Most people’s experience of artificial intelligence has been the chatbot: ask a question, get an answer. That use is still growing. What is changing—and what matters for Contrarius’ Funds—is the next layer of demand.
Most people’s experience of artificial intelligence has been the chatbot: ask a question, get an answer. That use is still growing. What is changing—and what matters for Contrarius’ Funds—is the next layer of demand.
As contrarian investors, we often find ourselves in unloved areas of the market. Eighteen months ago, lithium miners fell squarely into the ‘unloved’ category. In fact, it would have been difficult to find a more out-of-favour area of the market at the time.
Every loss in Australian private credit seems to be reported as a failure of the asset class. We think that is misleading, and it does little to help investors understand the risk-reward proposition they are actually signing up for
Investment decisions tend to attract attention when they involve buying something. Deciding against an investment is less conspicuous. A well-reasoned “no” rarely provides much material for the fund highlights.
Australian investors have spent three years facing an expensive global equity market, and a local one too concentrated in banks and miners to share fully in the technology boom.
Elon Musk predicts money will become irrelevant by 2036 as AI and robots produce more than humans can consume. Most analysts doubt it, but the investment implications hold whether he is right or wrong, particularly for Australian investors whose home market is light on the companies driving the shift.
Older Australians, like their counterparts in most developed markets, are travelling more often, staying longer and spending more when they arrive. It’s one of the more visible investment themes in the world today.
Choosing active means you have the goal of outperforming the market in some form. Perhaps it is about achieving higher income. Perhaps higher overall growth. Or it might be about lower volatility to ensure stability of returns. All this typically comes at a higher cost, but are you getting what you are paying for or have you invested in an index-hugger with a good marketing package?