MB fund

9

MB Fund rock-n-roll thunder tour hits Sydney tonight!

The MB Fund rock-n-roll thunder tour rolls into Sydney tonight.  The Brisbane and Adelaide legs left screaming teens prostrate on the tarmac… OK, not really, but they were very well received with lively discussion on the prospects for house prices, the Australian dollar, interest rates, bitcoin, the economy, shares, population and the political economy. It was terrific

29

MB Fund does Brisvegas

Apologies for light posting this morning. I’m fresh off the plane from Brisvegas where the MB Fund rock-n-roll thunder tour performed last night. Thanks everyone for coming. It was great to meet you and another round of terrific discussion. Next it is on to Sydney where we plan to tear the financial market towers from

6

MB Fund seminar in Adelaide tomorrow night!

A reminder that if you’re in Adelaide tomorrow night your social standing is at risk if you miss the hottest event since The Beatles visited in 1964. Presentations will include: LVO dishing dirt on the disaster that is mainstream economics; DLS dishing dirt on the disaster that is market economics; DK on how to make a

1

Asset allocation vs stock selection in portfolio returns

There was another entry into the academic statistical war that makes up the debate between whether asset allocation or stock selection is more important from ReSolve Asset Management recently. The full paper is technical, full of principle component analysis and the discussion of the appropriate correlations to use between markets (if that sort of thing appeals

79

Announcing the MB Fund seminar series

The chances are that you read Macrobusiness for no-nonsense, unbiased insight into the most pertinent issues in today’s macroeconomic climate. So do over 120,000 other people around the world per month. Now you have a chance to meet the team in person, talk investments, hear first hand about how the popular blog was founded, how

2

International shares are less volatile than Australian

Investing can be a volatile ride, the last few days have reminded us. The last few days have also reminded us why holding international equities is often beneficial for Australian investors – the Australian dollar acts as a shock absorber on returns when volatility hits, which is exactly the opposite effect that international investors get investing

19

Where to invest internationally

Given: (1) a spike in the AUD to 80c vs the USD (2) an increase in the interest in our international fund and (3) that our tactical asset allocation portfolios remain heavily overweight international, I thought it worth expanding on our international equities portfolio and its exposures. It’s a tough time to be making investment

49

Are electric vehicles cost-competitive?

The biggest risk to the thoughts I have presented on energy costs are the assumptions about the cost of batteries. Battery costs have been shrinking at 20% per annum for the last few years. If that cost improvement continues for the next 5-10 years then disruption for the energy sector will have arrived. If it

6

Spaceship deemed Space Cowboy

People in glass houses shouldn’t throw stones, so are we going to let Graham Hand toss a few rocks for us at of one of the larger players in the online superannuation space, Spaceship: Spaceship recently said it had almost reached $100 million under management, an incredible amount for a startup. On 1 June 2017, The Australian

20

Energy/Battery price update

Last week we got an update from the US EIA on the growing differential between electricity prices throughout the day – the spread is now out to $45/mWh between prices at 1pm and prices at 8pm: Source: EIA Given this, it is worth a quick update of where prices stand in our journey to energy

7

Are oil stocks cheap?

Quick chart from the Wall Street Journal / BMI overnight asking the question: Are energy stocks undervalued?   The answer is no. No, they aren’t. And even if oil stocks were undervalued this is precisely the wrong valuation chart to look at. I’m not saying the Price to Book ratio shown above won’t rise –

3

Robo-advice conflicts

Bloomberg ran a story this week about conflicts of interest in the robo-advice world with a few choice digs: Some of the big banks’ new algorithmic programs may favor funds from companies that pay the banks millions of dollars for access to their wealthy clients. … There’s a risk that the banks’ robo programs could

21

Would you like ethics with that?

Close watchers of Macrobusiness will be aware that after a year of set-up we recently launched a fund to implement the macroeconomic themes for readers in the market. When putting together an offer like this to such a broad readership, there are always going to be surprises. One area that offered such a surprise is the

14

How do the rich get richer quicker?

There are a few studies that show that the richer you are the better your investment returns – Thomas Piketty the French economist is probably the most well-known author in this space. A recent Vox article digs into these returns using detailed Swedish data and essentially finds the same thing. The top 5-10% of households

43

Why property is such a compelling investment in an SMSF

There is sometimes confusion about the returns available on property in a self-managed super fund (SMSF) – especially as the mathematics starts to get confusing with relative rates of return, real vs nominal and opportunity cost vs risk, before tax and after tax returns. But I have a much easier way to explain why it

1

Westpac sings from MB’s bearish Australia hymn sheet

Nice video here of Westpac’s Justin Smirk on the outlook for China, iron ore and the Australian dollar: Absolutely right. Westpac’s AUD fair value is already stretched and getting stretcheder: The MB Fund offers you the perfect vehicle to maximise returns via a temporary rise  in the Aussie dollar in its pure international equities portfolio of 50 hand-picked stocks:

26

Why does the MB Fund own some banks and miners?

I’ve had a number of discussions with investors over the last few weeks about investing in the Macrobusiness fund versus “do it yourself” investing and thought it worth aggregating the discussions into a post. Part of what I want to do with the MacroBusiness fund is to de-mystify portfolio investing. Many parts of investing are

81

Welcome to the MacroBusiness Fund

Some of you will already know but let’s make it official. The MacroBusiness Fund is open for business. This is the culmination of a decade long dream for some at MB so congratulations all around. Let’s begin with a description of what the fund is offering and how. There are six funds operating through the

22

Macquarie forecasts ASX 10000

Via the AFR today comes some serious chutzpah: Australia’s sharemarket could jump by as much two thirds over the next decade, underpinned by a booming superannuation sector and the nation’s status as a “growth haven”, according to a new report by Macquarie Research. Jason Todd, head of Australian macro-economic research at Macquarie, said Australia’s super

11

Why Australian fundies are failing dismally

Via the AFR: Australia’s most successful and well-known stock pickers are under pressure as active managers fail to perform and investors opt for the safety and certainty of passively managed index funds. More than three-quarters of active large cap equity funds in Australia underperformed the indices they are measured against in calendar 2016, according to S&P