We begin the New Year with some interesting times in the market (has it ever been different?). Inflation Stateside is running at the highest pace in nearly four decades (i.e. 1981), the markets are expecting a tightening by major central banks, the PBOC being the outlier in going the other way in being increasingly accommodative, and Omicron continuing to gain traction. These are just a few of the headlines grabbing investors’ attention. So, with that in mind, let us go back to a basic question to begin the year, where to next? And more importantly where do we allocate? This week we seek to look at two elephants in the room, in answering these questions: monetary policy and geopolitics (which may very well present the next leftfield event).
Speaking to prospective and actual clients everyday, we get a fair sense and understanding as to the pulse of the market. Throughout those conversations, there are often common themes and questions. Among these, first, should we continue to own equities? Second question, where to allocate in a world of continued low interest rates? Thirdly, we keep hearing about inflation, but what does this actually mean?
Robert Swift takes a look at the current situation around inflation and looks at how we can invest to maintain our spending power in real terms. A must read for those now receiving next to nothing for their bonds and fixed income.
Last week Sid Ruttala provided us with a list of things not to worry about, this week he goes the other way and takes a look at a couple of things to keep a eye on given the current market environment.
What do premium art, technology stocks and agricultural assets have in common? This might sound like a rather ridiculous notion to explore but bear with us for a little and it will hopefully make a little more sense.
This week we revisit an old favourite of ours, asset allocation. Specifically, we begin this article by saying that ýou live and you learn, and the past couple of months have certainly taught us a lot.
This week we take a look at at a couple of things to consider from an asset allocation perspective. These are extraordinary times and sometimes it pays to think both logically and outside the box.
The past couple of days both the Australian and global markets have seen us go into the red. The now apparently exponential rate at which COVID-19 is spreading and fears around a global pandemic have driven investors into safe-haven assets like gold and treasuries, pushing the already low yields further. So, we thought it might be pertinent to ask ourselves the question: What is next for markets? Where do we allocate?
Last week we wrote about asset allocation for the coming year (2020) on a holistic basis. This week we would like to build on that topic and examine the context that surrounds equities headed into the new decade.
This week we would like to revisit that age-old topic, and perhaps one of our recurring favourites, asset allocation. This is a topic made especially pertinent given the unprecedented low-interest rates combined with high valuations across both equities and fixed income.
Last week in our article looking at the potential for an escalation in fiscal deficits we made a few calls, first that the S&P 500 would inch higher following more QE from the Federal Reserve and news flow out of China negotiations. This week we would like to follow this up with what we feel are some rather interesting developments in the seemingly bubble-like universe of central banks and their viewpoints. As well as some interesting stories around why we feel like there will be a reversion to the mean in terms of value versus the market all together through next year.
One of the most baffling questions for investors in recent years has been the excessive and, we would say, egregious valuations we have witnessed with growth equities. With some commentary beginning to surface suggesting that value might be on the come back, we give our two cents on the issue.
This week we look at nothing new. The lofty valuations we are seeing in the tech space are neither new or unprecedented in a historic context. A paradigm shift like this is simply an opportunity to achieve out sized returns. Just look at the trains...
This week we return to the topic of innovation. Just what is it that allows innovations to take place? And more particularly where should we be placing our bets to take advantage?
So here we are, official interest rates are now at 1% with a further 25bps cut possible in August which would take the cash rate to 0.75%. While there has been much speculation in the media about the flow on effects for both the property market and consumer spending, it would be prudent to ask the question (as indeed Governor Lowe did) as to how much stimulus this really brings to the table. Even assuming that the full extent of the cuts are passed on by the major banks (not happening), the actual impact this will have on a consumers propensity to spend remains somewhat unclear. What this does to asset prices is however another story altogether.
We return to the ever important topic of portfolio management and take a look at three extremely important things to keep in mind when managing an investment portfolio.
It is quite fine to chase and expect returns, after all, that is one reason we invest, It is however important to understand the risk we are taking to generate the returns we expect. We take a look at risk and try to understand the best way to approach taking risk in this current volatile or at least uncertain market environment.
This week we look at the always important topic of portfolio construction. Achieving an optimally balanced and diverse portfolio is more important than ever when heading into increasingly uncertain times and certainly, we would argue, a wiser move than exiting the market completely.
This week we present a piece by Neil Margolis, from Merlon Capital Partners who power the TAMIM Australian Equity Income IMA, examining asset allocation in a post retirement mind frame.
TAMIM Director Darren Katz takes a look at the fixed income space. In today's low interest environment our traditional views on asset allocation and how to achieve diversification are being tested. We take a look at private debt, once the preserve of the ultra wealthy and big institutions, fortunately we are now able to access this unique asset class.
This week we present a piece by Hamish Carlisle, analyst with Merlon Capital Partners who powers the TAMIM Australian Equity Income IMA, as they examine asset prices.
Information current at 31 March 2018.
This week Robert Swift takes a look at the opportunity that lies in small cap companies, but not in Australia and not by the Australian definition of "small cap".
This week TAMIM Joint Managing Director Darren Katz takes a look at what to expect in the coming quarter. Given the firms investment view he points out a number of key investment thematics to keep an eye on while also digging into asset allocation.
Robert Swift provides an update on his stance on asset allocation having just ticked over into the new financial year.
This week Robert Swift takes a look at momentum and what it is telling us about asset allocation. Where should you deploy your capital and how? Will this achieve optimum results in the current economic climate.
Markets & Commentary
At TAMIM we are committed to educating investors on how best to manage their retirement futures.
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TAMIM Asset Management provides general information to help you understand our investment approach. Any financial information we provide is not advice, has not considered your personal circumstances and may not be suitable for you.