During the recent market rout, the Montgomery Small Companies Fund picked up several high-quality small caps with solid growth potential at bargain prices. One standout is leading auto parts distributor, Bapcor (ASX:BAP), which has since rebounded strongly.
Last Wednesday, Federal Reserve Chairman Jay Powell issued an unequivocally dovish assessment of the US economy in the wake of the coronavirus pandemic.
Warren Buffett famously said that, to be a successful investor, you should be fearful when others are greedy, and greedy when others are fearful. I think his advice is especially relevant in today’s ‘risk on’ environment, in which the fear of missing out is usurping the fear of loss.
The government-imposed COVID-19 lockdown accelerated a number of social trends. One of those was our increasing preference for online shopping. Recent data shows that even though the lockdown pushed total retail sales off a cliff in April, online sales shot up. And one retailer – Kogan – stood out from the pack.
The government-imposed COVID-19 lockdown accelerated a number of social trends. One of those was our increasing preference for online shopping. Recent data shows that even though the lockdown pushed total retail sales off a cliff in April, online sales shot up. And one retailer – Kogan – stood out from the pack.
If you’re scratching your head over the market’s strong rebound since March, then join the club. Because there’s still a large cohort of economists and analysts who continue to see tough times ahead. I recently pointed to a definite recovery off the low levels of activity recorded during the COVID-19 lockdowns.
We often hear market pundits comment on expensive stocks that currently make no money, labelling them as “great shorts. ” The Teslas, Pelotons, and Snaps of the world are examples of this that are recognisable to most. But are they in fact great shorts?
COVID-19 has sent the global economy into recession. It will come as no surprise to readers that advertising is a cyclical industry linked to the macro economy. Generally speaking, when the economy is growing, advertising revenues are growing and when the economy is contracting, advertising revenues are contracting.
EML Payments (ASX:EML) is an exciting Fintech that delivers innovative payment processing technologies to organisations operating within many industries and countries. The business has weathered the COVID-19 lockdown much better than feared, and is now ideally placed to benefit as global economies reopen and the structural migration trend towards digital payments accelerates.
The power of compounding, or the “eighth wonder of the world” as Albert Einstein called it, can be counterintuitive sometimes. Small increases in annual returns, when compounded over long periods of time, result in very large increases in one’s investment. See the table below, for example.
Around 12 months ago, we noted that Avita Medical (ASX:AVH) – which provides a novel approach to skin regeneration – was a business worth keeping tabs on. Although its share price has felt the effects of the COVID-19 market sell-off, our positive view of the company has not changed.
