Australia

  • 21 Jul
    Why Investing In Australia Is A Good Idea Now

    Why Investing In Australia Is A Good Idea Now

    • Positive demographics, strong economic growth, a good business environment, and relative cheapness is what you should look for when investing abroad.
    • Australia has it, and on top of it, Australia offers a high dividend yield and a large potential currency tailwind.
    • The ETF is highly skewed toward financials but a decent stock picker can find a few great picks on the Australian stock market.

    Introduction

    Before investing in a country, I first like to check the demographics because it’s an easily predictable trend that has a huge impact in the long term.

    Because demographics are a long-term trend, it’s usually shunned by most analysts, but a population that grows at 3% per year adds at least 30% to a country’s GDP over 10 years in comparison to a country without population growth (think some European countries). More →

  • 11 Jul
    Investing In This Sector Is Boring, But It Can Make You Rich

    Investing In This Sector Is Boring, But It Can Make You Rich

    • Utilities offer stability, inflationary protection, high yields, and less risk than the market.
    • However, utilities aren’t all equal and a lot depends on their debt levels.
    • A look at what’s offered around the globe shows that there are higher yields with strong potential currency tailwinds in Brazil and Australia.

    Introduction

    The usual saying is that defensive investing won’t make you rich quickly but it can make you well-off over a longer period of time. Utilities are an excellent investment for those who don’t like get rich quick schemes and prefer to see their wealth slowly but steadily grow over time and give them inflationary protection.

    In today’s article, I’ll discuss the benefits and risks of investing in utilities, how to approach them, how to find good investments, and I’ll discuss a few ideas. More →

  • 12 Mar
    Sunday Edition: My Favorite Long-Term Currency Play

    Sunday Edition: My Favorite Long-Term Currency Play

    Markets are forward looking, and therefore have a way of discounting many fundamental arguments as to why an asset should rise or fall, so that when the “fundamentals” seem obvious, it’s too late as a trader, and often even as an investor to earn outsized gains.

    To illustrate my point, I will use an article I came across that was written on October 25, 2016.  Even though the article is now a little over four months old, the basic thesis put forth in the article is still “relevant” to my discussion. More →

  • 16 May
    Investing Down Under

    Investing Down Under

    • Australia has a stable and transparent economy, is rich in natural resources and the AUD currently looks cheap.
    • The Australian stock index consists of mostly financials but all have excellent ratings.
    • Only 0.09% of the S&P 500 revenues are generated in Australia therefore Australia provides additional international diversification.

    Introduction

    Australia is a country with a population of approximately 23.5 million people, highly developed with a GDP of $47,186 per capita, low unemployment rate of 6.1% and low government debt at 35% of GDP (US 125.3% of GDP). The long term interest rate is at 1.75% and the country is ranked in 13th place on the global doing business list. The Australian economy grew 3% in 2015 and it is dominated by the service sector representing 68%, followed by the mining sector that represents 7% of the economy. The above seems stable and therefore this article is going to provide an analysis about the potential risks and rewards of investing in Australia. More →