Peter Warnes and the 2021 Forecast

--  |   18/12/2020 Text size  Decrease  Increase   |  
<p><strong>Lex Hall: </strong>2020 has been a year of records. It's been a year of despair and also euphoria. What will 2021 look like? With us to discuss his forecast is Peter Warnes.</p> <p>Peter, welcome to the end of a tumultuous year.</p> <p><strong>Peter Warnes: </strong>Yeah, thanks, Lex. It certainly has been tumultuous and hopefully, it's past us, but we'll see what happens.</p> <p><strong>Hall: </strong>We're back to square one as you were telling me beforehand. Is there any upside next year? Can people find any opportunities?</p> <p><strong>Warnes: </strong>Yeah, well, I think there will be. As you said, we're back to square one basically exactly as of close yesterday. And I think the momentum that's there in the markets at the moment will push this market higher, Australian market and global markets. But 2021 won't be a repeat of 2020 hopefully, but it will be one where you have to be very, very aware and you have to be aware of what's the likelihood of another problem in terms of the Biden administration, are they going to get an easy ride, I don't think so, and what happens economically in terms of the recovery and the sustainability of it when things start normalizing. So, 2021 is going to be a very interesting year, but I do think in the first quarter at least, you'll probably see these markets continue to move not spectacularly higher but higher.</p> <p><strong>Hall: </strong>Okay. We'll get onto the Biden administration a little later and some other macro themes if you don't mind. Let's talk about the local equity market first of all. In the forecast, which is out today, you talk about some of the sectors that you see as overvalued and some that are undervalued. Just give us an idea of what you see there.</p> <p><strong>Warnes: </strong>Yeah, well, the teams have worked hard on trying to get their forecast right for 2021, but also longer term and see how these things, again, will normalize because 2020 there was a lot of pull-forward demand and there were abnormal forces out there that actually drove these markets, firstly, down and then certainly, the recovery very, very strong. So, we have to be aware of those. It's very, very dangerous to extrapolate from either low points or high points ever. You don't want to do that.</p> <p>So, our guys are saying, well, in terms of retail and in metals and mining, those things do look, on a long-term basis, look overvalued. One, because of what's happened with retail sales, we know why, but it's not sustainable. Those growth rates aren't sustainable. And so, we normalize those and look longer term.</p> <p><strong>Hall: </strong>On that speaking of retail, I did a screen the other day on our 11 wide moat stocks and top of the list was Wesfarmers which returned 23% which was streets ahead of all the others.</p> <p><strong>Warnes: </strong>Yes.</p> <p><strong>Hall: </strong>Which tells the story I suppose.</p> <p><strong>Warnes: </strong>Well, don't forget, I mean, it's a Bunnings story and came out that's quite well. But the smaller areas of Wesfarmers that are retail exposed, Officeworks, those three have done very, very well in a COVID environment.</p> <p><strong>Hall:</strong> Yeah.</p> <p><strong>Warnes: </strong>Bunnings, I believe, will continue to do very, very well going forward in the DIY space which they basically own and but it really is a very, very fragmented market. I mean, they would probably have close to 30% of that market and they are the dominant stakeholder, which tells you it's fragmented. And I believe &ndash; because I think the economic recovery is not going to be as robust or sustainable at rates we've just seen for a little while, there will be some business failures, particularly in the small end of the hardware market, and they will pick up that market share and continue to grow market share in my opinion. And so, that's the driving force in Wesfarmers.</p> <p><strong>Hall:</strong> Okay. You've been telling us all year to sort of squirrel away a bit of cash. Where should people be deploying it do you think?</p> <p><strong>Warnes: </strong>Well, I think you've got to wait for the opportunities. I wouldn't be putting more money into the market right now. If you've got cash, and I certainly have got cash, you look for the opportunities when kind of a March reemerges. I'm not saying March like we've got a bear market in '20, it drops 20% in a month. What I'm saying is, you buy the market when the market is on the back foot not on the front foot. And so, you got to take that opportunity and the cash gives you the optionality to do that. If you haven't got cash, you can't take advantage of it. You have to do something else to raise the cash. And the time &ndash; the window of opportunity can be very, very narrow and short. And so, you have to have that to be able to push the button straight away, and that's in my opinion.