|
|
|
 |
 |
|
 |
 |
|
|
|
|
Anissa Cavallo |
|
|
Managing Director |
| |
|
|
|
|
|
Dear Anissa,
The brutal practice of trapping bears with sticks, twine and large metal teeth, traces back thousands of years to a time where the elements were the major concern in human life. Indeed the world has taken a mighty step back but there are now easier ways to protect your clients from the pessimistic roar of a declining market.
Alternative, boutiques, best of breed and positive performance all spring to mind when I announce the brilliant performance of our core fund managers even despite the bearish conditions.
Prime Value - 13.8% 5 Year Life Settlements Funds - 26.52% 1 Year Premium China Fund - 29.7% 6 month
This week we explore the concept of a bear market and whether we should be stashing the cash under the pillow. Fiona Clarke from Prime Value asks the question what are we waiting for?, Tom Elliott ponders whether this is a classic bear trap and our new resident economist Professor Robert Brooks, from Monash University, looks at the link between consumer sentiment and the market. And finally we have the results from our adviser survey eloquently summarised by Liam Egan from Money Management. |
|
|
|
|
|
|
|
|
 |
 |
 |
|
 |
 |
|
|
|
|
Fiona Clarke |
|
|
Senior Investment Analyst &
Manager, Prime Value |
| |
| WHAT ARE YOU WAITING FOR |
|
|
|
|
As a professional investor responsible for the personal wealth of many valued clients, we are often asked if we are in the midst of a bear market rally. Australian equities are up some 30% from their lows. In normal circumstances, missing out on a return of such a magnitude would seem ridiculous – one would be cross at such an opportunity lost. And yet, many, many investors wait on the sidelines, asking this basic question. In other words, have I missed the boat or will I be presented with another great opportunity to get in? Strangely enough, the answer to both of these questions may be “yes”!
Firstly, investors have missed the boat, so to speak, because the underlying assumption behind the March lows was false.
READ MORE |
| |
|
|
|
|
|
|
 |
|
|
|
|
|
Professor Robert Brooks |
|
|
Department of Econometrics and Business Statistics, Monash University |
| |
| BEAR MARKETS AND CONSUMER SENTIMENT |
|
|
|
|
Stock markets are known to move between bull and bear market phases. When in a bear market phase the focus of investors and policy makers alike is to get an idea of how long the bear market is going to last and when it will turn.
If we are to use history as a guide, research tells us for the post World War II period in the US the average bull market duration is a bit over 2 years, while the average bear market duration is approximately 1 year. This would therefore suggest that market conditions might turn soon.
READ MORE |
| |
|
|
|
|
|
|
 |
|
|
|
|
|
Tom Elliott |
|
|
Managing Director MM&E Capital |
| |
| IS THIS A BEAR TRAP? |
|
|
|
|
Whether the recent rise in the stockmarket represents the start of a new bull market, or is just a classic 'bear trap' of the kind seen several times in the early 1930s, it’s the $64m (billion perhaps!) question on all traders' minds at the moment. And to be entirely honest and upfront, no one really knows for sure – but if pushed I think the sharemarket is likely to retrace some of its gains before resuming a genuine upward march.
What’s not in doubt is that in percentage terms the rise experienced by the Allords since the lows of early March '09 represents one of the greatest rallies seen in recent years – up 25% as at the time of writing. The reasons for this rally are threefold:
READ MORE |
| |
|
|
|
|
|
|
 |
|
|
|
|
|
Liam Egan |
|
|
Journalist Money Management |
| |
| SURVEY RESULTS: FUM A 'KEY INFLUENCE' ON ADVISER FUND SELECTION |
|
|
|
|
A quarter of advisers select managed funds for their clients on the basis of their funds under management (FUM), according to a survey by BDM Direct, a Melbourne-based distributor of fund managers to financial advisers.
The survey of over 800 independent and aligned financial advisers found that adviser rate FUM as high as ‘asset class’ and ‘fund track record’ as a reason for selecting a fund for their clients.
Each of the three categories received were voted by 25 per cent of the surveyed advisers as their primary reason for selecting a fund.
READ MORE |
| |
| |
| |
|
|
|
|
LATEST MONTHLY
FUND UPDATES |
|
|
|
|
|
|
|
|
26.52% 1 Year* |
|
|
|
|
|
13.8% 5 Year* |
|
|
|
|
|
29.7% 6 month* |
|
|
|
|
|
*as at 31 May 2009 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
