Investor Education Articles

The banking sector enjoyed an extraordinary rally in 2024, with the Big Four Banks delivering an average TSR of 33%. As recently as February, Commonwealth Bank (CBA), for instance, enjoyed a price to earnings multiple of 26x- a 60% premium to its historical average. This raises an important question: are these valuations justified for a sector that has not grown its overall earnings per share over the last 10 years?

Investing is often seen as a game of numbers, charts, and cold, hard logic. Except, in practice, that’s not how it works for most investors. More often than not, investment decisions are driven by emotions, biases, and mental shortcuts. As Benjamin Graham puts it: ‘The investor’s chief problem—and even his worst enemy—is likely to be himself.’

What if I told you of an investment sector in which you could pay 80-90 cents for each dollar worth of assets? Welcome to the current state of affairs in the Listed Investment Companies (LICs) and Listed Investment Trusts (LITs) sector. The question is: do these discounts represent an opportunity worth pursuing, or a risk worth avoiding?

Semiconductors are the essential components powering a vast array of electronic devices we use daily. Investment Analyst Adrian Lu explains how the semiconductor industry has experienced rapid growth and is set to continue expanding. Adrian highlights the industry’s robust outlook and discusses DeepSeek’s innovative entrance into the sector, which has made AI models cheaper and more efficient to build and run. He also provides insights on TSMC, a high-quality company that stands out as a key player in the sector due to its unique role in the semiconductor value chain.

The US energy landscape is being reshaped by the growing influence of AI, data centres, and the return of manufacturing. As energy demand soars, a diverse mix of energy sources, including nuclear power, natural gas and renewables, is shaping the landscape. Investment Analyst Fiona Wu delves into this dynamic environment, highlighting the exciting investment opportunities it presents, particularly for regulated utilities. She also provides insights into the companies that are effectively capturing this demand and expanding their operations.

If you are reading this, chances are you don’t have a financial adviser. You are not alone. Only 10.4% of Australians work with one, while the majority manage their finances independently, often taking a DIY approach to investing, tax planning, superannuation, and retirement.

When we wrote a few weeks ago about a potential Volmageddon event brewing, it was hard to know what that meant beyond higher volatility and falling markets.

A secure and stress-free retirement isn’t just the result of how much you save—it’s about how well you invest and manage those savings when the time comes. If you’re approaching retirement, having a well-planned strategy for your SMSF is crucial.

Most investors dream of achieving financial independence. The prospect of controlling your own time, being free to live life on your terms, and reclaiming money’s control over your life are powerful incentives.

Have you recently inherited wealth—or expect to? If so, you’re probably wondering: what’s the smartest way to use this money? An inheritance can be a game-changer for your financial future. It has the potential to create long-term security, grow your wealth, and even provide for future generations. But without a clear strategy, it can disappear faster than expected. Studies show that 70% of intergenerational wealth transfers fail—not because of bad luck, but because of rushed decisions, emotional spending, and poor planning.

Do you want a simple financial wellness win that’s likely to dramatically improve your quality of life?

The financial landscape is changing at an unprecedented pace, making it more critical than ever for Australian investors to have a solid investment plan. Over the past year, major forces such as AI-driven tech optimism and geopolitical uncertainty have reshaped global markets.