March 2014

Economic Rationalism


Investing

Is crowd funding an investment option?

20 March 2014 |

crowd fundingThe Federal government is reportedly becoming more interested in crowd funding as a way to get funding for start ups. Is this an option for diversification for DIY investors?


Seven megatrends that will affect investment

20 March 2014 |

TrendsMegatrends, long term influences, determine the investment environment over the long term. They do not translate easily into investment strategies, but DIY super investors should give them careful consideration.


Global fund managers bullish

05 March 2014 |

Global bullish A survey of global fund managers suggests that they are becoming more optimistic. When the big money players start to invest, it is usually good for markets.


Rising bond yields not a negative for the stock market

04 March 2014 |

BondsRising bond yields in the US are being treated as a bad sign for the US stock market, which is at historic highs. But it could just as easily be interpreted as a positive sign that the financial system is beginning to recover, which would be a positive for the stock market.


An innovative property option

26 March 2014 |

Arthur NaoumidisDomacom is providing DIY super investors with a way to invest in specific properties, yet also diversify. It is an unusual option that may provide a way to achieve improved diversification.


Land gets dangerously expensive

25 March 2014 |

Expensive LandMedian lot prices nationally have risen by over 400% over the past 20 years. And over the last decade there has been powerful growth in land prices. It should be a cautionary note for super investors contemplating diversifying into property.


Westpac solid but unexciting

19 March 2014 | Broker reports editor

Wespac

Westpac is one of the banks much favoured by DIY investors. Brokers think it is unexciting, but believe it is benefiting from a better context for financial services companies.


Housing investment and retail banking

18 March 2014 | Broker reports editor

Housing

Indebted Australian households are paying down that debt, which is good for the banks. But the housing market remains heavily skewed towards capital gains rather than rental yields. The longer that goes on, the more fragile it gets.


Buying listed investment funds

17 March 2014 |

Listed Investmenst Sometimes it is better to buy shares in professional investors than to buy units in their funds. You are buying the fund managers' ability to sell themselves. The ASX will be making the process easier this year, but DIY investors should be aware of the risks.


Going back to economic rationalism

17 March 2014 |

Economic Rationalim The Abbott government is returning the country to "economic rationalism". But as the distortion in the property market demonstrates, there is no such thing in reality. Manufacturing will not get support, but other areas of the economy are getting great government assistance. That has investment implications.


Property oversupply danger to super investors

17 March 2014 | Staff reporter

Property Danger

Australians' obssession with property investment has led to an overheated market. There are warning signals about Brisbane, Perth and Melbourne, analysts are warning.


Insurers may be worth a look

13 March 2014 | Broker reports editor

insuranceThe insurance sector may fail to meet its growth targets, but inflows are reasonably "normal" according to one broker.


Outlook benign

03 March 2014 | Broker reports editor

Outlook benignA broker says first half earnings per share growth suggests the stock market is headed for 15% full year growth. Dividend payouts remain high. The miners have made a comeback.


News

Is Grantham right?

25 March 2014 | Reynard

J GranthamJeremy Grantham is a popular US commentator on the markets. He is predicting that over a seven year period there will be negative returns. Is this a warning for super investors?


Leighton bid implies caution

17 March 2014 | Reynard

LeightonThe bid by Hochtieff for three quarters of the construction company has led to a sudden boost in the share price. But how long will it last?


Slithershanks says 'Be kind to bankers.'

27 March 2014 | PSI

SlithershanksSeveral reasons why we really like bankers after all.


The year of the blindfold donkey

20 March 2014 | PSI

donkeySome important defintions about life in the financial sector.


Economics

Will Australia's luck last?

30 March 2014 | PSI

LuckAustralia has managed to remain largely immune to the dire economic events that occurred internationally after the GFC. But with global markets still struggling, the question is will Australia be able to maintain its splendid isolation?


Why is the $A rising?

27 March 2014 | PSI

CurrencyThe $A, the world's fifth most traded currency, is off to the races again. The casino of the world capital markets is finding it a useful gamble. For DIY investors it may suggest a reason to look offshore.


US Fed chief points to more normal world

24 March 2014 | PSI

Business as usualSuper investors can take some heart from the comments of Janet Yellen, the new head of the US Federal Reserve. A return to more "normal" conditions seems in the offing, including, eventually higher interest rates. But dangers still lurk.


Borrowing rises in US

10 March 2014 | Staff reporter

BorrowingThe global financial system is gradually recovering from the GFC. There are signs that private borrowing is resuming in America and the UK. And China remains strong. It suggests that investment conditions are slowly returning to something like normalcy, although dangers remain.


Portfolio

Big boys chase DIY investors (selfies)

02 March 2014 | Broker reports editor

SMSF GrowthSelf managed super fund investors (selfies) are now have 16% of the stock market. Their holdings are now so large, professional investors are trying to follow what they do in their own investment choices. It is making the market more conservative.


Super

New understanding of the SMSF trustee market

06 March 2014 | Dr Colin Benjamin

SMSF ResearchGovernment decisions to free up the financial consulting market raise questions about the sensitivities of those who are most vulnerable to self-serving financial advisors. In reality, without at least $200,000 invested, there is a risk that higher fees will eat into nest eggs. It is worth considering the deregulation of agents.


Watch out for ATO fines

26 March 2014 | Staff reporter

ATOChanges to come into effect on July 1 make it easier for the ATO to impose fines on self managed super trustees. Making sure that compliance is up to standard has become even more important. Some fines are over $10,000.


 

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