Welcome to the March instalment of the EW&L Monthly Newsletter.
Emanuel Whybourne & Loehr
We are taking a new approach to managing and building your wealth. Total transparency.
We trust that the cadence of the year is smoothly unfolding for all our valued clients, readers, and partners.
As we venture further into 2024, we're thrilled to unveil glimpses of what's in store, and the dynamic projects underway at EW&L. Keep an eye out as we explore insights, foster discussions, and present expert interviews, all crafted to equip you with the knowledge needed to make informed financial decisions.
We extend our gratitude for being an integral part of the EW&L community. Here's to a March brimming with fresh perspectives, lucrative opportunities, and collective achievements.
Understanding Long-Term Investing: The Reality of Price, Value, and Earnings Growth Beyond Short-Term Noise
"The stock market is designed to transfer money from the active to the patient.”
Welcome to 2024! At the beginning of each year, we publish a client note, choosing to share one key insight. This choice is always difficult. It’s difficult because there is always so much happening in the world. So much noise. Russia-Ukraine. Israel-Palestine. A widening conflict in the Middle East? How will this impact energy supply or shipping routes? China and Taiwan. The 2024 US Elections. A second term for Trump? Slowing economic growth from China and its potential property crisis. Uncertainty around monetary policy. Will rates go up or down? How could monetary policy impact property prices? What impact will artificial intelligence have on industry? On jobs? On humanity?
Despite these events – their importance – and potential implications, do they help us invest? In short, the answer is no.
People too often confuse trading with investing. The two are completely different and the above quote from Warren Buffet, despite its simplicity, is a critical reminder of this. Yes, a new conflict, a new president, and interest rates can impact prices in the short term. But across 3-5 years, are they the key driver of valuation or returns, or does the market move on?”
Read more from this insight from our Partner and Private Wealth Adviser, Ryan Loehr, on the EW&L blog.?
The Exchange Podcast Catch-Up:
Step into the new year with our latest podcast episodes, where we bridge the realms of finance, technology, and investment strategy.?
Here are the latest episodes from The Exchange Podcast:
Jonathan Armitage (Colonial First State CIO): The State of Markets – Listed or Unlisted?
Managing Partner Tim Whybourne caught up with Jonathan Armitage, Chief Investment Officer of CFS in their Sydney studio. They discuss everything from the current state of markets, to how CFS goes about constructing client portfolios.
领英推荐
Jeremiah Lane (KKR) – Unpacking Opportunities in Global Liquid Credit
In this episode we unpack the often-overlooked opportunities available across a range of different security types; where and how KKR can access favorable terms and why investors should be considering this asset class as part of their more aggressive fixed-income portfolios, or as a substitute to some of their equity allocation.
Two American Superstars in Australia this week: Taylor Swift and Mario Giannini!
In our latest episode, Managing Partner Craig Emanuel sits down with Mario Giannini, Co-Chairman of Hamilton Lane. Established in 1991, Hamilton Lane is one of the World’s largest and most respected Private Markets managers, directly managing more than $ 1.3 trillion AUD in assets globally.
To listen to these episodes – and other recent shows – subscribe on iTunes or Spotify.
Disclaimer:
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.
Is the Inflation Genie Safely Back in His Bottle?
We think it’s a fair question, given the focus of central banks over the last 18 months (and the effect interest rate rises have had across markets).
The answer though, is a complicated one.?
There’s little doubt that inflation growth has come down significantly globally, but it still appears to be hovering outside of the range that central banks want to bring it down to. This is likely to take some time – especially in Australia – to return to the ideal range.?
From the slowdown in China to the ongoing conflicts in the Middle East and Europe, and the potential effects of the US election; there are a myriad of macro factors that will impact inflation this year.?
Putting those hypotheticals aside though, the big question is more of CB’s focus. Will they shift to be more growth and jobs focus or remain committed to getting inflation back to range when making decisions on rates? This is an especially important question for the RBA and markets seem to believe that cuts could happen even with inflation still outside range.?
Like everything, the answer is complex, and ultimately smart investors will continue to implement their long-term strategies in whatever direction rates move in.?
Thanks for reading! We’ll see you again soon in our April newsletter edition.