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Does the acronym AGI inspire the same mix of excitement and terror in you as AI does? Probably not, but that may change soon. AGI stands for Artificial General Intelligence. The difference between AI and AGI is that Artificial General Intelligence is at least as good as human intelligence for a wide range of tasks that require intelligence. According Sam Altman, the CEO of OpenAI, AGI is coming this year which means that, for the first time in history, ‘computers will be able to automate the great majority of intellectual labour’. In other words, many of us were right to worry that artificial intelligence is indeed coming for our jobs. The ramifications are also significant for investors…

Many investors lack the time, expertise, or desire to manage their stock portfolios, making actively managed equity funds an easy and practical solution. Unlike passive funds, which simply track the market, active equity funds employ stock-picking and strategic adjustments to target objectives like growth, income, or diversification. This active approach allows fund managers to capitalise on market opportunities and adapt to changing conditions.

It’s fair to say the S&P 500 has led global markets up a wall of worry over the past couple of years. But the S&P 500’s gradual grind higher evolved into full on market euphoria when Trump won the US election so convincingly. We all know that market euphoria tends to end in tears. The dot-com bubble was a memorable example. With those memories in mind, it’s worth asking the question: are US/global markets too bullish?

With the Fed initiating a rate cutting cycle in September, investors are increasingly focusing on asset classes positioned to outperform in a falling rate environment. Enter smaller companies. Historically, small-cap stocks have outperformed their larger counterparts during periods of declining interest rates — and this trend seems to be taking hold as both global and domestic small-cap benchmarks have shown improved performance in recent months.

With ‘brain drain’ increasingly being the name of the game in the publicly listed markets, not to mention the ever present pull of the US market for innovative emerging Australian businesses in the need of capital, it’s hard to ignore the growing role of private equity and direct start-up investing in most investors’ portfolios. It’s also hard to ignore the fact that start-up investing entails its own unique risks. Many investors have been wrong-footed by the marked differences of start-up investing versus investing in publicly listed companies. The good news is with the right strategy it’s possible to invest in a portfolio of start-ups without losing your shirt.

In recent years, emerging markets haven’t exactly been a sure-fire opportunity for investors. Many have retreated after a decade of flat earnings, turbulence in China, and more attractive returns from the US exposure, resulting in emerging markets trading at lower valuations than their developed market counterparts.

Welcome to the match. It’s time for a showdown between the green and gold of the Australian equity market and the red, white, and blue of the American stock market. Both countries are fierce competitors with successful track long term records so we can expect a hard-fought match. We’ll assess our competitors based on three key factors: 1) historical performance, 2) EPS growth, and 3) valuations. It’s fine to cheer for your team during the match, but please keep it respectful.

Active fund management has long provided investors with easy access to professional management expertise across a range of asset classes. With equity markets reaching high valuations driven by tech stocks, stock picking has arguably become more important than ever. So it may be an ideal time to increase your exposure to active funds with the stock picking expertise required to navigate what’s coming next in financial markets.

While long-term investing is often touted as the key to success in the stock market, there’s a body of evidence that challenges the idea. Even Warren Buffett, who championed the 'forever' investing style, has occasionally betrayed his advice. Research shows that out of 230 stocks held by Berkshire Hathaway between 1980 and 2006, 60% were owned for less than a year. So even staunch long-term advocates adjust their strategies based on market conditions.

It’s been a wild ride for investors of late with volatility returning to global markets catalysed by the unwinding of the Yen carry trade. Whilst intermittent volatility shouldn’t surprise anyone, it has surprised the investors who’d grown to believe that equity markets gradually increase in value forever. What investors do next will arguably define whether 2024 is a good or a bad year for their portfolios…

For many years since its 1989 peak the Japanese stock market underperformed its developed world counterparts, and most global investors’ Japanese allocations trended lower. But that was then and this is now. The Japanese market recently broke through its 1989 peak propelled by improved governance, yen weakness, and better capital management.

Index concentration is increasingly becoming a concern for investors worldwide. Consider the S&P 500 Index, the most popular benchmark for US stocks. Over the past decade, the top 10 companies' share of the index's market value has surged from 14% to 33%. This means investing in the S&P 500 largely hinges on the performance of these top 10 companies, the majority of which are tech giants.