Young Investors

Investing in Shares. The Way of the Future for Young Investors?

Australian wages are growing at a miserly 1.9%.  This rate has been declining since 2010 as it continues trending further downward.  Combine this with property prices growing at 4 times that rate and the opportunity for young Australians to enter the property market or get ahead financially is looking bleak. So what options are there[…]

June Swoon in Tech Stocks. Should we be Worried?

June Swoon in Tech Stocks. Should we be Worried? The US NASDAQ 100 is down almost 4.6% since hitting its all-time high of 5885 on 8 June 2017, to close last night at 5646. On the back of this sell-off, many commentators are suggesting that this could be the beginning of a major market sell-off[…]

Global Equity Markets on Solid Ground

With 98% of US S&P 500 companies having reported earnings for the March quarter, Mason Stevens Head of Equities, Marcus Tuck, provides his key takeaways: Aggregate profit growth was a very healthy 13.9%, the highest year-on-year growth since Q3 2011, where it recorded a 16.7% growth rate. 10 of 11 sectors reported profit growth with[…]

Language Tech Company Translates into Big Profits

Appen Ltd (ASX: APX), the data services and language technology company, has seen its share price soar 43% over the past 2 weeks on the back of a strong earnings result and a significant upgrade to its full year earnings guidance. APX is seeing significant increased demand for its high quality data for machine learning-based[…]

Chinese tech company up 35% in 2017. More returns to come!

After reporting quarterly earnings last Friday, shares in Alibaba Group Holding Ltd (NASD: BABA) are up 35% since January, and at UGC we believe this internet giant is only just getting started. BABA is an online and mobile commerce company operating in China and internationally. Founded by former English teacher Jack Ma, this company is[…]

How to Spot Market Tops: Interest Rate Spreads

Over the past several days, we discussed 4 ways to identify market tops: macroeconomic indicators, interest rate raising cycles, valuation metrics and market sentiment. Here, on the 5th and last part of this series, we will analyse interest rate spreads and see what they tell us about the current market. 1. High Yield Spreads Rapidly rising[…]

How to Spot Market Tops: Valuation Metrics

In previous articles, we discussed several ways to identify market tops. We already covered macroeconomic indicators and interest rate cycles. Here we will analyse valuation metrics and see what they tell us about the current stock market. Markets usually peak when there are significant signs of overvaluation. 1. Total market cap relative to GDP If we[…]

How to Spot Market Tops: Interest Rates

In previous articles, we discussed ways to spot stock market peaks. Here, we will show how interest rate increases by central banks usually precede market crashes. More specifically, we look at the relationship between the “federal funds rate”, which is set by the US central bank, and the S&P 500. Typically, the central bank raises[…]