A 2017 report by market research firm New World Wealth concluded that a record 82,000 millionaires moved to a new country in 2016, up 26% from 62,000 in 2015. The estimate is that approximately 100,000 millionaires will move country each year by 2018. A millionaire in this report is defined as those having at least […]
Below is a chart we presented at our most recent Annual General Meeting depicting the S&P/ASX 200 Resources Index over a sixteen-year period. Within this extended period, we see a resource ‘boom’, the Global Financial Crisis and subsequently the resources ‘bust’. This chart depicts the truly cyclical nature of resources and the large demand supply […]
In this article series by Karl Siegling, Cadence Capital Limited Managing Director and Portfolio Manager, we discuss several aspects of the investment process and how it actually works in practice. The articles cover topics like market psychology and fundamental analysis, and they aim to provide the reader with a first-hand view of how financial theory stacks […]
Currency and interest rates are currently playing a large role in the world economy, which should be no surprise because we are covering new ground in terms of record low rates and subsequent currency fluctuations. At present, 40 per cent of the developed world’s interest rates are negative. By contrast, Australia has one of the […]
Following Karl Siegling’s article in the May 2016 edition of Cuffelinks titled “Commodities: Has the trend changed?” we will look in detail at two of our current commodity positions – a short position in Rio Tinto (RIO) and a short position in Woodside Petroleum (WPL). Cadence is able to short sell stocks, which means we believe the price of the stock will […]
This article was originally written by Karl Siegling for Cuffelinks. On the 22 March 2016, Mr Richard Elman, Founder and Chairman of the Noble Group Limited was quoted on Bloomberg as saying: “We all know that commodities are cyclical, but predicting when that turning point comes is only possible with hindsight, especially with such excessive […]
We’ve written extensively about how we deal with the psychology of markets. Whilst it is nearly universally accepted to buy cheap stocks and sell expensive stocks, this simple concept can prove difficult to implement. We thought it might be useful to examine an example, Macquarie Group Limited (ASX: MQG), one of our larger positions, which is a […]
Quite clearly good management is important, but what are the attributes of good management?