Markets

Most of us have not experienced the current level of government and institutional direction of our lives. The impact on business is likely to be profound.

ASX shares opened lower on Friday with the All Ords index down 3% before midday on Friday, following overseas markets downward. 

Our underlying companies in the Legg Mason Martin Currie Global Long Term Unconstrained Fund have shown resilience in terms of balance sheet strength and relative share price performance. However, given the unprecedented nature of the exogenous shock, and the recessionary environment we are going through near term, we have identified a limited number of risks,…

Shareholder activist groups are diverting company management’s time and energy towards narrow environmental and social causes. We explore why active ownership and purposeful engagement can achieve a better outcome for all stakeholders.

The COVID-19 global pandemic is unfolding quite differently to all other major market events seen through history. Governments globally are facing a delicate balancing act between trying to minimise the health impact of the virus, whilst managing the severe disruption to their economies. The sudden and sharp shock facing the global economy appears without precedence.

I recently tried an experiment. I changed several light bulbs, and since one required a little rewiring, I sent my wife (also known as the majority shareholder) a bill for $110.50 (plus GST). In return, she sent me a bill of $457.98 for her preparation in late December of a sumptuous meal, plus her work managing all social connections associated with the holidays. 

Regardless of where they live, investors have a significant opportunity to diversify their equity portfolio outside of their home market.

Australia, like the rest of the developed world, is on the verge of the largest intergenerational wealth transfer in history. It’s estimated more than $3 trillion will change hands over the next 10 to 20 years as the Baby Boomer generation pass on their wealth to others.

The third quarter capped the best year-to-date return for the Bloomberg Barclays US Aggregate Bond Index since the first nine months of 2002. Although bond prices may continue to advance, we anticipate lower returns may accompany a rise in volatility in coming quarters.

If you’ve seen the movie The Big Short you will remember Christian Bale’s quirky character Michael Burry – the manager of the Scion Capital hedge fund who realises the US mortgage-backed security market is a massive bubble. He goes on to make a fortune by betting on its crash.

Capitalism’s days may be numbered – at least judging by recent polls. A majority of millennials reject the economic system, while 55 per cent of women aged 18 to 54 say they prefer socialism. More Democrats now have a positive view of socialism than capitalism.

On August 1, President Trump sent four tweets about China. With tweet three, which talked about additional tariffs on US$300 billion of goods exported from China to the US, Trump rocked markets by publicly escalating trade war rhetoric.