An inflection point for Aussie shares

An inflection point for Aussie shares

In recent months, much has been said on growth versus value, and tech stocks versus cyclical stocks. But focusing on these labels misses the true underlying driver of these trends: duration. 

But what exactly is duration? A ‘long duration’ asset simply means one where a large portion of the returns are expected to happen in the distant future. These stocks are highly sensitive to changes in long-term interest rates, and they’ve taken a pounding so far in 2021.

“Very small moves in interest rates can have outsized impacts on valuations. Our concern is that a steepening yield curve could cause these businesses to be repriced quite quickly,” explains David Moberley from Paradice Investment Management.

Long-term interest rates are on the rise, and according to some experts, this tend is likely to stick around. With many of the ASX’s winners in recent years firmly from the ‘long duration’ category, and many of the underperformers in the ‘short duration’ category, this could be an inflection point for Australian equities.

In this episode of The Rules of Investing podcast, we discuss how his experience at a start-up helped him as an analyst, why Australian gas stocks are well placed for further appreciation, and we hear why CSL’s collection problems are likely to just be transitory.

Show More

Backward
Play
Forward
1x speed
  • 0.5
  • 1
  • 1.5
  • 2
Other episodes
Invest in what you know, avoid what you don’t: Lessons from a Hall of Fame fund manager

Invest in what you know, avoid what you don’t: Lessons from a Hall of Fame fund manager

Despite all of his success, Morry Waked has remained relatively under the radar. He’s not one to boast of his achievements, and he’s very rarely fronted the media.
At Livewire, we dedicate ourselves to finding the best fund managers in Australia - an...

289 downloads Rules of Investing Oct 27, 2023
29m
Emma Fisher: Why it pays to be bullish (and the most outstanding idea on the ASX today)

Emma Fisher: Why it pays to be bullish (and the most outstanding idea on the ASX today)

The times when a company is dominating headlines (for all the wrong reasons) are the best time to buy. 
Take Medibank Private (ASX: MPL), for example, which you may remember, was embroiled in a data breach in October 2022. 
On the news, the stock's s...

483 downloads Rules of Investing Oct 05, 2023
48m
Matthew Kidman: Get ready to run with the bulls

Matthew Kidman: Get ready to run with the bulls

Matthew Kidman is a well-known entity to readers of Livewire, as host of Success and More Interesting Stuff, Buy Hold Sell, and most recently, Livewire Live.
Finally, we got him in the hot seat to run us through his own journey into funds management,...

486 downloads Rules of Investing Sep 28, 2023
1h 9m
Hedge fund managers never name their shorts. This one does…

Hedge fund managers never name their shorts. This one does…

Short sellers have had a tough time of it over the past decade. The era of free money lifted all boats, including companies that would perhaps otherwise be candidates for short selling. 
Today's market is radically different. Central banks have lifte...

306 downloads Rules of Investing Sep 22, 2023
46m
Bob Desmond names his ”forever” stock

Bob Desmond names his ”forever” stock

We're constantly told that diversification is the only free lunch in finance. Yet most of the world's top investors choose not to eat it. 
Warren Buffett, Charlie Munger, John Maynard Keynes, Lou Simpson, George Soros. All run concentrated portfolios...

312 downloads Rules of Investing Sep 15, 2023
44m
Trailer: Bob Desmond, Claremont Global

Trailer: Bob Desmond, Claremont Global

We're constantly told that diversification is the only free lunch in finance. Yet most of the world's top investors choose not to eat it. Warren Buffett, Charlie Munger, John Maynard Keynes, Lou Simpson, George Soros. All run concentrated portfolios....

311 downloads Rules of Investing Sep 13, 2023
2m
3 reasons why the US economy has achieved a miraculous ”soft landing”

3 reasons why the US economy has achieved a miraculous ”soft landing”

Ten years ago, investing was an easy game. Thanks to rates near zero and reckless fiscal spending, markets were drunk on liquidity.
There was multiple expansion across the board, and winning was relatively easy. Pick an index, sit back and let multip...

406 downloads Rules of Investing Aug 25, 2023
38m
Blackwattle’s Ray David is raising red flags about market darling CSL

Blackwattle’s Ray David is raising red flags about market darling CSL

There are a select few stocks on the ASX that boast true market darling status. Whereas other stocks sell off at the hint of bad news, market darlings seem to emit an aura effect on markets that itself attracts investment.
Biotech company CSL is argu...

403 downloads Rules of Investing Aug 18, 2023
44m
Trailer: Blackwattle’s Ray David is raising red flags about market darling CSL

Trailer: Blackwattle’s Ray David is raising red flags about market darling CSL

Hello and welcome to the Rules of Investing, brought to you by Livewire Markets, I’m your host David Thornton.
On the upcoming episode I sit down with Ray David, Portfolio Manager and Partner at Blackwattle Investment Partners. Alongside Joseph Koh, ...

376 downloads Rules of Investing Aug 16, 2023
3m
Suggested Stories

Who would have guessed laws required companies to request...

DisinterestedSep 25, 2022
0 mins read

The question of whether abortion should be legal has been...

DanielJun 26, 2022
4 mins read

Four-time major winner Brooks Koepka has also left the PG...

sportislife15Jun 26, 2022
0 mins read

The subsidisation of unreliable “renewable” power is why ...

DisinterestedJun 19, 2022
0 mins read

LIV Golf is off to a good start, whatever the PGA Tour an...

sportislife15Jun 11, 2022
4 mins read

All governments eventually lose power, but the Liberal Pa...

DanielMay 29, 2022
4 mins read