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Edition: 372

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Welcome to Firstlinks Edition 372

  • 27 August 2020
  • 3

With hindsight, we are all excellent 'shoulda' investors. Looking back during the pandemic, opportunities look obvious. Retail investors who rely on professional fund managers must hope that late March presented a once-a-decade moment for investment teams to stop watching screens and reading broker reports and contemplate deeply a new future for target companies.

Will Baylis on dividends and accepting stock market risk

A diversified share portfolio should deliver 6% with franking, versus 1% on a term deposit. Should an investor accept the risk of shares during a recession and pandemic when interest rates are so low?

COVID-19 and the madness of crowds

57 million people die every year, including over 3 million from respiratory diseases. Why is COVID-19 allowed to panic nations around the world and destroy so many businesses and jobs?

A game plan for managing volatility in global equities

Global equity markets have experienced huge volatility during 2020. Investors are now looking at stretched large cap valuations but there are good opportunities in less well-known, smaller companies.

Are bond yields lower forever or is the Big Bang coming?

The signs are that bond yields could stay low for a long time. This has important implications for future returns, but are we heading for the Big Bang, the Big Crunch or the Steady State?

Ignore solar parity at your investing peril

With coal, gas and oil, the more we use, the deeper we need to dig and the more expensive energy becomes. Solar and battery power are on a technology curve: the more the world produces, the cheaper it becomes.

Why are companies raising capital during COVID?

Most investors in new capital raisings during COVID have been well-rewarded, and when investments match an ethical investing charter, it helps to position for a recovery as well as longer-term sustainability.

How are vaccines actually produced in bulk?

Amid all the reporting of COVID-19 cases and deaths, little is said on how vaccines are actually produced. Are they drugs, can we produce them in Australia, and how can millions of doses be rolled out?

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