</p> <p>So, I think the thematics that I like, that I &ndash; looking for the long-term tailwinds, it won't disturb now. The government every three years, no matter which government in, is always fiddling with superannuation and they will continue to fiddle because it's a big cash pool they can't keep their hands off. But the regulations are going to change to look at the retirement phase of superannuation, not so much the accumulation phase, the retirement phase because that's where more and more of our population is going at a faster rate than most of the demographic within the population age group. We're aging quicker, right? That's a silly statement to make. We're aging &ndash; there's more people aging than there are being born, if you like. The fertility rate is very, very low.</p> <p>So, the government now is saying, hang on a second, we've got to start looking at people in the retirement phase. Well, we don't want them on the government (team). If we can keep them off the government (team) or partially on the (team), then that's as a country we're better off. So, the regulations are going to tighten up is that what advisors have got to do and what trustees have got to do to look after people in retirement, to make sure that the income is sustainable, and the income stream is all is reliable. And that, to me, sends me into the annuity space and in the annuity space there's one company there that stands out in my opinion. And I've declared an interest, but I've had an interest there for a while, and I've been telling our subscribers, I think, basically all year to be in Challenger after March. And so, they've been there, have a 3 in front of them, now pushing towards 6. Our fair value has got a 7 in front of it. There's still room for it to go back to, in my opinion to fair value and then probably move higher ultimately. But the next few years they're going to be in the right space. So, retirement is a tailwind for the companies that are going to service that space.</p> <p>Elsewhere, I think, again, because of fiscal stimulus we are going to build a lot more infrastructure. I would just wish we could build it quicker. Badgerys Creek is taking 10 years to build. I think I mentioned to you before. China has built 15 international airports in 10 years and we're going to take 10 years to build one. But still and all the companies exposed to those &ndash; I mean, the CIMIC we still like, is in the 4-Star range. Again, I've declared an interest and we have been recommending this to subscribers for a little while as well when they were kind of near 20.</p> <p>The insurance sector is coming up as slightly undervalued because of things that happened with IAG and what have you. But I'd be a little bit careful there. Again, you could probably dribble some money in there, but I don't think there's a big tailwind there. Yes, premiums are going to go up. But does that mean that people won't insure? And if premiums go up who's the winner? Initially the insurance companies will, but what will happen is that if their rates of return go up, then more capital comes into the industry and the picnic will be a one loaf picnic rather than a 10-loaf picnic. And so, I think you've got to be at least be a little cautious, because one is insurance, it's insuring risk and you want to be trying to &ndash; you want to de-risk your choices, if you like. It's undervalued, but again, it's the price at which you buy these shares at.</p> <p><strong>Hall:</strong> Okay. And selling, what should we be trimming do you think?</p> <p><strong>Warnes: </strong>Well, because of the macros, I think that the &ndash; even though I've been positive on China and what have you, and even though we haven't been able to &ndash; our longer-term forecast for the iron ore prices is low, and so we've missed the &ndash; basically missed that that move, I do think that going forward, not next year, but maybe later next year that China will start backing off on infrastructure.</p> <p><strong>Hall:</strong> Yeah.</p> <p><strong>Warnes: </strong>And so, I think these gains, you should be taking a bit of money off the table in the markets.</p> <p><strong>Hall:</strong> I might just promote a question that I had on that because you talk about Australia's overreliance on China. Is there an answer to that?</p> <p><strong>Warnes: </strong>Well, in the short term, there's not. And you saw what the CEO of Fortescue said the other day. 87% of Australia's iron ore went to China. Over 50% of our total country's exports go to China of which obviously iron ore dominates. We are overexposed to China. And so, how you de-emphasize that or get &ndash; that concentration risk has to be addressed by companies, by individuals and by governments. How you do it is not an easy solution. And don't forget China is trying to become more and more self-sufficient because they probably can. Politically they can basically, if you don't agree with them, well, you probably won't be found for a while. But the thing is that we have a democratic society and we can't. I mean, given what's happened with wine and barley and cotton and what have you, we can just say, okay, we're not sending any iron to China. Well, we can't do that. We've put BHP, Rio, Fortescue and all their workers out of business. So, we can't do that. They can. We can't.</p> <p><strong>Hall:</strong> Right. So, it's not a matter of just finding other customers in the region?</p> <p><strong>Warnes: </strong>Well, how do you find other customers for 87% of your iron ore output? You can't. And story is you can't.