Australian Investor Autumn 2020
Australian Investor Autumn 2020

The Autumn edition of Australian Investor is available now. Our feature article examines why investors should keep sight of what they actually own during these volatile times, alongside our regular sections on Economic Outlook, Asset Allocation Tilts, Investment Strategy Update, and Best Investment Ideas.

The below is a preview of our Australian Investor magazine. To read this edition in full visit the Client Portal.

Investment Outlook and Recommendations

The global Coronavirus pandemic has resulted in numerous countries implementing necessary quarantines and social distancing practices to contain the pandemic, with the world put in a ‘Great Lockdown’. The magnitude and speed of collapse in activity that has followed is unlike anything experienced in our lifetimes. Governments and central banks around the world are providing unprecedented support to households, firms, and financial markets, and, while this is crucial for a strong recovery, there is considerable uncertainty about what the economic landscape will look like when we emerge from this lockdown.

Feature | Don't lose sight of what you actually own

As an equity investor, you own a fractional share of a business; this is the essence of a ‘share’. The value of what you own is not a function of this year’s earnings, despite the market’s attention on 12 month forward earnings and Price/Earnings ratios; rather it is a function of the business’ earnings from here into perpetuity, or the Net Present Value of its cash flow. If you don’t lose sight of this, you will make better decisions and keep your head while others lose theirs.

Warning: This report is intended to provide general securities advice, and does not purport to make any recommendation that any securities transaction is appropriate to your particular investment objectives, financial situtation or particular needs. Prior to making any investment decision, you should assess, or seek advice from your adviser, on whether any relevant part of this report is appropriate to your financial circumstances and investment objectives.