July 2014

Property bubble


What we learned this week 10 July 14

10 July 2014 |

learnBanks have it good, LICs not supported, Australian property market falls in ranking, IPOs, negative gearing, term deposits.


What we learned this week 4 July 14

03 July 2014 |

learnCaps on super proposed by peak body, CBA confesses it has a problem, property market weakens, US economy heats up, investment mistakes, investment myths.


Investing

Divergence: the underlying patterns in markets.

30 July 2014 |

PatternsWe humans see patterns and stories. That affects the way we see what happens in markets. Sometimes what we see is real, sometimes not.


Biggest mistake? Lack of diversification.

30 July 2014 |

MistakeA long term study has shown that making too narrow a range of bets is the biggest mistake smaller investors make. It is a concern for many DIY super investors who are choosing a narrow range of options.


Low interest rates create hunt for higher returns

26 July 2014 |

HuntSMSF investors are looking to move away from the low returns being offered by banks on deposits. It may be a dangerous period.


What are exchange traded funds?

24 July 2014 |

ETFETFs can be a valuable element in any SMSF portfolio. They are worth understanding.


All that glisters is not the gold price

17 July 2014 | Gary Stone

AdviceGold is viewed as the ultimate store of value and a hedge against inflation. But is it?


A sad mistake

16 July 2014 |

oopsA law firm has released details of a case in which the contributions cap was breached. It is worth a look to see what to avoid.


Travel broadens the investments

08 July 2014 |

TravelInternational stock markets are seeing a lot more excitement than the ASX, whose returns are largely yield-based. With the $A high, there are possible diversification options, but also risks.


Round numbers and cognitive bias

02 July 2014 |

NumbersMarkets are supposed to be rational, but they aren't. One of the biases is a fascination with numerical benchmarks.


Even the rich stuff up

01 July 2014 |

MistakeA study of wealthy investors shows that they are the same as all the rest of us when it comes to making investment mistakes.


Super funds on way to $5 trillion, looking overseas

30 June 2014 |

OSAs super funds increase in size they are becoming one of the world's biggest pools of capital. They are bringing their investment in-house. The reason is cost cutting. Why pay middle men, like private equity, a fee when you can do it yourself? That sentiment is also behind the rise of SMSFs.


Negative gearing increases prices of housing

24 July 2014 |

GearingNegative gearing is distorting house prices, according to a ratings agency. There are also risks in borrowing to buy houses in an SMSF.


Are we about to enter into a global deal frenzy?

22 July 2014 |

DealAnalyst Jeremy Grantham reckons that the US market is becoming overheated. With interest rates so low, there is a possibility of a dangerous pick up in mergers, acquisitions and other deals. The return of confidence in the US carries dangers.


Is the RBA right about property?

22 July 2014 |

PropertyThe Reserve Bank is becoming concerned about the property market. Are they correct? And what happens if interest rates rise?


The big city property bias

21 July 2014 |

CityAustralia's economy is heavily skewed to the big cities. But how much of this is dangerously self reinforcing?


Will bank dividends come under pressure?

16 July 2014 |

banksDIY super investors have targeted banks because of their franked dividends. But the inquiry into the financial system may put that strategy under a cloud.


Is Westpac top heavy?

14 July 2014 |

WespacA broker report suggests that St George is a drain on Westpac's capital.


News

Property bubbles in troubled times

28 July 2014 |

Property bubbleDIY super funds are increasingly eyeing off property as an investment option. The pricing excesses need to be seen through the prism of the GFC and historically low interest rates.


What is investment diversification?

21 July 2014 |

PieFinancial advisers tell clients that they should diversify their portfolio. What does this mean?


Why are we paying so much?

16 July 2014 |

questionThe Murray report confirms that we are paying too much in super fees. It also expresses some concerns about equity in super. New taxes may be on the way.


The side ways Australian market

08 July 2014 |

SidewaysThe ASX last month traded in a tight range, and has underperformed overseas markets, one broker notes. It is a mixed picture.


Is the Aussie share market about to shrink?

30 June 2014 | Reynard

ShrinkDe-equitisation, or the withdrawal of shares, seems about to hit the ASX. What does this mean for investors?


Happy Hockey sticks

24 July 2014 |

JoeJoe Hockey is a great guy, and some people even think he makes sense. His Mum, for instance.


Thanks for the entertainment

16 July 2014 |

jokerThe Australian federal parliament has rarely had an entertainer like our Clive.


The upside of the downside

25 July 2014 | Gary Stone

UpsideTrading shares will inevitably involve some losses. Make sure you don't lose the lesson as well.


Economics

The big convergence

29 July 2014 |

ConvergenceAustralian interest rates may fall further, and US interest rates may rise. As the two converge, the international pressures on the Australian economy will change markedly.


Too much debt in the system

09 July 2014 |

DebtThe Bank for International Settlements is warning about the fragility of the global financial system and the dangers of high debt. There is still a long way to go to get back to a more "normal" situation.


Time for governments to govern

02 July 2014 |

GovernAs the GFC proved, governments in the developed world have stopped governing the financial system. Instead, they let traders run riot, making up rules to suit themselves. It has to stop.


Portfolio

Does it pay to employ active investment managers?

23 July 2014 |

ManagersHolding on to investments can make a lot of sense. There has to be a very good reason to pay extra to employ an active manager.


Things to look for in financial advisors

06 July 2014 |

ChecklistThe rise of SMSFs is based on a recognition of a basic reality. Most advisers are essentially sales people and clients are, in a fundamental sense, on their own. It is a case of buyer beware -- and buyer taking personal responsibility.


Super

How SMSF advisers are making money

28 July 2014 |

SMSF AdvisersThe SPAA-Macquarie survey offers a snapshot on a sizable and profitable industry.


How your Self Managed Super Fund is regulated

26 July 2014 | ATO information guide

ATO SMSF GuideAn overview on what you need to know and where you can get help setting up and running a SMSF.


Behemoths dominate the financial system -- and super

15 July 2014 |

GiantThe inquiry into Australia's banking system has stated the obvious. Oligopolies dominate our financial sector -- and that means overly expensive super. It also argues the selling of financial products should be no longer be called "advice."


SMSFs satisfied with themselves

07 July 2014 |

HappyA survey of SMSFs has found there is a high level of satisfaction, more than is the case with retail and industry funds. It is a lesson about the advantages of self reliance in the increasingly fraught world of financial decision making.


What happens if your mind fails?

30 July 2014 |

MindMany DIY super trustees are approaching a dangerous age in relation to mental health. There is a need to act ahead of time.


Love your tax agent

09 July 2014 |

LoveAt tax time, it is important to know how important your tax agent is. There are pitfalls.


 

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