Category: E – Oliver’s Insights

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4 steps to help protect portfolios against political risk

08 November 2017 4 steps to help protect portfolios against political risk When Australia’s High Court ruled deputy prime minister Barnaby Joyce ineligible to sit in Parliament because of his dual New Zealand citizenship, the decision briefly sent tremors through equity and currency markets. It was a clear reminder that political risk matters to markets. We face troubling political and geopolitical risk across the world: Trump, Brexit and, above all, the risk of nuclear confrontation …

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Aussie banks are OK but there’s better value overseas

Aussie banks are OK but there’s better value overseas 04 October 2017 Banks globally are better value than local banks for share market investors but our “big four” still don’t look overvalued, says Shane Oliver, AMP Capital head of Investment Strategy and Chief Economist. “Going forward in an absolute sense the banks look ok. P/Es [price earnings] multiples are a little under the market average multiples in Australia and dividend yields are still good.“There is …

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Passive Investments Have Rewards and Risks Alike

07 September 2017 Passive Investments Have Rewards and Risks Alike Passive investments such as index funds and exchange traded funds (ETFs) provide cheap access to global stockmarkets, but AMP Capital’s Head of Investment Strategy and Chief Economist, Shane Oliver, says they create risks of their own. “Yes there is a positive to passive investing, it gives you the underlying exposure and the fees are low,” Oliver says, adding that “a lot of effort goes into …

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Cryptocurrencies – Caution Needed

07 September 2017 Cryptocurrencies – Caution Needed Cryptocurrencies are generating a lot of interest from investors – helped in part by a near 2000 percent in the value of market leader – Bitcoin, but AMP Capital’s Shane Oliver is sitting on the fence.“No matter how many times its explained to me how it works I still struggle to completely understand it,” says Oliver, AMP Capital Head of Investment Strategy and Chief Economist. “One thing I …

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Finding the winners from new technology

16 August 2017 Finding the winners from new technology A revolution happening in the energy industry and there will be winners (and losers). That’s the word according to AMP Capital Head of Investment Strategy and Chief Economist Shane Oliver. “The massive reduction in the cost of generating sustainable energy, together with energy that can be stored in batteries as battery technology evolves… is revolutionising things,” says Oliver. The rise and rise of sustainable energy sources …

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How to make the most of investment and economic research

16 August 2017 How to make the most of investment and economic research In a world where people can be bombarded with information, AMP Capital Head of Investment Strategy and Chief Economist Shane Oliver recommends taking a strategic approach to investing. “If you are to be a successful investor you have to have an investment process,” says Oliver. The trick, he says, is cutting out the noise and sticking to the fundamentals. AMP Capital’s approach …

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Bubbles mean trouble

16 August 2017 Bubbles mean trouble What is a bubble? AMP Capital Head of Investment Strategy and Chief Economist Shane Oliver puts it down to two main factors. “The first thing is a degree of over valuation. That is a situation where the price of an asset has diverged dramatically from the underlying fundamentals of the asset. Share prices have risen dramatically relative to earnings and dividends, or property prices have risen dramatically compared to …

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Aussie equities still remain a good long-term bet

11 August 2017 Aussie equities still remain a good long-term bet Australian equities have been getting bad press with some investors warning they are significantly overvalued. The narrative goes that we’re in the midst of a housing bubble that will blow up and take the share market down with it. Like every story there are elements of truth to this, but if you silence the noise and take a long-term view – as most investors …

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Why listed real estate faces Amazon-like disruption

Why listed real estate faces Amazon-like disruption Investors have recently focussed on the impact of Amazon’s plan to roll out its full retail offering in Australia on local retailers. But fewer investors have been considering the impact of Amazon-style disruption – and other global social trends – on real estate. Global listed real estate has been a lynchpin of investor and client portfolios, generating strong income yield and capital growth. But just as has happened …

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Interest rates likely to remain on hold until economic growth improves

11 August 2017 Interest rates likely to remain on hold until economic growth improves There is little chance the Reserve Bank of Australia will hike interest rates in the next six months, even though property prices are at record highs in some markets, according to AMP Capital Head of Investment Strategy and Chief Economist Shane Oliver. “I can understand why people think maybe they should,” says Oliver. “But I think it’s a 2018 story, not …

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