. While significant short-term challenges remain, market sources say renewed growth may be in sight, representing future opportunity.
To escape Pendal merger, Perpetual will have to pay
The NSW Supreme Court on Thursday ruled Perpetual would be on the hook for more than just a $23 million break fee should it abandon its bid to takeover rival fund manager Pendal Group, likely scuttling recent advances by a Regal Partners-led consortium for Perpetual itself.
FTX collapse shatters trust in cryptocurrency
The collapse of the fifth largest cryptocurrency exchange, joining a growing list of crypto casualties this year, has raised serious doubts about the asset class. Observers say more rigorous oversight is coming.
Cybersecurity: Risk or opportunity for investors?
7investing lead adviser Anirban Mahanti says companies have been thwarting cyber threats for a long time. However, as data moves to the cloud, systems have failed to keep up.
Passive funds still reign supreme despite market turbulation
The pendulum may have swung back towards active management this year, but the domestic ETF market is flush with options and continues to steal FUM.
How to reduce your investment carbon footprint
Moving to a sustainable investment portfolio can reduce an individual’s carbon emissions by 90 per cent, research from Stockspot has shown.
Australian dollar weakens on global recession fears
Powerful forces are spooking global economies and pushing investors into safe haven assets like US dollars and US treasuries, and in turn flattening the relative value of our domestic currency.
Senior secured debt reaps rewards in inflationary environment
One part of the market that is benefitting from inflation and interest rate increases is private debt; senior secured loans, in particular, have returned 4.8 per cent over the past two years.
Client promoter scores linked to heady investment returns
Companies that win the advocacy of their clients have a remarkable ability to increase their own value according to research from the people who invented net promoter scores.
Record global debt spawns ruptures in financial markets
Our record US$350 trillion global debt – the equivalent of 3.5x global GDP – has “tentacles across the world”, says Simplicity author Danielle Ecuyer. Tightening financial conditions further will have significant consequences.
More upside predicted for ASX-listed thermal coal companies
Three of the top four performing companies in the S&P/ASX 100 over the past year operate thermal coal mines, which points to remarkable structural imbalance in the market.
Financial stress underlines need for better advice model
Many have seen the value of their superannuation, property and share portfolios fall over the past six months, which has only highlighted the need for quality advice.
Interest rate hikes won’t be felt until December
Higher rates are leading to property prices rolling over and investors rushing for the exits. As ever, though, in times of pressure loan serviceability remains key.
Earnings season: ASX profits boomed by 56pc
A dramatic reporting season saw over 40 per cent of companies surprise to the upside, less than 30 per cent disappoint and a third fall in line with expectations.
Navigating volatility worth the prize
With so much negativity circling, one would assume that the market is likely heading lower or treading water at best. Wrong.
Reporting Wrap: CSL, Redbubble & Magellan
Earnings season is in full swing, with companies providing results from FY22 and outlooks for the year ahead. Here we summarise recent results of three popular ASX shares.
What are McDonald’s, Google and LVMH telling us about the economy?
Some of the world’s biggest companies including Mcdonald’s, Alphabet and LVMH released quarterly earnings last week. Here are four takeaways for investors.
BofA fund manager survey suggests markets could bounce">
BofA fund manager survey suggests markets could bounce
Chief Strategist Michael Hartnett at Bank of America (BofA) comically titled the July fund manager survey “I’m so bearish I’m bullish”.
Consumer, business confidence sink as inflation bites
Tuesday provided a dour outlook for the Australian economy as inflation continues to dent consumer and business confidence.
Ray Dalio: “Reducing Inflation Will Come at a Great Cost”
Legendary investor Ray Dalio has warned against believing all will be well if central banks simply increase interest rates to get inflation under control.
Here’s how private equity is conquering the ASX
Private equity is eating the ASX alive. Nearly every other month there is another billionaire dollar private equity approach of an ASX company.