</p> <p><strong>Hall:</strong> Yeah, okay. Let's talk about central banks because that's been such a dominant theme. Do you think central banks will continue to keep rates very low even as growth recovers?</p> <p><strong>Warnes: </strong>Well, they've indicated they will. But never say never.</p> <p><strong>Hall:</strong> Because there's a nice line you say, cut interest rates and throw money at it has been the prescription despite the different ailments. Will that&hellip;</p> <p><strong>Warnes: </strong>Well, that's right. I mean, all we've done since 2010 basically, the GFC, is that they have thrown money at a problem, right? They've either printed it, number one, then through QE, asset purchase programs and then, obviously, driving interest rates down. So, they create the liquidity and then drive the price of that liquidity down. They want to make &ndash; the liquidity is there so the financial system can operate efficiently and effectively. If there's no &ndash; but we haven't had a credit squeeze since I don't know when, right? And so, there's a surplus of money out there and they've created it. And what they've also created is, it's been &ndash; that liquidity has been misdirected. It hasn't gone to the areas that they would want it to go.</p> <p>Business has not invested for 10 years basically. Yes, in Australia the resources and energy space have. But generally speaking, if you look at how much business has invested in hard assets, it's basically been pretty ordinary. And in the U.S. similarly, those companies went and used these debt markets and the liquidity and the price of that liquidity to buy back shares, to keep dividends higher, all this type of stuff. But the third pot, if you like, the free cash flow pot, of growth CapEx has not increased dramatically, which is what the central banks wanted. Now, that liquidity is also being used to push up risk assets and mostly equity markets. But in the U.S. in particular, and here as well, it also has funded and being responsible for a widening of the gap between the income and wealth across the demographic. The have nots and the haves, the gap is getting wider. In the U.S., particularly given the division there, that is going to be a major problem and the central banks have been responsible for it.</p> <p><strong>Hall:</strong> Let's turn to the U.S. because I know you've got some strong thoughts on that. 2020 was marked by COVID-19. It was also marked by the Democrats coming into power, we presume on January 21 our time. What does a Biden presidency mean for global markets do you think and more broadly, geopolitically?</p> <p><strong>Warnes: </strong>Well, I mean, geopolitically, you would expect the tension in China and U.S. to come off the boil a little bit. I mean, it couldn't get &ndash; it's over 100 degrees already and so it will come back for sure. That's a positive. But don't forget it's not going to be an easy &ndash; look, the Republicans are at control of Senate. And it's not going to be an easy free kick for the Biden administration. They can go and bring policies into place and what have you. But they've got a &ndash; it's going to be more bipartisanship. If you want that economy and that country to grow and grow as it should, you need cohesion and you need solidarity. You haven't got either at the moment from the man in the street corporately or in Washington. There is no cohesion and there's no solidarity. So, until you get that this is not a walk in the park. His administration and his West Wing will be asked a lot of questions over the next four years and I don't think they will have the answers or most of the answers.</p> <p><strong>Hall:</strong> And the employment situation in the U.S.</p> <p><strong>Warnes: </strong>Well, I think the biggest problem all developed economies will face and even China is employment or unemployment coming out of COVID. In the U.S., we've still got 10.7 million people out of work. What you've seen over the last few months is that jobs created falling on a monthly basis because there's still COVID out there and it's rampant and jobless claims obviously are still going higher. But there's 10 million. They lost 22 million. They've still got 10.7 million to get back. We lost just over a million. We have to get back another 650,000. Yes, Victoria reopening will help or whatever. But I think it's not &ndash; again, it's not a walk in the park. Getting those people back and re-hired is going to be very, very difficult and it will not happen in 2021. We'll make some inroads, but there will be still a lot of people unemployed this time next year. And that's the major problem. You can see all the fiscal policy being thrown and money being thrown at it. This is fiscal policy, not the central banks. The governments throwing money is to get jobs and create jobs.</p> <p><strong>Hall:</strong> Okay. Well, on that note, thank you very much for all your analysis and tips this year. It's been great.</p> <p><strong>Warnes: </strong>Pleasure, Lex. And I just like to wish all our subscribers a happy and a safe Christmas and a healthy and hopefully, not so anxious 2021.</p> <p><strong>Hall:</strong> Here's to that. I'm Lex Hall for Morningstar. Thanks for watching and all the best.</p>

Video Archive...

