With markets roaring ahead and economists muttering about strong growth in the Western economies, one feels a little churlish in pointing out the Panglossian nature of these pronouncements, but we do feel compelled to dwell on a few of the less positive economic issues that seem to have been temporarily forgotten by the newly emboldened investor. First and foremost, it’s Government. Yup, the institutions that belatedly saved the world economy by spending your children’s taxes have run out of cash and the ability to write credible IOUs , otherwise known as bonds. Ponder on California letting convicts out of prison because they cannot pay the wardens anymore if you think ongoing debt issuance will be painless – and that is while Central Banks are artificially depressing rates. The official prognostications for deficits are scary enough, yet we know they are predicated on a politician’s make-believe world where » Read more: Reality check

All property investors love a bargain, and six months ago one was spoilt for choice. Opportunities to buy a dollar of assets for 50 cents – or in some cases, 15 cents – abounded. This was a geographically widespread phenomenon, which has recently disappeared in most countries as market prices have soared and dilutive equity issues have proliferated. There is one glaring exception, and ironically in a country with very little oversupply of commercial property and a resilient economy.

Australia is the last bastion of discounts to NAV, somewhat ironically as the sector has historically traded at a big premium, unlike the UK or US where the newly arrived premia are » Read more: Australian property still a bargain

Renewable energy will be an investment theme for the foreseeable future, and we are very attuned to some recent developments that have the potential to revolutionise energy production. The two areas we would highlight, both represented in the portfolio, are underground coal gasification and wide band photovoltaic cells. The former is not a new concept, but the first attempts over the last 50 years or so in Russia and the U.S. were dogged by (avoidable) environmental issues, and many people now ignore the possibilities. Yet it is now possible to safely burn coal deposits underground that are too thin and/or deep to mine conventionally with a minimum of capital expenditure or environmental risk but with a far greater overall efficiency than by any form of conventional mining. Like coal bed methane this is a sector » Read more: Renewables