APC Perspectives



  • Two Valuable Lessons for Young Investors - I was recently asked to put some thoughts together for investing newsletter Cuffelinks on what advice I would give my 20 year-old self. Thinking about this reminded me that becoming a better investor is an iterative process that occurs over many years. The only way we can improve as investors is if we learn new things …
  • Can you beat the Market? - The Active vs Passive Debate Australian Private Capital, over many years has observed that ‘Passive’ investment management tends to deliver a better long term return than ‘Active’ investment management. But why?…… Daniel Kahneman, Professor of Psychology at Princeton and winner of the 2002 Nobel Prize in economics probably said it best. “The idea that any …
  • A Focus on Trump Trades - US Market Reaction – Insights Markets completely got the US Presidential election result wrong, but ended up with good gains nonetheless. The view was that “Trump should not win, but if he does markets will tank.” As it turned out, Trump won but the market melt-down lasted only a few hours – with Trump’s less …
  • Most Fundies Can’t beat the Index, but playing the long game helps - Sixty percent of large cap managers failed to beat the index over the past year according to the 2016 mid-year review by Dow Jones of active versus passive investing, while over five years almost 70 per cent of managers couldn’t match the major index. The results were better if investors had given their money to …
  • President Trump could be good for the economy - Reserve Bank governor Philip Lowe has predicted some of the Trump administration’s economic policies could be good for Australia and the global economy, while warning it could also turn out “very badly” if America retreats from the international order of the world. In answers to questions following his first public address of the year, opening the A50 …
  • Thinking Small - Every night on the TV finance news, you’ll hear about the ups and downs of household name stocks, like the big four banks, Telstra, CSL, Wesfarmers, Woolworths, BHP Billiton and Rio Tinto. But the market is more than that handful of names. There are about 500 stocks in the All Ordinaries index, the indicator often …
  • Pokémon Investing - Have you noticed the surge recently in people wandering aimlessly and staring at their smartphones? Chances are they’re playing Pokémon GO, the latest craze. It’s an activity eerily close to how some folk see investing. From Tokyo to Frankfurt and from New York to Sydney, tens of millions of people have become obsessed with finding …
  • Diversification Counts when Uncertainty Beckons - It is a good time to take a simple temperature check. Pick the option that best describes your attitude to investing today: A – confident B – fearful C – uncertain D – all of the above Economic messages and market signals blended with dramatic and tragic geo-political events are presenting investors with lots of …
  • History on the Run - When news breaks and markets move, content-starved media often invite talking heads to muse on the repercussions. Knowing the difference between this speculative opinion and actual facts can help investors keep their nerve. At the end of June, UK citizens voted in a referendum for the nation to withdraw from the European Union. The result, …
  • Politics and Investing - Political news is dominating the front pages right now, with a presidential election in the US, general election in Australia and a referendum in the UK. What does it all mean for markets? “It promises to be a nervous week for global markets as traders mull over the relative performances of the US presidential candidates. …