Weighing up the Endeavour IPO
18/06/2021  A wide moat and attractive dividend potential are among the key takeaways of Woolworth's decision to demerge from the liquor and hospitality group.
'Then we got hit with the equivalent of a war'
15/06/2021  Lazard Asset Management's Warryn Robertson explains how companies in the Global Equity Franchise fund have adjusted to covid, and assesses the threat of rising inflation.
Understanding Magellan's active ETF strategy
11/06/2021  Magellan's Craig Wright tells Emma Rapaport why it is leading the charge in the active ETF arena and how its global equity product works.
3 off-the-radar small caps
10/06/2021  Callum Burns of ICE Investors explains his conviction in pharmaceutical distributor Ebos, PSC Insurance Group, and elite sports analytics provider Catapult.
Small cap gems and how to find them
09/06/2021  Callum Burns explains how ICE Investors identifies companies with original products and sticky customer bases.
Stock of the Week:
08/06/2021  They’re building an empire.
3 oil stocks we still like
07/06/2021  A year ago the oil price went negative. How have oil giants handled the past 12 months and what's the outlook from here? Morningstar analyst Allen Good explains.
Considering crypto? Here's what to think about
04/06/2021  As the investment world goes crazy for crypto, Morningstar Investment Management's Dan Kemp explains what to consider before putting it in your portfolio
Why we like Wizz Air
03/06/2021  The airline sector is set to recover as international travel resumes. Morningstar analysts think Wizz Air offer the best opportunity among low-cost carriers.
3 global infrastructure picks
28/05/2021  4D Infrastructure's Sarah Shaw outlines the investment case for Spanish multinationals Cellnex, and Iberdrola, and the potential of Mexican airports.
Are crypto ETFs coming?
28/05/2021  The SEC continues to sort out its regulatory concerns.
Stock of the Week: Apple
27/05/2021  We’re raising our fair value as sales hit new highs—but investors need to put it in perspective, says Andrew Willis.
Opportunities in global infrastructure
25/05/2021  Covid-19 has enhanced rather than impeded the future for global infrastructure, says Sarah Shaw of 4D Infrastructure.
Tribeca's eye for Domain
24/05/2021  Tribeca's Jun Bei Liu also explains why she sees opportunity in sleep apnea specialist ResMed as well as Treasury Wine Estates.
Stocks for emerging markets
19/05/2021  American Century Investment's Patricia Ribeiro sees growth in Chinese battery technology, biologics, and building materials in Latin America.
2 stocks for the rise of the robots
18/05/2021  Robotics is a fast-growing area of tech, creating opportunities in medical, logistics and life sciences sectors and much more.
Square: Stock of the week
18/05/2021  Square's Bitcoin purchase is more marketing than operations
Tesla: Stock of the week
10/05/2021  If Elon Musk ends up delivering, we might need to raise our fair value to US$1500 a share.
Why Tribeca's so upbeat on stocks
07/05/2021  Banks and resources are poised to deliver dividends, and Treasury Wine Estates and BNPL are worth a look, says Jun Bei Liu of Tribeca's Alpha Plus long/short fund.
Looking for value in emerging markets
05/05/2021  Digital banking, ecommerce and 5G are among the key trends set for rapid growth, says Patricia Ribeiro of American Century Investments.
Cash slashed, Aussie equities up: Why Morningstar updates Model ETF portfolios
04/05/2021  Analysts have made changes to the fixed interest, property, cash and equity allocations of Morningstar's Model ETF Portfolios to take advantage of the current market environment. They've also refreshed some of the funds in the portfolio.
Investing basics: Explaining the disconnect between the stock market and the economy
30/04/2021  The stock market and the economy are not the same. Here's why.
Why deforestation matters for investors
23/04/2021  EARTH DAY 2021: Why should investors care about deforestation and how can it can be taken into account within an investment portfolio? 
