Investment Articles & Insights

With the US economy and stock market continuing to drive global markets, Aussie investors increasingly need to understand what’s driving American fund flows. Spoiler alert: it’s not just corporate earnings. There are liquidity drivers at play in the US that are creating remarkably strong feedback loops with stock valuations and the broader economy. Understanding how these liquidity feedback loops work may well provide clues as to what’s coming next for global equity markets, including the ASX…

The fastest rate rising cycle in history was always going to test the commercial property fund sector. With typical loan to value ratios of 40-70%, it’s an asset class which is at the mercy of the RBA’s cash rate decisions. As such, investors tend to be bullish on commercial property funds when rates are falling, but rising rates generally spell bearish sentiment.

It’s been a torrid couple of years for ASX smaller companies with most investors turning their backs on the asset class like the plague. The extent of their recent disfavour has been hard to fathom given the positive trend in equities since the pandemic. This raises the question: is now the right time to revisit small and micro caps whilst others remain fearful? To answer that, we’ll need to delve into the reasons for the recent underperformance for a steer as to what’s coming next…

Electric vehicle stocks are experiencing a challenging start to the new year. Tesla's price cuts, higher-for-longer interest rates, and concerning economic data from China have dampened investor sentiment, casting a shadow over the once-bullish EV market.

In recent years, the private equity sector has increasingly cast its fund raising net to include individual investors who are aiming to generate strong risk-adjusted returns over the long term. With more investors considering the private equity opportunities on offer, it’s worthwhile delving into this opaque sector’s unique benefits and challenges.

After three straight months of global equity markets rallying driven by expectations that the Fed has paused its rate raising cycle, volatility is currently unusually and arguably unsustainably low. The historical data suggests it’s unlikely this situation will continue for much longer. In short, it’s probably the right time to prepare for volatility to return in the coming weeks or months.

Last year was another thematic-driven year with thematic ETFs gaining popularity among Australian investors. According to the 2023 ASX Investor Study, the proportion of Australian investors using ETFs has grown from 15% to 20% over the past three years.

You may have noticed you’re hearing more about private debt (also known as private credit) as an asset class these days. You’re not imagining it. Private debt is booming as an asset class. Preqin estimates the sector’s assets under management will grow from US$1.5 trillion in 2022 to US$2.8 trillion by 2028, reflecting growing awareness of the sector’s solid income generation credentials.