Welcome back to the May edition of the EW&L Newsletter.

In this issue, we discuss the value of volatile markets and fluctuations, and how to identify opportunities within them.?

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We look at our last few guests on the podcast, including an interview with the CEO of female-founded Liquid Gold Consultants; and the founder of Audeara, a company that creates and sells headphones for the hearing impaired.?

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Understanding the Value of Market Fluctuations and Volatility

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“Market fluctuations are your friend, not your enemy. Profit from the folly, rather than participate in it.” - Warren Buffett?

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With global markets in a renewed state of volatility, it is more important than ever to reflect on why this is often beneficial for strategy-driven investors.?

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Volatile markets tend to spark value by their very nature, creating situations where some companies are oversold - and at good value. It’s common for entire sectors to sell off during volatile market fluctuations; in turn dragging great company values down with the not-so-great.?

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Historically, identifying this value (based on long-term fundamentals) has created enormous investment opportunities.?

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That’s why at EW&L, we have always believed that the right long-term strategy coupled with an eye for value and opportunity is the wisest approach to investing.?

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The Exchange Podcast Catch-Up:

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Check out our latest episodes from The Exchange Podcast:

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Susanne Bransgrove (Founder Liquid Gold Consultants) - Family Business Succession, The Discussion You NEED To Have Now

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Managing Partner Tim Whybourne sits down for a conversation with Susanne Bransgrove, founder of Liquid Gold Consultants.?

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Susanne specialises in guiding family businesses through critical issues like succession planning, integrating the next generation, governance, and communication. Growing up in a third-generation family business in Germany, Susanne possesses a deep understanding of the challenges faced by families attempting to balance business performance with the diverse needs of different generations.

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James Fielding (CEO Audeara ASX AUA.ASX)

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Managing Partner Tim Whybourne catches up with James Fielding, the entrepreneur, founder, and CEO of Audeara, a company that creates and sells headphones for the hearing impaired.

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Dr. James worked in a range of fields before pursuing medicine, including at New York-based hedge fund Bay Harbour Capital and a prominent Hollywood production company.

Dr Fielding was based at the Royal Brisbane and Women's Hospital before leaving full-time clinical medicine to focus on the founding and development of his start-up, Audeara.

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During the episode we cover everything, including how James came from a career path as a doctor to the CEO he is now, what prompted the shift, and the highs and lows of being a founder and what it is like to run an ASX-listed business.

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Gregg Taylor (Salter Brothers): Are we seeing green shoots for high-growth, emerging Australian companies?

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In this episode, our Partner and Wealth Advisor Ryan Loehr speaks with Gregg Taylor from Salter Brothers.

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Gregg leads the equities investment team at Salter Brothers, a reputable Australian alternatives investment manager responsible for overseeing $3.5bn of assets for HNW investors and institutions.

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This episode is well suited to founders thinking about taking on a capital partner and key considerations; or investors wanting to understand some of the underappreciated opportunities in high-growth, emerging Australian companies.

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To discover more about each episode, head to ‘The Exchange by EWL Private Wealth’ on Apple Podcasts.

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Disclaimer:

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The information in this podcast series is for general financial educational purposes only, should not be considered financial advice and is only intended for wholesale clients. That means the information does not consider your objectives, financial situation or needs. You should consider if the information is appropriate for you and your needs. You should always consult your trusted licensed professional adviser before making any investment decision.

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One foot on throttle, another on the break.

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Whatever your political views, it is clear that fiscal and monetary policies in the US and Australia have been pulling in different directions. Record fiscal spending – and in the case of the US, a rapidly growing deficit – is occurring at the same time as the FED and RBA trying to be restrictive with monetary policy.?

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Will this be the dynamic for the rest of 2024 and beyond? In our opinion, the answer is a clear yes.?

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With the US election in November and cost of living relief all but certain in the Australian budget; it is fair enough to assume that any inflation move won’t be mitigated by a tightening in fiscal spending.?

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This leaves the FED and the RBA in a rather tight bind. Because governments are being called to provide so much stimulus, even with clear signs of stress in the market, there is the potential need to increase rates, or at least hold them for longer.?

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Thanks for reading! We’ll see you again next month.

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