Investing 101

Increased traffic volumes and higher earnings have provided valuation support for the infrastructure company, ClearBridge Investments’ Shane Hurst says, with the post-COVID-19 recovery positioning the business for solid growth.

Lending specialist Daniel Zwirn spoke candidly about investor “credit myths”, and the misunderstandings that hold people back in the selection and movement of assets in portfolio construction.

With economists expecting the Australian dollar to strengthen this year, investors are looking to currency-hedged funds to remove FX exposure that threatens to erode the value of their international investments.

Exchange-traded funds continued to attract inflows from investors in 2022, albeit at a slower pace thanks to rising interest rates and market volatility. Resources and mining-focused funds were clear standouts in a challenging year.

As the RBA’s rate hiking campaign appears to approach its peak, investors looking to lock in term deposits should shop around to find the best rates, analysts say, warning that the complacent risk missing out.

US technology stocks have suffered steep losses over the last year as interest rates have marched higher. But with the Fed now signalling reductions in future rate hikes, value could emerge in tech stocks with strong fundamentals.

Disruptor wealth platforms like HUB24, Netwealth and Praemium have been taking market share from the mostly bank-aligned platforms for years. While waning investor sentiment has hurt inflows recently, analysts say these platforms are still well positioned in the shift away from incumbents.

The market view is still too optimistic, according to the BlackRock Investment Institute, and investors aren’t truly considering the risk of a recession.

The traditional 60/40 portfolio mix of shares and bonds may be due a shakeup in 2023, as market participants look to add fixed-income exposure to help offset a potentially weak year for equities.

After equity markets recalibrated during a volatile 2022, the market is anticipating a tale of two halves in 2023. Investors should look for opportunities in established and high-quality global stocks, with a focus on corporate earnings.

A review of the top stories from the past year reflects investors’ continuing anxiety over the direction of markets as central banks continue their battle against inflation and geopolitical turmoil remains a constant. Many of the same issues appear likely to shape the next 12 months as well.

Increasing government expenditure on social infrastructure is driving huge levels of investment into the sector. There are now several options for retail and wholesale investors to gain exposure to this asset class, which was previously open only to institutional investors.