Just as in science, catalysts are the starting point for major change or action in life. It may be a whistleblower whose revelations lead to significant systemic change, or an enzyme that helps speed up a chemical reaction.  In investing, however, catalysts trigger a drastic change in a stock's share price trajectory. And while no one can know the future, the prediction of catalysts to come can help investors profit over the short term.  This could be new management, an earnings report, a new...

Want to learn how to identify undiscovered stocks before the rest of the market does? Of course, you do - what else are you going to talk about at your next dinner party... Or at the pub over a lukewarm beer... Or around the office coffee machine?  In this episode, Livewire's Ally Selby was joined by LSN Capital's Nick Sladen and Elston Asset Management's Justin Woerner for a deep dive into how investors can do exactly that.  They share why investors, like you and I, may have an advantage in...

There's something to be said about discovering a gem of a stock the rest of the market missed. Like uncovering a musician before the world does, or being the first to watch a TV series before everyone else's eyes are glued to the same screen. It's a great feeling - and one that may leave you asking, 'Am I better than everyone else?'  In most cases, probably not. But to help you on your way, this episode is dedicated to covering under-covered and undiscovered stocks. This anonymous writer is...

As the name would suggest, future-facing commodities are those that will carry humanity forward as we take on the momentous task of decarbonising the world.   These are the commodities that are essential to the energy transition, including lithium, nickel, cobalt, manganese, graphite and copper.  Much of the demand for these commodities is expected to be driven by the uptake of electric vehicles over the next two decades, with governments around the world - including Europe, China, the US and...

There are a couple of hot commodities right now, including uranium, cocoa, and gold. The latter exploded higher in February this year after being stuck in a range for the best part of five years. Several reasons have been posited for gold's renaissance, the primary being that investors who expect the Fed to cut rates have been buying the commodity.  A low-interest rate environment reduces the opportunity cost of holding non-yielding gold and weighs on the US dollar, making bullion cheaper for...

The law of supply and demand determines commodity prices. Currently, the uranium market is undersupplied, just as more nuclear reactors requiring fuel are being brought online. Some reports suggest the market will remain in structural undersupply for more than a decade. It’s one thing for an underlying commodity to rally. Where the rubber meets the road for investors, however, is in equities. In that vein, we engaged Rick Squire from Acorn Capital and John Forwood from Lowell Resources to...

Over the last five, 10, 15 and 20 years, mid-cap stocks have managed to outperform both their large and small-cap counterparts. They've done this with the same volatility as small caps and, over the last decade, they've grown earnings at around 7.5% per annum - more than double that of the small and large-cap indices.  So, why is this? According to Blackwattle's Tim Riordan and Auscap's Will Mumford, it all comes down to quality. These businesses are more likely to have established themselves...

Unless you've been living under a rock, you've probably noticed it's been an incredibly strong six months for global markets. The ASX 200, for instance, has rebounded 13% over the past six months, while the S&P 500 and NASDAQ 100 have soared 23% and 24% respectively over that same period. Elsewhere in the world, the UK's FTSE 100 has lifted 6% in six months, Japan's Nikkei has skyrocketed 28%, and India's Nifty 50 has enjoyed a 15% bump. All in all, the MSCI World Index (USD) is now 21%...

In 2016, Bain & Company found that the companies most successful at maintaining profit growth over the long term disproportionately were companies where the founder was still running the business, still involved on its board, or where the principles the founder originally put in place persisted. That's because founders possessed these three traits: Business insurgency - A unique feature or capability that gives a business purpose, waging war on industry norms on behalf of its clients. A...

By now, you’re probably aware of the stats highlighting the growth of ETFs in Australia (if not, they’re available here).  Alright, alright already, we get it… they’re very popular. But just because something is popular, doesn’t always mean it is good, or that people know how to use it effectively (think Q-tips, running shoes, and Taylor Swift songs). So, for this latest episode of Buy Hold Sell, we reached out to two advisors - people actually using these products in client portfolios – to...

Around 51% of Australians (or 10.2 million people) hold investments outside their homes and superannuation, according to the ASX. Of these investors, around 20% (or 2 million people) use exchange-traded funds (or ETFs) - up from 15% in 2020. Investor interest in low-cost, liquid and diversified ETFs has seen assets under management in the industry explode over the last decade, with its market cap now reaching close to $190 billion. In fact, in the last 12 months alone, the market cap of the...

There are now more than two million Australians using exchange-traded funds (ETFs) to invest, an increase of 7% compared to 2022 (according to Betashares).  As of the end of February, there was $189.4 billion invested across 359 ETFs, and with BlackRock estimating the market could more than double by 2027, it seems there's no stopping the explosive growth of the low-cost, easily accessible ETF market.  So in this episode, Livewire's Ally Selby was joined by Shaw and Partners Adam Dawes and DP...

