Insights

Are we in a bubble?

Video Update from Tim Farrelly

There has been commentary in the media recently about whether the markets may be overheating. As the recovery unfolds, some investors may be worried about the formation of a bubble.

Watch this presentation from Tim Farrelly, a member of Private Capital Advisers Investment Committee on his views in relation to this critical investment issue.

2020 A year we won't forget

December 2020 Market Update

All years are amazing in their own way but 2020 was dramatically different. A global pandemic, the steepest recession we have seen for almost 100 years, the first recession in Australia since 1990, rapidly rising unemployment, deserted cities… who would have thought?

And yet, despite all the ups and downs, markets haven’t been too bad. Australian equities have returned 3.5% since the beginning of the year, US equities 9.4% and listed property -2.5%. If we had been asleep all year, we may have been tempted to think it had been uneventful.

Of course, it was not in the least. Have a read here for the lessons to learn - or relearn - as a result.

Markets and economies moving in opposite directions

October 2020 Market Update

Over the past quarter we have seen generally positive market movements amidst a generally deteriorating economic environment. While on the face of it this seems odd, it is not really that unusual and is largely a continuation of the adjustment to the market’s over-reaction in March. As can be seen in the table below, Australian equities and listed property are still lower than their levels of a year ago despite the post-March recoveries...

The reason why you may need to update your will

Estate plans can be potentially outdated

There has been some commentary in the media as of late as to how more people are reviewing their wills thanks to COVID-19 and related changes in property and share values. Having an up to date estate plan is essential if you want a say in how your wealth is eventually distributed. Read here in more detail as to why having a newer estate plan gives you the confidence your estate plan will deliver the results you want.

We are not finished with volatility

August 2020 Market Update

A large part of the downturns in February and March have been recovered as calm has returned to the markets. Nonetheless, we believe that it is too early to say that the market impacts of the pandemic are behind us. 

There are still a huge number of uncertainties. We don’t know if the Victorian outbreak is about to be brought under control. We don’t know if the other states will be able to avoid secondary flare ups and shut-downs.

Extraordinary times in markets

March 2020 Market Update

At the start of last week I wrote,

“The market correction at the end of February has taken us back into Fair Value and Cheap territory for most asset classes. This is a time to be fully invested - even though it may feel uncomfortable. This is what long-term investing is all about.”

What an understatement. Today that statement is even more true. This is a time to be buying not selling.