December 2013

Insurance


Investing

Mining majors benefit from stable iron ore market

11 December 2013 | Broker reports editor

oreVolatility in the iron ore market is leading to big investors becoming more comfortable with the big Australian mining companies. According to one broker, Fortescue Metals may benefit greatly from a re-rating of the sector.


Mid ranking shares often best value

09 December 2013 | Broker reports editor

rankBroker recommendations should be taken with a grain of salt. DIY fund investors can often do better by betting against them, according to one broker report.


Investors can do well in tougher times

05 December 2013 | PSI

“tough”SMSF investors need to consider the possibility that the Australian economy will not adjust to the end of the mining and capital investment boom. If the adjustment is slow and weak, then the way to make sound returns will change.


What the Abbott government means for banks

18 December 2013 | Broker reports editor

banksThe increase in government debt will have implications for where banks look for liquidity. One broker predicts it will mean a move away from securitisation and mortgage backed securities, which would be a negative for the regional banks.


Who is winning in insurance?

18 December 2013 | Broker reports editor

win-insuranceThe sharp sell off in QBE has focused attention on other players in the sector. One broker has given a  breakdown of their performance. Another recommends IAG.


Australia's looming generation war: SMSF investors v first home buyers

16 December 2013 | Staff reporter

“smsfwar”The ATO has cleared up some issues around SMSF investors borrowing to buy property. But should DIY fund managers go into the hot property market? A Senate enquiry will be looking at issues of affordability and the availability of land.


Property investors borrow aggressively

11 December 2013 | PSI

borrowAustralians are borrowing heavily to buy into the property market, pushing out first home buyers. Low interest rates are increasing investors' appetites. For DIY super investors relying on capital gains, the market is looking frothy again.


Property debate heats up

10 December 2013 | Staff reporter

debateInterested parties are ratcheting up their debate about the merits of DIY funds investing in property. But self managed super investors should always look at what the true motives are for those making the comments.


A cautious Rio gets support

08 December 2013 | Broker reports editor

rioRio Tinto is becoming more conservative, which is a positive for DIY investors. The demand for mining output remains strong, but mining stocks have disappointed. Rio has also risen in price.


Retail sales show life

04 December 2013 | Broker reports editor

Retail sales have shown some life, the most since August 2012. But for SMSF investors looking at investing in the sector, there are good reasons to be cautious. One broker prefers home/experience exposure to apparel.


What determines house prices?

04 December 2013 | Staff reporter

SMSF investors are increasingly considering property for investment. Many are warning of the dangers, because trustees are in part relying on capital gains in what already seems an inflated market. What is a good predictor of those gains?


News

The layer above: the techies who really drive the markets

12 December 2013 | Reynard

“nerd”When SMSF investors undertake investments in the Australian share market or other asset markets, they should be aware that they are operating at the traditional level. Above them, there is another level of computer driven geekery that is using what they do as data to feed into their risk models.


Some investment principles

05 December 2013 | Reynard

“Principals”There are some key features of investment soundness: correlation, management skill, risk management, alignment of interest. These have different levels of relevance to SMSF investors but all should be considered.


Government to declare war on itself

12 December 2013 | PSI

“war”Governments could monitor their own surveillance and decide it is against the national interest. Then they could knock on their own doors at 3 a.m. and put themselves in handcuffs, while making sure to ban any press coverage. After all, we must have privacy.


Chick magnet avoids bird flu

05 December 2013 | PSI

Chick-Magnet
"What does SMSF stand for? Is it: a)  Succubus Martes Solipsis Facto, which is Latin for Succubus Martes Solipsis Facto?"

 

 


Economics

Fear stronger than bubbles

10 December 2013 | PSI

fearThere are concerns that the American stock market is overheating and bubbles are beginning to form in the world economy. But fear remains the overriding sentiment, and investors are still parking much of their capital in cash, despite low interest rates.


The Chinese investment tidal wave

03 December 2013 | PSI

“Tsunami”China is starting to loosen its controls on the yuan, which may unleash a tidal wave of investment from the Middle Kingdom. It is a significant development for SMSF investors to watch. Some of that money may be coming towards Australia.


Portfolio

Diversifying offshore

15 December 2013 | Staff reporter

OffshoreThe high $A suggests that looking offshore has its attractions. But the fate of Australia's currency is determined by forces larger than the performance of the local economy, making its direction unpredictable. And there are risks in overseas markets.


Be yourself, know thyself

17 December 2013 | Staff reporter

knowSMSF investors should understand their own biases and tendencies if they are to make sound decisions. It is possible for very different people to do well, but self knowledge is key.


Coalition "quite like" SMSFs

03 December 2013 | Staff reporter

“Like”The Federal government is ideologically well disposed to SMSFs. Meanwhile, SMSF investors are looking offshore to take advantage of the high $A.


Super

DIY fund lobbying heats up

08 December 2013 | PSI

 lobby The politics of DIY super is heating up, with the industry funds flexing their muscles and lobbying the Federal Treasurer, Joe Hockey, hard. SMSFs do not have as co-ordinated a voice.


Pressures on super mount

01 December 2013 | Staff reporter

InsuranceInsurance premiums are rising, gobbling up the increases in super contributions. And lobbyists for the financial advice industry are gearing up their efforts to have legislative changes watered down. It is a time for SMSF investors to be wary.


 

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