The silent killer: How to prepare your portfolio for inflation
21/04/2021  Do investors need to worry about inflation, and how do you prep your portfolio to protect you from it? Morningstar Investment Management's Dan Kemp explains.
ESG investing is about more than feeling good: Morningstar equity research
20/04/2021  Values-based investing is ultimately up to the investor.
2 US wide-moat stocks to buy on a dip
16/04/2021 and ServiceNow are looking increasingly attractive.
Fidelity's Kate Howitt names her 3 top stocks for 2021
15/04/2021  Investment tips from Australian equities fund manager Kate Howitt.
Back to basics: What is income investing?
14/04/2021  What is income investing, why is it important and which investors should focus on it? Morningstar Investment Management's Dan Kemp has the answers.
Hunting for pockets of value in an overheated market: Morningstar
13/04/2021  Morningstar equity strategist Gareth James discusses the great value rotation, why he believes the Australian share market is overvalued and where opportunities still lie for hungry investors.
Vaccine rollout drives energy's rise
12/04/2021  But the sector's current tailwinds are likely unsustainable, so investors should prioritise high-quality businesses with stable balance sheets, says Morningstar's Dave Meats.
Finding value with Kate Howitt
08/04/2021  Kate Howitt oversees Fidelity’s Australian Opportunities fund. She discusses her investing approach, the outlook and where she sees value.
Investing for millennials
07/04/2021  Goldman Sachs's Laura Destribats talks about the millennial investment trend, and why tech and experiences are so important to this generation.
What if I want to buy Bitcoin?
06/04/2021  Remember that the returns on speculative assets like Bitcoin are high risk
EGG, SGF, ZBRA: Foraging for the unloved gems
01/04/2021  Steve Johnson explains why Forager Funds Management has bought and held Enero, SG Fleet and Zebra Technologies and why they're poised for further growth.
Why the 'covid spending economy' will flourish
30/03/2021  Forager's Steve Johnson explains why he's bullish on consumer spending, enterprise software companies, and why he has cashed in on big names like Uber.
Proteomics set for growth, says Kardinia
29/03/2021  Kristiaan Rehder explains why the West Australian biotech is among the top performers in the Bennelong Kardinia Capital Absolute Return Fund.
Should you be worried about inflation?
26/03/2021  And how to make inflation "personal."
Crypto what?
25/03/2021  The how, what, and why of cryptocurrency.
The long and short of an absolute return fund
24/03/2021  An absolute return fund aims to seek returns in all weather. Kristiaan Rehder from Bennelong Kardinia Capital explains how.
3 dividend-paying real estate stocks for your watchlist
23/03/2021  Diversified portfolios, strong balance sheets and healthy payouts. Grant Berry singles out three big contributors to the SG Hiscock Property Income Fund.
AREITs in the time of covid
22/03/2021  SG Hiscock's Grant Berry explains how real estate was affected by the pandemic, how property stocks coped, and the chase for income in an evolving retail landscape.
Have we reached peak video gaming?
19/03/2021  Video gaming has soared under lockdown, can this sector keep growing post-covid? Morningstar analyst Neil Macker takes a look.
Myer: five stars and poised for the rebound
18/03/2021  The retail giant's strong balance sheet will help it navigate the shift to online shopping and capitalise on the return to normal life, says Morningstar's Johannes Faul.
Deliveroo IPO: what you need to know
10/03/2021  Ahead of Deliveroo's IPO, Morningstar analyst Ioannis Pontikis looks at the outlook for the business, its valuation and concerns about gig workers.
2 stocks for the e-learning boom
08/03/2021  E-learning has become the norm for young students and university-goers across the world. Morningstar analyst Michael Field looks at whether the trend is here to stay. 
February Reporting Season Wrap Up with Peter Warnes: Webinar
04/03/2021  Special guest Peter Warnes, our head of equities research, joins the Morningstar Foundations of Investing Webinar series to give his unique take on February Reporting Season and answer subscriber questions.
One year after the market crash, through the ETF lens
03/03/2021  The growth and adoption of exchange-traded funds has only accelerated as a result of the latest market crisis.
Brighter picture for big four banks
01/03/2021  Morningstar's Nathan Zaia on the outlook for the banks, dividend payouts and the move by the Bank of Queensland to acquire ME Bank.
