On 22 February 2024, Japan’s Nikkei 225 closed at ¥39,098.68, eclipsing the previous record high set in December 1989–a staggering 34 years ago. As we highlighted in a prior article, Japan went through a truly extraordinary boom in asset prices through the 1980s that caused a bubble to form in the value of both shares and real estate that would take more than 3 decades to overcome–a period that surpassed even the 25 years it took for the Dow Jones Industrial Average to fully recover following the Great Depression in the United States from 1929 to 1954.
Healthcare accounts for approximately 10% of the S&P/ASX 200 index and is widely regarded as a reliable and defensive sector that provides returns that are relatively uncorrelated with the rest of an investor’s portfolio and the economy at large–often with less volatility. After all, spending on healthcare is usually non-discretionary–when you need it, you need it–and health challenges occur regardless of the state of the economy. Unlike certain other sectors, such as consumer staples, it is also an area where consumers are willing to spend a greater amount as their wealth increases. An ageing population (as we are experiencing in Australia) is another tailwind for the sector, and technology advancements can also create new opportunities for both revenues and positive patient outcomes.
On a Behind The Memo podcast last year, renowned value investor Howard Marks stated that: “What I learned from my first 10 years of experience is that good investing doesn’t come from buying good things but from buying things well. The difference is more than grammatical.”
With the end-of-financial-year reporting season upon us, it’s often good to have a game plan going for when each of the companies you own publishes their full-year financial results. In particular, research has shown that investors often struggle with deciding whether to sell an individual investment. This is often psychological, for example, because they don’t want to sell at a loss, or for fear the stock price will rise after the investment has been sold.
While we encourage long-term investing, there are several important reasons why it may be time to part ways with one or more of your investments. Here are five of the most important ones to keep in mind this reporting season. We’ve written several times about the historic difference in valuation between small and large companies. There’s a number of ways investors could take advantage of this–small cap ETFs, small cap funds, or for the enterprising investor, picking your own individual small cap stocks. Today though, we’re introducing a new, unique opportunity.
Diversification is no secret, it’s a well-known part of investing. “Don’t put all your eggs in one basket” is a common phrase that we learn at a young age, and something that most people put into action, at least to some degree–usually after we make a big mistake, or see one made by a partner, friend, or family member.
The Financial Times (FT) recently reported that for the first time, the S&P 500, corporate investment-grade bonds and treasury bills are all offering the same yield of 5.3% for prospective investors. The leading financial newspaper provided a useful graphic depicting the three respective yields over the past decade.
Cathie Wood's ARK Investment Management is well known for betting big on disruptive technologies through its exchange-traded funds, headlined by the ARK Innovation ETF (NASDAQ:ARKK). Wood is one of the loudest bullish voices on Wall Street regarding the potential upside of the tech sector in the long term. However, those tightly held beliefs have led to a volatile performance.
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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.
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