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Aug 15, 2019 4:49:11 PM

Sharemarket wiped out $50 Billion - Where to Now?

“The Australian share market has wiped out $50 billion worth of gains it made in the past two months “ 1

The benchmark ASX 200 has fallen 2.6 per cent to 6,427 points by 2:00pm (AEST), with nine out of every 10 stocks in the red” 1

The recent decline in the domestic stocks is part of a global sell-off amidst recession fears in the US coupled with trade-war speculation along with all-in-all lacklustre economic forecasts.

China experienced its weakest factory output in 17 years, with its latest official figures showing that industrial production grew by an annualised 4.8 per cent in July”

“The cause of the market panic was a bond market phenomenon known as the "inverted yield" — when interest rates on America's long-term (10-year) government bonds fall below short-term (two-year) rates.

It has been regarded by traders as a reliable predictor of US recessions in the past few decades. Furthermore, this "inversion" in bond markets has not occurred since 2007, just before the global financial crisis.” 1

A more chronic - and local - cause for concern is the 12-month -8.37% decline in house prices across Australia. 2

The RBA also cut the cash rate to all-time lows in July to 1.0%3  - leaving little-to-no room for monetary stimulus – which may signal that the worst is yet to come.

After enjoying years of expansionary monetary and successful performance of Risk-On assets – it appears the tide may be turning…

“You only find out who is swimming naked once the tide goes out…” – Warren Buffet

As we enter the contractionary phase of the credit cycle, we will see capital flight away from traditional risk-on assets - like shares and property – and increase investment into inflation-hedged assets – like bonds and alternatives.

For investors, it may be prudent - and timely - for a re-appraisal of your portfolio’s nakedness…

We here at Walker Capital have held the belief all year that the domestic stock market is overpriced - beckoning a long overdue correction. As such, we remain steadfast in our absolute return investment style and will be looking to capture market volatility in either direction.

Walker Capital provides investments uncorrelated to shares and property. Given Walker Capital’s MDA products are aggressive, we recommend no more than a 10% allocation of a client investable net assets.

If you missed our Audit Report 2018-2019 you can  access it here

See what our clients have to say review our testimonials.

If you want to know more we have specialised investment managers ready for a free one-on-one session with you to discuss your investment possibilities

Talk to us Now about Alternative Investments!


Schedule Session

References

1. https://www.abc.net.au/news/2019-08-15/asx-tumbles-on-us-recession-fears/11416348)

2. https://www.rba.gov.au/statistics/cash-rate/
3. 5-capital-city aggregate house pricing index
4. https://www.corelogic.com.au/research/monthly-indices
5. Warren Buffet
Audit Concept. Word on Folder Register of Card Index. Selective Focus.

Jul 25, 2019 2:34:26 PM

Audited Returns for 2018-2019

Our MDA Model Portfolio's 2018-2019 financial year audit has just been completed and we are delighted to share the results.

Our performance varied between strategies, overall a solid result

The following Strategies have been Audited below for the 2018-2019 financial year:

(All Returns are Net of Fees)

Swing Strategy  39.87%

High Growth Strategy 83.84%

Multi-Strategy 8.30%

Alpha Growth Strategy 39.87%

Get exclusive access to our Auditors report for 2018-2019 by completing your details below.

Walker Social img 3

Jun 13, 2019 9:57:15 AM

Walker Capital Expansion

We have expanded our footprint with new offices in Melbourne, Brisbane and can now service clients face to face in New South Wales, Victoria and Queensland.

If you are looking to diversify your portfolio with an investment not correlated to the market which targets alpha returns then speak to an advisor.

 

Level 40, 140 William Street
Melbourne VIC 3004

+61 3 8103 3082

 

 

Level 36, Riparian Plaza, 71 Eagle
Street Brisbane QLD 4000

+61 7 3059 3082

 

Sydney (Head Office)

Level 57 19-29 Martin Place
Sydney NSW 2000

+61 2 8076 2210

Uncategorized | 5 MIN READ

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Apr 12, 2019 10:08:47 AM

Investment Seminar Melbourne

Our first Investment Seminar was held in Melbourne on the 10th of April 2019 at the RAVC Club.

We had a great turnout for the event with the support of Robert DiPierdomenico (Dipper) and our shareholders. An informative and social night with strong interest in our Managed Investments from the attendee's below is a few photo's of the evening.