One year on: lessons learned from the 2020 bear market
25/02/2021  The biggest takeaway from that period is not to panic when the market tumbles.
What if...I want to buy a gold ETF?
23/02/2021  From ETFs backed by bullion to miners with more upside potential - here's how to get yourself some gold.
'Full return to normal in 2021'
23/02/2021  If the US is to stage a recovery by mid-year, it will need the consumer services sector to fire, says Morningstar's head of economic research Preston Caldwell.
Google, Facebook versus Aussie news stocks
19/02/2021  Morningstar's Brian Han weighs up News Corp's deal with Google and examines the effect of Facebook's decision to block content from Australian media outlets.
Global real estate as a store of value
18/02/2021  Quay Global Investors' Chris Bedingfield explains how self-storage, data centres and industrial property can offer diversification and growth.
Spotting the 'covid winners'
16/02/2021  Uniti Group and Nextdc are among the companies that SG Hiscock's Hamish Tadgell says have flourished during the pandemic.
The transition from hope to growth
15/02/2021  Hamish Tadgell of SG Hiscock explains the portfolio changes he’s made in a bid to capitalise on the shift.
The future of the US economy
10/02/2021  Which pandemic-related trends have already passed, and which ones might be around the corner?
GameStop frenzy is history repeating
05/02/2021  The battle between the Reddit army and hedge funds is nothing new—the question is will regulators be willing to step in, says Morningstar's John Rekenthaler.
Who are the fast fashion winners?
03/02/2021  Competition is fierce for fast fashion retailers such as Asos, H&M, Zalando and Inditex. Morningstar analyst Jelena Sokolova takes a look at the sector.
Can your portfolio withstand volatile times?
01/02/2021  Volatility can be around any corner, says Morningstar director of personal finance Christine Benz.
How much equity exposure is too much in retirement?
28/01/2021  Retirees require stocks' growth potential, but they need a cash and bond buffer, too.
Key trends for China investors
27/01/2021  Rebecca Jiang, manager of the JPMorgan China Growth & Income Trust, looks at why Chinese stocks soared in 2020 and whether the trend can continue.
Redpoint's 3 top picks in industrials
25/01/2021  Redpoint's chief executive and portfolio manager Max Cappetta tells Lex Hall why he's got his eye on JB Hi-Fi, Goodman and Reliance Worldwide in 2021.
Looking for growth and income among industrials
21/01/2021  Redpoint CEO and portfolio manager Max Cappetta looks at the dividend potential of large-cap names, the resilience of Qantas, and the local tech landscape.
What we expect from oil prices
19/01/2021  Stocks still look cheap across all subsectors, especially oilfield services and refining, says Morningstar analyst Dave Meats.
What’s app-ening: investing from your phone
19/01/2021  What are the rewards and risks of using this technology?
A Democrat clean sweep and corporate America
15/01/2021  Morningstar's head of policy research Aron Szapiro explains what sort of changes a Biden government will make and how they will affect company valuations.
3 stocks for climate transition
14/01/2021  Freight-rail, building temperature efficiency, and carmaking are among the sectors Aviva Investors' Jaime Ramos Martin has his eye on.
The outlook for dividends
13/01/2021   Dividend investors had a hard time in 2020, but Morningstar analyst Dan Lefkovitz think the outlook is brighter for the year ahead.
3 themes for fund investors in 2021
11/01/2021  Morningstar Investment Management's Dan Kemp reveals the three investment themes on his mind for the year ahead.
What next for oil and gas companies?
06/01/2021  Morningstar equity analyst Allen Good looks at the prospects for oil and gas giants in the year ahead. 
China outlook 2021
05/01/2021  China had a strong year after a rocky start, but can it continue—and what does a US President Biden mean for the region? Morningstar analyst Lorraine Tan explains.
Tech, travel and trends for 2021
04/01/2021  Morningstar equity director Alex Morozov considers the outlook for tech, travel and beyond for the year ahead.
Money and investment lessons of 2020
01/01/2021  How to plan for things you can't plan.
Morningstar Year in Review 2020
25/12/2020  2020: we look back at the highs and lows of an unprecedented year in financial markets and explore the themes shaping 2021.
Are music streaming companies a big hit with investors?
