To cut or not cut? That is the question facing the National Australia Bank (NAB) Board. Just over a week ago, NAB announced another customer remediation provision, this time a whopping $749 million before tax for 1H19. Unsurprisingly, NAB announced a review of its dividend settings. We wrote about the looming risk of a NAB […]
The most talked about harbinger of a recession is the inverted yield curve. Google trends show recent internet searches on “inverted yield curve recession” have reached a fever pitch. Source: Google trends It is interesting to note that in February 2005 the same search terms also reached extreme levels. Yes, a global recession did occur […]
JASON TEH | It’s obvious. Retirees need income. With cash and fixed interest offering low yields, equities are a good place to look for income. On the surface, it may seem easy creating an income portfolio from shares – just select stocks from a list of high dividend yielders. However, setting up an income portfolio […]
JASON TEH | 2018 was the year of living dangerously as far as the stock market was concerned. The year began with a bang, cheered on by the global growth squad. However, unbridled risk taking eventually led to negative returns later in the year. Most equity indices around the globe delivered negative returns for 2018 […]
TRENT CRAWLEY | There’s no better feeling than receiving a cheque from the tax man. But with Labor likely to win the next federal election, fewer cheques will be posted by the ATO. Will companies sitting on large franking balances rush out and try to beat the impending changes to the imputation system? Companies can […]
JASON TEH | The market corrections in February and October should be a warning to investors that the stock market is highly cyclical. It was inevitable that ‘growth’ stocks, which pushed the market to new highs for many months eventually led the collapse. Investors who paid heed to Howard Marks’ famous quote on cycles would […]
DANIEL MUELLER | In a matter of weeks, Wesfarmers’ demerger of Coles will be complete. Coles will be listed as a stand-alone business for the first time in 11 years. You may think that both Coles and Woolworths have similar risks given that they operate in the same industry. However, a deep dive into the […]
JASON TEH | We all know the story of Cinderella. Transformed into a glamorous princess, she was the belle at the ball. However, the celebration abruptly stopped at midnight, when her gown turned back into rags and her coach turned into a rotten pumpkin. Growth stocks are sometimes like Cinderella, glamourous companies that can have […]
JASON TEH | What a difference a year makes. This time last year, the stock market was cheering the global synchronised growth story. Now, it is downbeat, fixated on tariff wars that could derail global growth, especially China. In our view, the tariff war is a side show to what is happening in China. The […]
LIVEWIRE | JASON TEH While the Australian share market contains numerous companies that pass the first three filters, finding a stock with a sensible price tag has become increasingly challenging. However, Amcor passes all four of Buffet’s filters: Understandable business Amcor is relatively straightforward business, supplying packaging and containers globally for defensive end markets such […]
