Summerhill Financial Services, based in Australia, provides of financial planning services to help build, manage and protect your wealth.
Taken at the Pink Palace at Monaco in September 2004
I was part of a Study Tour of China in late March, consisting of 15 investment professionals from Australia, the US, the UK and Lebanon to obtain a deeper understanding of China as an investment market. The article was written by a journalist who joined us on the tour which you may find of interest, and can be accessed here.
I am on a Study Tour in China this week, with the aim of increasing my understanding how China and its development is impacting investment markets in both Australia and around the world. We have a financial services journalist on tour with us, and although the article is targeted to advisers, you may be interested in an article written on some of his thoughts of the tour so far….Read the article here.
With the number of hybrid securities being issued at the moment, the Australian Securities and Investments Commission (ASIC) has urged investors to exercise caution before investing in hybrid securities and unsecured notes.
Hybrid securities have features of both debt and equity, and have been issued by a number of major Australian corporations, including the big four banks. Given the ongoing volatility in equity markets, many investors are attracted to such investments, which they perceive as offering more reliable returns. (more…)
Wondering what Warren Buffet thinks about investing in bonds, gold and equities in the current climate? The article in the link below may be of interest which was in Fortune magazine over the weekend.
Equity investors around the world had a disappointing year in 2011 as thirty-seven out of forty-five markets tracked by MSCI posted negative returns. The US did well on a relative basis and was the only major market to achieve a positive total return, although the margin of victory was slim. Total return for the S&P 500 Index was 2.11%, and the positive result was a function of reinvested dividends—the index itself finished the year slightly below where it started.
Throughout the year, investors seeking clues regarding the strength of business conditions or the prospects for stock prices were confronted with ample reason to rejoice or despair. Optimists could cite the strong recovery in corporate profits and dividends, the substantial levels of cash on corporate balance sheets, low interest rates and inflation, a booming domestic energy sector, continuing strength in auto sales, and record-high share prices for leading multinationals such as Apple, IBM, and McDonald’s. Pessimists could point to persistently high unemployment, slumping home prices, tepid growth in retail sales, worrisome levels of government debt at home and abroad, and political gridlock in both Congress and various state legislatures. (more…)
It’s that time of again, when harried finance editors ask reporters to call investment professionals and cobble together top predictions for the coming year. These are fun to write. But for readers, they’re more entertaining a year later.
Take the late 2010 Barclays Capital Global Macro Survey of more than two thousand institutional investors. The pick for the best performing asset class in 2011 was equities (with 40% support), followed by commodities (34%) and bonds (less than 10%).1 The consensus prediction was a 15% gain in the US S&P-500 for the year to around 1,420.
As we now know, the truth turned out to be rather different. To the beginning of December and using broad indices, diversified fixed income was the best performing asset class of the year, followed by government bonds. Returns from commodities and equities were negative. The year-to-date return for the S&P-500 was close to zero. (And remember, these are the forecasts of big institutional investors.) (more…)
“The hardest arithmetic for human beings to master,” wrote the great American working man’s philosopher Eric Hoffer, “is that which enables us to count our blessings.”
It’s a piece of wisdom worth recalling after another year that has tested the nerve of many investors and prompted questions about what current generations have done to deserve to live in such a tempestuous stage of history.
As the year winds down (if that’s the word for it!), financial markets are gripped by uncertainty over developments in the Eurozone crisis. Each day brings fresh headlines that send investors scrambling from virtual despair to tentative optimism.
While not seeking to downplay the very real anxiety generated by these events, particularly in relation to their effects on investment portfolios, it’s worth reflecting critically on our often second-hand memories of the “good old days”. (more…)
Concentrating on each piece of economic news can undermine investment strategies. Look past the immediate commotion for the longer term trend
There is still a lot of noise and much for investors to worry about in the economy and the markets. But too much focus on each new piece of economic news can lead to bad decisions and undermine sound long-term investment strategies.
Intuitively, it may look like a good idea to invest in a region or country where economic growth prospects seem strongest and to avoid those that appear weakest.
But we don’t need to look too far back to see that this doesn’t always work. (more…)
The recent downturn in share markets is distressing and confusing for investors. The emotional charged coverage of the market turmoil and the multitude of conflicting views can derail even the most disciplined investor.
It can be helpful to step back from this noise and view the current events in perspective.
It has been a long week with investment markets and a more bumpy ride than usual. To help reinforce the message of why not to give up and sell at these levels, you might be interested in the following thoughts. (more…)