22/12/2020  Music streaming companies have seen stellar growth in user numbers. We ask Morningstar equity analyst Neil Macker if the trend can continue.
What Tesla's inclusion in the S&P 500 means for investors
21/12/2020  While it stands as the largest addition in the index's history, this likely won't impact everyday investors all that much. 
Peter Warnes and the 2021 Forecast
18/12/2020  Will there be opportunities to deploy cash in the new year? Will there be a reprieve from covid? And what will the incoming Biden administration mean for markets?
Investing in the climate transition
18/12/2020  Companies that specialise in solar, building efficiency and renewables underpin Aviva Investors' Climate Transition Global Equity Fund, says Jaime Ramos Martin.
Why does liquidity matter?
16/12/2020  Why does liquidity matter to investors, and how can it affect your returns? Morningstar equities director Tom Whitelaw explains.
Introducing the Morningstar Capital Allocation Rating
14/12/2020  Learn what we look for when rating a company.
Incorporating ESG into our equity research process
14/12/2020  Morningstar's new approach unpacks the environmental, social and governance risks that companies face.
Tagliaferro: yield ideas for your portfolio
10/12/2020  Industrial companies typically generate better cash flows and can offer a steady income stream, says the IML founder.
Anton Tagliaferro on value versus growth
09/12/2020  The lofty valuations of Tesla and Afterpay typify the effervescence and speculation in the market, says the IML founder.
Can car companies be ESG investments?
08/12/2020  Car makers may not be an obvious investment choice for ESG-conscious investors, but Morningstar analyst Tancrede Fulop says some of the largest companies score highly in some measures such as safety and human capital.
The US and China under president-elect Biden
07/12/2020  Janus Henderson's Matt Peron considers how the relationship between the US and China will evolve under a President Biden.
Investing basics: what is active and passive investing?
04/12/2020  What is active investing, and what is passive investing? We're at the whiteboard to explain the pros and cons of each 
Why we still like Treasury Wine
04/12/2020  Treasury Wine Estates remains an undervalued stock in spite of China's demand-destroying tariff on Australian wine. Morningstar director of equity research Adam Fleck explains why.
What is gold worth?
03/12/2020  And do any other assets currently compare?
Why now is the time for ESG investing
02/12/2020  We're at an inflection point in ESG investing, says Sustainalytics founder Michael Jantzi. Here's why. 
10 stocks retail investors bought in covid sell-off
01/12/2020  Beaten-down travel stocks and BNPL providers featured heavily, says nabtrade’s Gemma Dale.
How retail investors seized on covid sell-off
30/11/2020  Many people were waiting for the opportunity to buy shares at historic discounts, says nabtrade’s Gemma Dale.
AMP: difficulties now, but dividends later
27/11/2020  The 171-year-old wealth manager has had its scandals but there's merit to its turnaround strategy and the quality of its other assets, says Morningstar's Shaun Ler.
'Be careful using buy now pay later'
27/11/2020  BNPL products such as Zip Co help boost consumer spending but they come with risks and are overvalued, says Morningstar analyst Shaun Ler.
Hamish Douglass: Winners and losers in the covid era
26/11/2020  The Magellan co-founder argues the ecommerce acceleration is here to stay and ponders the effect it will have on other sectors such as travel and commercial real estate.
A 'wonderful hunting ground'
25/11/2020  Greg Dean of Cambridge Global Asset Management explains why the consumer services sector has yielded healthy returns.
Hamish Douglass and big tech
25/11/2020  Magellan's co-founder explains which tech behemoth the Magellan Global Fund no longer owns, why one was too tricky to value, and why regulation is no threat.
Hamish Douglass: 'We're lucky this pandemic hit when it did'
24/11/2020  Magellan's co-founder on why 2020 resembles 2000 and why covid-19 is a dry run for something that could be much worse without proper planning.
Should you beef up your exposure to meat processors?
23/11/2020  Their shares have gotten hammered this year. Are they opportunities or value traps?
What is the Morningstar ESG Commitment level?
20/11/2020  Our new rating highlights the degree to which a fund or asset manager considers environmental, social, and governance issues.
What's driving the flows into ESG funds
19/11/2020  Morningstar's Grant Kennaway explains why sustainable funds are increasingly popular and why they're performing well.