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Investment, Portfolio | 5 MIN READ

SMH

Mar 21, 2019 7:18:57 AM

Walker Capital Features in the Sydney Morning Herald

 

Following the Royal Commission into the banking sector, investors are looking for transparency and responsibility when choosing where to put their money – with Managed Discretionary Accounts (MDAs) emerging as an increasingly preferred option.

‘‘People are now much more well informed with investments and want to know what’s going on with their money,’’ says Michael Walker, principal of Sydney-based investment management firm Walker Capital.

‘‘Investors are moving away from traditional and less transparent funds into MDA structures because they want to maintain ownership of their investments. They want transparency and real-time access to their accounts.’’

The Institute of Managed Account Professionals reports that in 2018 MDAs experienced year-on-year growth of 31 per cent, representing $14.85 billion, thereby increasing funds under management in MDAs in Australia to $62.43 billion.

When setting up Walker Capital three years ago, Walker says he aimed to create an investment company that is ‘‘transparent and secure’’ while simplifying the sign-up process with ‘‘digital onboarding’’ to streamline applications.

There is growing demand for investments into alternative asset classes as investors seek to diversify and de-risk their portfolios, he says.

‘‘In alternative assets like Forex and CFDs [contracts for difference], investors need to understand the MDA investment and what the risks are,’’ Walker says. ‘‘There is leverage in many of these investments and investors need to understand these risks against the potential rewards.’’

With a mix of retail and wholesale clients and a team of veteran traders, analysts and investment managers, Walker Capital aims to ‘‘balance the risks’’ and give its customers a healthy net return on their money, he says.

The MDA structure allows each client to have a separate investment account.

‘‘Our investments are not correlated to the market,’’ says Walker. ‘‘We use a mix of fundamental and technical analysis to target positive return in a rising and falling market.’’

‘‘Using derivatives in Forex and CFDs allows us to take advantage of that opportunity.’’

 Walker says the team provides a professional product in an alternative space with transparency and accountability.

‘‘Client funds will be held in a segregated trust account with an external counterparty. We utilise either Pepperstone or Interactive Brokers to hold the funds.’’

Walker Capital clients, who sign up with a minimum of $20,000, are also able to watch in real-time how their investments are performing.

‘‘In a normal managed fund you’ll get your statement, but you don’t necessarily see what is going on,’’ says Walker. ‘‘With us, you can log into your account at any time and actually see what’s happening with your money.

‘‘We also don’t have any lock-in periods and there are no exit or entry fees.’’

Clients who sign with Walker Capital benefit from the insight of brokers across the globe, he says.

‘‘We’re a small team,’’ says Walker. ‘‘But there is a value that we add for our clients because we have our own money invested in our own strategies too. And, as such, our interests are aligned with our investors.’’

SMH

Investment | 5 MIN READ

AGE

Mar 21, 2019 7:18:35 AM

Walker Capital Features in The AGE

 

Following the Royal Commission into the banking sector, investors are looking for transparency and responsibility when choosing where to put their money – with Managed Discretionary Accounts (MDAs) emerging as an increasingly preferred option.

‘‘People are now much more well informed with investments and want to know what’s going on with their money,’’ says Michael Walker, principal of Sydney-based investment management firm Walker Capital.

‘‘Investors are moving away from traditional and less transparent funds into MDA structures because they want to maintain ownership of their investments. They want transparency and real-time access to their accounts.’’

The Institute of Managed Account Professionals reports that in 2018 MDAs experienced year-on-year growth of 31 per cent, representing $14.85 billion, thereby increasing funds under management in MDAs in Australia to $62.43 billion.

When setting up Walker Capital three years ago, Walker says he aimed to create an investment company that is ‘‘transparent and secure’’ while simplifying the sign-up process with ‘‘digital onboarding’’ to streamline applications.

There is growing demand for investments into alternative asset classes as investors seek to diversify and de-risk their portfolios, he says.

‘‘In alternative assets like Forex and CFDs [contracts for difference], investors need to understand the MDA investment and what the risks are,’’ Walker says. ‘‘There is leverage in many of these investments and investors need to understand these risks against the potential rewards.’’

With a mix of retail and wholesale clients and a team of veteran traders, analysts and investment managers, Walker Capital aims to ‘‘balance the risks’’ and give its customers a healthy net return on their money, he says.

