Investors Voice Category: Equity

Exchange-traded Treasury bonds (eTBs) are quoted and traded on the Australian Stock Exchange (ASX) in the same way as equities (shares) and thus offer a readily accessible way to invest in the Bonds. eTBs can be regarded as tradeable term deposits.

Global listed property REITs and listed infrastructure are considered defensive, income-generating equities, offering a high dividend yield, underpinned by stable inflation-linked cash flows, and diversification from global equities.

When making an investment, it’s vital to determine how it will fit into your portfolio and whether it meets the strategy and objectives you set for it.

With the stock market again reaching dizzying heights, at the same time that corporate earnings and global economies are slowing, it’s worth asking whether equity investors have had it too good for too long.

While Australian infrastructure upgrades move at a snail’s pace, completely the opposite is happening in China where major investments in critical transport infrastructure, particularly airports, will drive an Asian tourism boom the likes of which has not been seen since the Japanese tourism boom of the 1990s.

While the current bout of weakness may only cause the market to fall 5-10 per cent, we believe it may be a dress rehearsal for a much more sinister period in the next 12-24 months.