Lauren Hua

Sector Rotation Strategies

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Sector rotation strategies can be used by investors to maximise portfolio returns. This is achieved by identifying which sectors perform the best in different economic environments. Some sectors perform very well when the economy is booming while others sectors don’t do as well. Identifying these sectors can give the investor an edge to share performance. Early Cycle Phase: Features of this phase: Low inflation, low increasing interest rates. The economy may have just recovered from a recession. Low interest rates …

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What are the safe havens for investors?

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In times of extreme volatility, investors are looking to put their money in “safe havens” to protect their capital. The term safe haven in investing means an asset class where it has a higher chance of maintaining its value compared to riskier assets. In this article we will list some of the common safe havens. Government Bonds Yields on Government Bonds have recently fallen. This means that the price of bonds has gone up reflecting the increased demand. Investors are …

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What do low treasury bond yields indicate?

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Successful share market investors will also keep an eye on bond yields. This is because it is an indication on how investors perceive the economy. Yields on US treasury bonds have recently fallen to historical lows, so what does this say about how investors perceive the state of the economy? Inverse relationship Bond prices and bond yields move in opposite directions. When investors flock to take positions in bonds, this causes bond prices to rise as demand increases. However, it …

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Possible strategies for a volatile market

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Australian share markets have recently seen a spike in volatility due to fears over Coronavirus. No-one knows exactly how it can play out from here. Outside of complicated hedging strategies, there are some basic actions that the average investor can take to minimise their downside until the dust settles. 1.Get in to Cash When the stock breaks its uptrend and becomes volatile, it can be best to move a portion of your portfolio in cash.  We wrote an article recently …

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Stocks to offload during the coronavirus

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The market has recently experienced some panic selling due to the coronavirus. It escalated when the cases and deaths were reports in Italy. The level of concern around this virus has heightened and this has been reflected in the level of fear in the market. This is the list of stocks which are most affected by the coronavirus crisis. 1.Stocks with high beta Stocks with a high beta move much more than the market. That is, stocks with beta which …

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