Investor Insights

Last week the team attended the Australian Securitisation Forum. The event is held annually and brings together the leading industry bodies, representing participants in the securitisation and covered bonds markets. We had the opportunity to hear from a wide range of market leaders and competition. Each provided valuable insights into their own current views and outlook on the market.

I have had my fair share of bad calls. After more than three decades of investing, it’s safe for me to predict that there is next to no advantage in making predictions.

As a result of the corporatisation of restaurants, there’s a plethora of them. The emergence of the Restaurant Group – Merrivale, Bentley, and The Speakeasy Group are examples which offer a business solution to the cost of independence through bulk buying power (for food and fit-outs) and merged accounting and marketing functions.

Those wondering about Australia’s interminable house price rises may have read our blog post explaining immigration is one of the leading reasons prices remain elevated despite the fastest increase in interest rates in Australia’s history. But the flavour of that immigration should be drawing the ire of home buyers who find prices unaffordable.

Just 48 hours after the Reserve Bank of Australia (RBA) lifted rates for the 13th time by 25 basis points to 4. 35 per cent, the U. S. Federal Reserve’s Chair Jerome Powell said at a conference in Washington that “we are not confident” the Fed has tightened enough to bring inflation down to its 2 per cent goal.

In this video insight, David Buckland and Gary Rollo discuss the underperformance of small-cap stocks compared to large-cap stocks since the beginning of 2022. Gary explains that economic uncertainty has contributed to the recent underperformance, as investors tend to shift from small, less liquid investments to larger ones during such periods. However, he views this as a temporary condition, anticipating that once economic uncertainty diminishes, the longer-term performance characteristics of small caps may come into play.

In this week’s video insight, I delve into the events of mid-October, specifically focusing on the collaborative proposal by ARN Media and Anchorage Capital Partners for a non-binding, indicative acquisition of Southern Cross Media. The merger sparked concerns about market dominance, particularly in the commercial radio sector in metropolitan Australia, leading to scrutiny from the ACCC. Notably, over the weekend, Kerry Stokes’ Seven West Media strategically acquired a 20 per cent stake in ARN Media, raising questions about his broader interests across Australia. The developments add layers of intrigue to the future of Australia’s commercial radio sector, making it a captivating subject to observe.

The Reserve Bank of Australia’s (RBA) latest rate rise has serious consequences for consumers and investors. There can be no argument that the RBA’s battle against inflation dominates investment commentary. Figure 1. Australian annual inflation And even though inflation is cooling in Australia, food price increases remain steep. Figure 2.

In the current financial climate, retirees and those approaching retirement are often caught between the Scylla and Charybdis of relatively low-interest rates and equity market volatility. The quest for a stable income solution has never been more pressing.

In the thriving metropolises of Australia, the real estate horizon is gleaming brighter than ever. House prices have surpassed previous highs, putting a final nail in the coffin of those pessimistic forecasters who predicted 25-30 per cent declines.

Private credit, in your author’s opinion, will feature in the top ten most used investment phrases for 2023. My BBQ conversations on weekends this year have gone from penny stock recommendations to weird and wonderful ways to get exposure to private markets, notably through credit.

The International Monetary Fund (IMF) have called on the Reserve Bank of Australia (RBA) to raise interest rates further.  ​ The IMF is concerned with the persistent rate of inflation. Whilst they are confident in assuming that inflation has peaked, the rate of decline is too slow and core inflation remains firm.