November Podcasts: Crypto, Insolvency, Australian Property and a Market Bottom?

Below is a summary of the topics we covered on Nucleus Investment Insights this month. See the links for more information.

The Great Insolvency Façade with Caroline Di Russo

In this episode, we are joined by Caroline Di Russo of The Daily Luxe, to discuss what’s happening and likely to happen in insolvencies, as well as the luxury goods market. Caroline is a lawyer with 15 years of experience in commercial litigation and corporate insolvency.

Agenda:

• The insolvency rules changed after the pandemic started removing a raft of liabilities
• After 3 years of very low levels of insolvencies, they are finally approaching more normal levels
• Are we due a "catch-up"? Or did the government transfers paper over the cracks for long enough?
• What will be the effect of rising interest rates
• Is the tax office back as an instigator?
• What rule changes are occurring and might occur in the future

Crypto Contagion! Is FTX the Tip of the Iceberg?

From Luna and TerraUSD in May to FTX a few weeks ago, and BlockFi this week, 2022 has been littered with crypto collapse. So we ask the question if this contagion keeps spreading, how far could it go?

There are two main issues:

1. The size of the crypto market and how much the 'negative wealth effect' from the falls could have.
2. Could we see a run on exchanges similar to what we saw with Lehman in the financial crisis?

Cracks Appearing in the Foundations of the Australian Property Market

In this episode, we are joined by Stephen Mitchell, CEO of Oak Capital, and Troy Stratton, the CIO, to discuss the cracks that are starting to appear in the Australian property market. Oak Capital is an alternative non-bank lender and credit fund.

Agenda:

• Pressures ramping up on borrowers in second tier lending market
• Tax office collection activity, including director penalty notices
• Rise of incomplete property scenarios
• Liquidity in the market encourages less sophisticated lenders to take large risks whilst chasing a race to the bottom on rates
• General view as to why Oak Capital doesn’t engage in true development lending, and some of the scenarios they are seeing
• Investment implications

Are We Close To The Market Bottom?

In this episode, we are joined by Evan Lucas, The Chief Market Strategist at InvestSMART, to talk about his new book Mind Over Money and his view on markets.

Agenda: Are We Close to the Market Bottom?

• Evan's book Mind Over Money & the psychology of investing
• Asset Allocation
• Stock Selection
• Australian vs international
• Inflation
• The US results

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