Growth stocks have been off to the races over the last few months, with the S&P/ASX 200 Growth Index rebounding 14% since hitting a low at the end of October 2023. Over that same time period, growth stocks like Megaport (up 52%), NEXTDC (up 44%), REA Group (up 28%), WiseTech Global (up 60%), and Lovisa (up 76%) - among many others - have all skyrocketed.  While I am not so sure that there are many ways to skin a cat, there are many ways to measure growth - think sales growth, revenue...

How do you avoid the small-cap potholes and identify the fast-lane stocks on the highway to success?  In this episode, Livewire's Ally Selby was joined by Regal Funds Management's Jessica Farr-Jones and Spheria Asset Management's Brittany Isakka for their tips and tricks for investing in emerging ASX-listed stocks.  They also share their outlook on small and micro-caps for the year ahead, the recent major changes they have made to portfolios, and two stocks they are backing with exciting...

If rates have peaked, which local cash rate futures indicate they have, long-duration growth names, small-cap stocks, and cyclicals are likely to continue to recover from here.  That said, there are some risks to that outlook - particularly given it's the market consensus. So in this episode, we'll be putting some of the ASX's up-and-coming small-cap growth and cyclical stocks to the test.  These small-cap stocks have had a stellar year, having risen an average of 117%. So can they do it...

When it comes to income, you need a recipe for success. Sure, term deposits are cooking up around 5% yields right now, but for income-hungry investors, 5% may just not cut it.  That's where equity income comes in. The yield on the market itself has been around 4-5% over the last 20 years - and a diversified portfolio of stocks with rising and sustainable dividends and earnings growth can deliver far more income than that.  Then there are franking credits, which add a little extra flavour to...

Over the 12 months to the end of December, housing costs rose 6.1%, alcohol and tobacco prices lifted 6.6%, medical costs bumped up 5.1%, and insurance and financial services prices soared 8.1%. We also spent more on food and non-alcoholic beverages, more on transport, and more on education.* All this is to say that it costs a lot more to be alive today than it did 12 months ago, and this anonymous writer is starting to feel the bite. Sure, inflation is finally starting to cool, but you would...

Global markets soared to new heights in 2023, with the MSCI World Index (AUD) lifting 23.2%. Lucky for income-hungry investors, this saw dividends grow with it, with payouts up 8.9% in Aussie dollar terms, according to Plato Investment Management.  While the majority of investors around the globe enjoyed increased dividend payouts in 2023 (compared to 2022), Australian investors were among the few who received less bang for their buck during the year, with dividend payouts falling 5.4%....

Given the underperformance of small and mid-caps since 2021, and the fact that central banks have tipped the end of the rate-hiking cycle, many money managers are spruiking the coming wave of capital that could enter the smaller end of the market in 2024.  While small caps tend to outperform post-recession - and we haven't seen one of those - the Small Ordinaries Index has already rebounded around 16% since hitting a low at the end of October. So is there more where that came from?  To find...

Last year, we asked two fund managers what they would do if they could start completely from scratch. It seemed to hit a nerve with our readers, with the episode turning out to be the most popular of the year. It's likely because we all, at some point in our investment journeys, have cursed the day we bought a particular stock (or let's face it, stocks) - and wished, wholeheartedly, that we could start over. Facing this dilemma, some investors may sell everything and give up for good. Others...

Welcome back to Buy Hold Sell for 2024! And what a start to the year it's been... This week, the S&P/ASX 200 hit a new all-time high, buoyed by investors' expectations for rate cuts over the year ahead. This is all thanks to inflation starting to ease, and recessionary fears finally starting to fall. But in a world of goldilocks thinking en masse, is the outlook for markets really as rosy as we think?  With this in mind, we can think of no better time to analyse Livewire and Market Index...

If only there was a way to identify game-changing opportunities before they are announced to the market. Sometimes, major strategic moves and company catalysts are telegraphed to the market. The Tabcorp demerger last year, for example, was the subject of multiple investor activism campaigns, over multiple years, before finally coming to fruition. BHP selling its oil assets is another example of a well-telegraphed event, while the recent Santos and Oil Search merger would have been discussed...

As part of Livewire's Outlook Series for 2024, James Marlay and Ally Selby challenged 12 of Australia’s most successful investors to each name one company that brings that “sleep at night” assurance so many of us are seeking right now. In many cases, their responses yielded well-known stalwarts of the investment world, including names in listed property, infrastructure and materials. But a couple of smaller companies, including those in technology, were also in the mix. Our featured fund...

No great investor ever got to where they are now by going with consensus. If you believed the analyst consensus of 2022, 2023 was going to be another challenging year for asset allocation as economies and markets were forced to come to terms with inflation and interest rates remaining higher for longer. Many analysts continued to have a deep US-led recession and smooth Chinese reopening as their base case.  Some even dared to venture that the return on expensive equities would trend downwards...