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The vibe of future returns: tell ‘em they’re dreamin’

Reading Time: 6 minutes

In the iconic Australian film, The Castle, the family lawyer, Dennis Denuto, is struggling to make his case in court, bumbling around with a copy of the Australian Constitution. Finally, he sums up in a segment that has both entered Australian folklore and become required viewing for law students:

“It’s the vibe of it … It’s the Constitution. It’s Mabo. It’s justice. It’s law. It’s the vibe and … ah, no, that’s it. It’s the vibe. I rest my case.”

Six simple charts on what to expect from shares

Reading Time: 4 minutes

In our recent Reader Survey, about 40% of respondents reported portfolio losses of over 20% between January and March 2020, although the market rise since the lows has pared back some of the pain. Anyone relying on their investments to fund regular spending will not only be concerned about the loss in capital value, but also the reductions in dividends. National Bank has lowered its interim dividend from 83 cents to 30 cents and ANZ Bank has cancelled it completely in a sector which traditionally provides one-third of all dividends in the listed market.

The Battle for Consumer Attention

Reading Time: 4 minutes

By Baillie Gifford, the investment manager of the Vanguard Active Global Growth Fund

Baillie Gifford’s Research Agenda, which is updated annually, provides a framework to help guide the hunt for unrecognised growth opportunities and where the existing portfolio requires the greatest scrutiny to keep the portfolio fresh and full of future potential. In 2020, companies offering digital services to consumers are on this agenda.

Why losing less is so important

  • Willard Lloyd
  • April 6, 2020
Reading Time: 3 minutes

Compounding is an extremely effective investing tool, says Morningstar Investment Management’s Head of Institutional Portfolio Management and Solutions, Jody Fitzgerald, but it’s important to be aware of its inverse power on the downside.

Staying the Course Versus Timing the Market

Reading Time: 4 minutes

Key Takeaways

  • As the saying goes, time in the market is generally superior to timing the market. Yet, investors tend to have a bad habit of buying winners too late and selling poor investments too soon.
  • Staying the course does not necessarily mean sitting still. It means avoiding bad behaviour, remembering your goal and ensuring your approach is applied with discipline.

From trade wars to Brexit, and now the dramatic implications of coronavirus, we’ve had plenty to deal with. So, what do we mean by “staying the course”? It’s not always about sitting still, but rather, to focus on the goal that you set in the first place and ensure your behaviours align with it.

How the stock market has recovered after past downturns

  • Willard Lloyd
  • March 2, 2020
Reading Time: 3 minutes

When investing, it’s important to keep the big picture in mind. Even after a 10% drop last week, the ASX 200 Total Returns Index is still up 113% over the past 10 years.

However, we know it is difficult when it’s your own money, and seeing the big picture is not always easy as your goals may not be long term.

When stock prices are plunging over a matter of days, it can test anyone’s resolve. But periods of turbulence can be good for long-term investors. For long term investors, sometimes the best advice is: “Buy stocks.”

Hold on… bumpy markets ahead

  • Willard Lloyd
  • March 2, 2020
Reading Time: 3 minutes

After a period of optimism, global investment markets have hit the panic button on fears about the possible economic impact of the coronavirus (COVID-19). 

At times like these, it’s good to get some perspective.

Australian shares rose 24 per cent last year, touching record highs, and 10 per cent a year over the past seven years. Global shares rose 28 per cent last year and 17 per cent over the past seven years.i After such a good run, many observers have been saying shares were looking fully valued and that a correction was likely.

The thing with market corrections is that it is impossible to predict what will trigger them or how long and severe they will be.

Roller-coaster of emotions within Investing

  • Willard Lloyd
  • February 11, 2020
Reading Time: 4 minutes

short-sighted or blindsided…rollercoaster of emotions…and more…

A 330% return in eight months.

Sounds impressive, doesn’t it?

It’s the kind of short-term gain that every investor dreams of. But it’s not the kind of return that’s easy to achieve.

Typically you’d have to rely on a very tiny stock for an explosive result like this. Companies that have plenty of upside potential due to their diminutive market caps.

But that’s not the case for my example above. Rather, that 330% return came from a multi-billion NASDAQ stock. A very divisive stock at that…

It was Tesla Inc [NASDAQ:TSLA].

2020 economic and market outlook: The new age of uncertainty

  • Willard Lloyd
  • February 5, 2020
Reading Time: 2 minutes

Ongoing geopolitical tensions, overshadowed by the US-China trade war and Brexit, are expected to stunt global economic growth in 2020.

Weaker global growth will have a flow-on to investment markets, fuelling further periodic bouts of volatility, and investors should factor in the likelihood of subdued returns.