Analysis

The recent underappreciation of value stocks has made them an attractive proposition, but knowing the most important metrics to look at when appraising companies is crucial.

For the last decade, equities (repackaged and otherwise) have reigned supreme. But in a market where everything might soon start to break, investors have to be more nimble.

The Australian stock market has seen a stagnation in returns since 2006, leaving many questioning the wisdom of long-term equity positions. For retirees, it’s a particularly fraught issue, as their financial security depends on how these investments perform.

Technology stock valuations are rising, bucking the prevailing market conditions and further inverting the traditional bond/equities relationship. “This shouldn’t be happening”, says Ruffer’s Steve Russell.

Events like the Israel-Palestine and Russia-Ukraine conflicts may shock the world, and they may even influence markets. But history tells us geopolitical risks are always present, mostly factored in, and should never predicate panic selling.

Repeating his warning that markets are undergoing a “sea change” that will see a new set of winners and losers emerge in short order, the famed distressed-debt investor said it’s time to consider a profound shift from asset ownership to lending and credit.

Investors have a lot to gain from identifying the risks and opportunities present in the management of human capital. Productivity demands innovation, says Ruffer, and the companies that understand this will thrive.

The inimitable James Dunn picks a handful of niche critical minerals off the conveyor belt and discusses which ones have the most inherent stock potential.

The Bank of Japan has been marching to a different beat than other central banks. While the Federal Reserve, ECB and Bank of England hurried to ramp up rates in a battle against inflation, a deflationary mist lingered over Japan. Until now…

A data dependent Fed will eventually need to acknowledge signs of a strengthening global economy, says Neuberger Berman. Bolts of information that sway the central bank will continue to keep market watchers on tenterhooks.

Edinburgh-based Dundas Global Investors sees dividend growth, rather than dividend income itself, as the key to long-term outperformance. The numbers bear out the wisdom of that approach.

The Inside Network’s Jimmy Dunn takes a good, long, drama-filled look at the latest wave of equity funds that base their investment philosophy on companies that are exclusively founder-led.