Investment Articles & Insights

Worryingly, Australian economic growth decreased each quarter of 2023 so the economy has been in deceleration mode for some time now. The economy only grew 0.2% in Q4 2023, and 1.5% for 2023. Given the population has been growing faster than that, Australia has been in a per capita recession for some time now. In fact, this is the slowest rate of Australian economic growth since way back in the 1990s (excluding the pandemic and the GST introduction). In case you’re wondering why the Aussie economy is languishing while the global economy continues to grow at a decent clip, we take a look under the hood for a guide as to what’s coming next…

Berkshire Hathaway’s cash pile reached a new all-time high of $US189 billion by the end of Q1 and is expected to continue rising from here. It’s unusual to see a global leader sitting on cash worth 22% of its market cap, and it’s particularly noteworthy when one of the greatest investors in history is at the helm. For an investor of Warren Buffet’s genius, one thing is for sure: sitting on a such a massive cash pile is a conscious and informed move which the rest of us can learn lessons from.

With the significant gains witnessed in AI stocks such as Nvidia, Microsoft, Meta, and Super Micro Computers over the past year, many investors are now pondering whether it's too late to jump onto the AI bandwagon—and rightly so.

Being aware of major investment themes at play often makes the difference between investing with a tailwind behind you versus a headwind in front of you. Needless to say, investing with the benefit of structural tailwinds is a much easier pathway to investment success.

Remember when the 60/40 portfolio was regarded as a rock solid approach to portfolio construction? How times have changed.

Have you ever thought you were aware of all the potential market-moving macro developments, only to be surprised by a left-field occurrence which you didn’t realise was a game-changer for the global and Australian markets?

What a year 2024 is turning into for global investment markets. Long term trends and playbooks are being turned on their heads on a weekly basis. It’s emerging as a year when it pays to have a long term investment plan to follow while the noise gets louder and adds to the market’s confusion. It’s also a year in which it’s important to understand why global markets are surprising so many investors to ensure you remain unsurprised by what’s happening, and thus comfortable sticking with your plan.

Financial markets thrive on long term correlations holding for the simple reason it provides high-probability context for investors to make investment decisions. So when a long term correlation breaks down that most investors thought made financial and intuitive sense, it’s generally worth delving deeper.