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Benefiting From The Green Energy Movement

Two weeks ago we discussed the huge underlying changes occurring in the global automotive industry and how these long-term shifts were positively impacting the demand for lightweight aluminium – thus, buy Alumina (AWC). Based upon similar fundamental trends there has been uplift in demand for electric and hybrid powered vehicles globally with the biggest beneficiary being Tesla. Other manufacturers have had mixed success with electric vehicles, but mostly this has been due to a woeful product that is too expensive and with the recent fall in energy prices has failed to convince electric is better than combustion.

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Tuesday At The Close

Local shares lost their shine in the afternoon with the ASX 200 finishing the session unchanged amid views the RBA rate-cutting cycle may have come to an end. ANZ shares rallied after the bank reported better than expected half-year profit results.

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The New Asset Allocation Paradigm

Well-informed investors are discovering what institutional investors have long understood; that asset allocation, not security selection, is key to driving long-term investment results. Consequently, the most important decision an investor can make is now seen to be asset allocation. For a high performing portfolio, it has been proven that getting the right mix of assets is more impactful on successful performance than the individual securities chosen. Individual security selection is important but asset class selection is vital.

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Two Rules Of Thumb For Sector Investing

One of the benefits of using equity ETFs is that they enable investors to engage in broad market or sector investment strategies without having to decide which individual stocks to invest in. The question naturally arises: when should one sector be favoured over another? It turns out there are a two handy rules of thumb that might help investors with their deliberations.

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