The MDA structure allows each client to have a separate investment account.

‘‘Our investments are not correlated to the market,’’ says Walker. ‘‘We use a mix of fundamental and technical analysis to target positive return in a rising and falling market.’’

‘‘Using derivatives in Forex and CFDs allows us to take advantage of that opportunity.’’

 Walker says the team provides a professional product in an alternative space with transparency and accountability.

‘‘Client funds will be held in a segregated trust account with an external counterparty. We utilise either Pepperstone or Interactive Brokers to hold the funds.’’

Walker Capital clients, who sign up with a minimum of $20,000, are also able to watch in real-time how their investments are performing.

‘‘In a normal managed fund you’ll get your statement, but you don’t necessarily see what is going on,’’ says Walker. ‘‘With us, you can log into your account at any time and actually see what’s happening with your money.

‘‘We also don’t have any lock-in periods and there are no exit or entry fees.’’

Clients who sign with Walker Capital benefit from the insight of brokers across the globe, he says.

‘‘We’re a small team,’’ says Walker. ‘‘But there is a value that we add for our clients because we have our own money invested in our own strategies too. And, as such, our interests are aligned with our investors.’’

AGE

Investment | 5 MIN READ

stock market price display abstract

Dec 30, 2018 5:26:23 PM

What is a Fibonacci Retracement in forex trading?

A Fibonacci retracement is a technical analysis tool used by traders to understand when to place and close trades or when to place stops and limits. Fibonacci retracements depend on the mathematical principles of the Golden ratio14, and they are used to find areas of resistance and support in the primary movements of assets.

To calculate Fibonacci retracement levels, traders draw six lines across the asset’s price chart: one line would be at the highest point; one would be at the lowest point, one at the midpoint and three at 61.8%, 38.2% and 23.6%. According to the golden ratio rule, these points should be the ones at which significant levels of support and resistance should be detected.

How to Use Fibonacci Retracements in Trading

Here are the steps involved in making use of Fibonacci retracements for forex and CFD trading:

1. When applying the Fibonacci tool to a downtrend, use it to the start of the move to the end (the tool is always used from the left to the right), like so:

Fibonacci tool to a downtrend

2. With an upward moving trend, the tool should be applied at the bottom and end at the top. Once again, it is applied from the left to the right, as follows:

fib2
 
3. The Fibonacci retracement levels will automatically appear once you have used the tool. They appear in the form of percentages of the total move.
 
4. You can use the prices at 50%, 61.8% or 32.8% as your potential long entry levels.
 
5. To choose the correct level to enter based on your strategy, you need to:
  • Aggressively enter as the price reaches each level and place a stop loss at the other side of the Fibonacci level;

  • Wait until the price finds support or resistance15 at these levels and then enter.

Fibonacci Mistakes that need to be avoided

Here are some common mistakes that even very technical traders make at times. You need to avoid these at all costs as they can mess your position and timing up:

  • Do not mix your Fibonacci reference points. Keep them consistent and you should not go from a candle’s wick to a candle’s body16 as this can create a misanalysis.

  • Do not ignore any long-term trends. The major mistake that new traders do is that they look at significant moves which have occurred in the short term, and this can lead to a lot of misanalyses. By looking at the long term trends, one can use the Fibonacci retracements in the right direction of momentum.

  • Do not rely on Fibonacci alone as there is harm in doing this. Make use of additional analytical tools as this will increase your chances of making a good trade. You need the confirmation to allow you to move ahead.

  • Do not make use of Fibonacci retracement levels over short intervals. Applying it over short intervals is quite ineffective, and it will make it difficult for the trader to decide what levels can be traded.

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Insiders Guide to Forex and CFDs. That’ll Help to Improve Your Forex & CFD Trading Skills and Assist You to Make Consistent returns!

Investment | 5 MIN READ

Dec 29, 2018 9:40:35 PM

What is Fundamental Analysis?

Fundamental analysis is another technique used to trade. Fundamental analysis is a technique that is used to determine the value of an asset by focusing on underlying factors that affect the company’s future aspects and its actual business. With this technique,
you need to analyze the economic well-being of a financial entity as opposed to its price movements alone.

