INTRODUCING PRIVATE CREDIT AND THE AURA HIGH YIELD SME FUND
ARE YOU SEEKING INCOME FROM YOUR INVESTMENT PORTFOLIO? WE HOSTED A WEBINAR WITH BRETT CRAIG, PORTFOLIO MANAGER OF THE AURA HIGH YIELD SME FUND WHERE HE INTRODUCED PRIVATE CREDIT AS AN EMERGING ASSET CLASS FOR INVESTORS SEEKING RELIABLE INCOME.
Many commentators point to the six months to June 2022 as being one of the worst June half-year periods for the performance of both the share market and the bond market for several decades. As many economies saw their inflation rate hit a 40-year high, there was an aggressive sell-off in bond markets around the world.
With many market watchers expecting the Reserve Bank of Australia (RBA) to keep raising interest rates, high growth companies with no current earnings, but with potential for strong growth, have been heavily sold off. But, due to the economic impact, I’m not so sure the RBA will raise interest rates by as much as predicted.
Warren Buffett once observed that “In stocks, it’s the only place where, when things go on sale, people get unhappy. ” Which is ironic, because bear markets give long-term investors a wonderful opportunity to make market-beating returns. And the lower the market falls, the more excited we should be about buying shares in quality businesses at knock-down prices.
Roger joined Alec Renehan and Bryce Leske on the Equity Mates Investing Podcast to discuss what is driving the sell off in share markets across the world. The enormous compression of price-to-earnings (P/E) ratios generally occurs when interest rises, why is this correlated and they discuss high quality companies for your watchlist.