Monthly Investment Review May 2014

Tuesday, June 10 2014

The market held up better during May than many expected. The key reason for this appears to be due to the on-going support provided by very low bond and interest rates. This month we review the following drivers of the very low bond yields and the impact on equities.

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Monthly Investment Review April 2014

Tuesday, May 13 2014

Over the past month we have witnessed large bifurcation in markets with High PE growth stocks coming under pressure while defensives performing well despite trading at lofty multiples. We will focus this month on the valuations in those segments which are causing us some concerns such as the high PE segment, the defensives and then look at the banking sector to see if the strong run can continue. We will then review some recent stock examples to identify where we are finding opportunities.

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Currency Update

Sunday, April 27 2014

Since late January the A$ has risen from 86c per US$ to around 94c. While this has been good for the oversees traveller, it is not so good for the competitive position of the Australian economy—particularly manufacturing, tourism and agriculture. These are segments we would like to see picking up to offset the declining resources segment.

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