Fundamental analysis is used to identify those assets which are under-valued in the market, which means that they are selling at a lower price than the asset’s intrinsic value. This analysis assumes that buyers would be attracted by the low prices, and this would make them buy the asset in a sufficient enough amount to increase its price.

The Objectives of Fundamental Analysis

The objectives of this analysis technique include the following:

  • To conduct an asset valuation and predict where its price will go;

  • To make a projection on its business performance;

  • To evaluate the management of the property and make internal financial decisions;

  • To calculate credit risk of the asset;

  • To find the intrinsic value of the property.

    The Mechanics of Fundamental Analysis

    To conduct this analysis, you need to complete an in-depth and all-around study of the asset and its underlying factors. This would help you determine future prices and market developments. A combination of data is used to establish the actual current value of assets, whether they are overvalued or undervalued and the future value of the assets.

The Role of Fundamental Analysis in Trading

The first factor that you need to take into account when making use of fundamental analysis in trading17 are the pro t sources that you are targeting as these can help you understand how to make someone else’s money on your own. There are three kinds of pro t sources that are crucial to understanding:

  • When your fellow traders (with less knowledge and experience as compared to you) become a source of pro t for you. You can bene t from their losses by using better trading skills.

  • Initial public offerings and issuing additional stocks can give you the chance to cash in on the discrepancy between the price of the stocks or assets and the prices at which they will settle.

Established companies, mutual funds and other financial organizations can act as portfolio builders for traders. The trader’s pro t will then become the compensation for the risks he or she has taken.

However, fundamental analysis is not suitable for any short-term decision-making methods. Thus, you should make use of it in a strategical manner for longer periods of times.

A fundamental analyst would believe that the real value of an asset is based on its stability, earning potential and ability to grow. By exploiting the mispricing that occurs when an asset is priced at a value under or over its real value, the principal analyst seeks to pro t by utilizing one of the two main schools of thought: growth investing and value investing.

 

The 2 Approaches

Fundamental analysts make use of two different methods:

  • The top-down approach makes the analyst start their analysis with global economics (like GDP growth rates, inflation, interest rates, productivity, etc.) and then narrow their research to regional or industry analysis (like total sales, price levels, entry or exit from the industry, etc.).

  • The bottom-up approach is when the analyst starts with a particular business and then moves on to a more macro analysis.

The Problems with Fundamental Analysis

There are some serious drawbacks to making use of fundamental analysis:

  • There are an in nite number of factors that can affect the earnings of a company, its assets and price over time and take them all into consideration when conducting this analysis can be tough.

  • The data being used to carry out the analysis may be out of date.

  • The earnings that have been reported by a company might be deceptive and dubious.

  • Giving proper weightings to the different influencing factors may be difficult.

  • The results obtained from this in-depth analysis only remain valid for a short period and forecasts may become downgraded.

  • The rules of this analysis are always changing as a way to suit the trading game.

  • The fundamental analysis assumes that the analyst is completely competent, which is not

    always the case.

  • A single fundamental analyst will understand that other analysts will form the same point of view of the asset, and this will cause the value of the asset to be restored. Again, this may not always be the case.

  • This analysis technique does not take random events into account, like oil spillages, etc.

  • It also assumes that there is no monopolistic power over the markets.

    It does not indicate anything about the timing of trade, and you might have found an asset whose value has been falling for quite some time and will continue to fall, but you would not know when to make the trade.

Criticisms of Fundamental Analysis

Followers of the efficient market theory believe that fundamental analysis is awed because
it is not possible for someone to outsmart the market and identify mispriced assets using information that is available to the public.

Another source of great criticism of fundamental analysis is the fact that many believe that it is impractical. It causes analysts to come to vague conclusions about an asset and the number of variables that should be studied.

Thus, you need to apply fundamental analysis appropriately as it does not suit all market conditions and the fact that it is quite time- consuming means that you need to make sure that fundamental analysis is the option you want to go with. You should keep all of the problems under consideration before

you decide to apply fundamental analysis and it would also be best for you to make use of another technical analysis technique as a way to ensure that the decisions you make based off of the fundamental analysis are not misguided.

Claim the Free Guide

Read the full article and more download our FREE Insiders Guide to Forex and CFDs. That’ll Help to Improve Your Forex & CFD Trading Skills and Assist You to Make Consistent returns!

Investment | 5 MIN READ

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