The ASX has communicated to all market participants of an industry-wide ASX settlement failure that occurred on Friday the 20th of December. This failure has meant that CHESS was not able to complete market settlement on Friday and has deferred settlement to Monday the 23rd of December. For those clients who had sell trades settling on Friday we have ensured those sale proceeds have been made available to you for trading on Monday. Stock delivery for clients who had buy trades settling will need to wait until Monday before the shares become available to sell. We apologise for any inconvenience this ASX outage has caused.
A world gone mad: any price for growth?
While Australia’s tech darlings have achieved spectacular share price growth, the global tech behemoths continue to dominate markets. These ‘growth’ companies are trading on eye watering multiples in many cases, while less glamorous companies languish on valuations well below their long run averages. The divergence in valuation between growth and value stocks has not been this great since 1999.
So what is an investor to do? In this informative podcast, Julian McCormack of Platinum International discusses:
- Why investors continue to buy growth, despite the decreasing likelihood their investment will pay off
- Historical comparisons when markets reached such a wide dispersion of valuations
- The concept of the ‘new normal’ in a world of zero interest rates
- A reality check for investors on the Nasdaq, which dropped 75% in 2000 and didn’t make a new high for 15 years, and
- Thoughts on how to seek out companies with a strong track record of delivering value.
