November 2013


Investing

Toll gets side ways rating

13 November 2013 | Broker reports editor

 rating

Toll Holdings is a mix of defensive and cyclic investment. It appears to be correctly priced, with a mid range dividend yield and average earnings multiple. It appears to be a case of waiting for opportunities to invest in a dominant company.


AMP to offer debt notes

05 November 2013 | Staff reporter

 DebtApprovesAMP is a big financial instituion that is relatively stable, so its new debt offering is likely to be attractive to many SMSF investors. But there are risks that investors should consider carefully before buying.


Australia's property class war

24 November 2013 | PSI

“Property”SMSF investors are looking at property for investment. But Australia's property market is very much supported by tax breaks, creating a two speed society -- property owners, and the rest. If this bias is corrected to improve social equity and government finances, it will have long term implications for DIY super investors.


A property puzzle

21 November 2013 | Staff reporter

 PuzzleDo restrictions on land availability greatly affect property prices? Many argue that developers have been manipulating the market for decades. But according to one analyst, the picture is more complex.


Investors worry about bubbles.

20 November 2013 | Broker reports editor

Bubbles Investors are growing nervous about bubbles being formed. But a report by Deutsche Bank shows that, while there are danger signals, the underlying valuations are about in line with the historical average.


Time to sell Telstra?

19 November 2013 | Broker reports editor

 Telstra Telstra is a favourite of SMSF investors for its yield and relatively low risk, due to its strong market position. But with the competitive environment changing, there are questions about the company's strength.


CSR locks into housing cycle

18 November 2013 | Broker reports editor

 locks

CSR is heavily leveraged into the building sector, which may be about to experience more activity. It is benefitting from lower aluminium prices and is getting more favourable ratings. But investors may be advised to wait for the recent share price strength to abate.


Property market dangers

17 November 2013 | Staff reporter

danger

Both Australia and New Zealand's property markets are looking overheated. New Zealand's central banker is talking tough, Australia's is not. It suggests that Australian property is going to be allowed to run even further, but for investors there are serious dangers.


Myer looking up

14 November 2013 | Broker reports editor

Myer

Myer has reported better than expected first quarter sales figures. It sheds an interesting light on the domestic economy, which may be on the improve. Brokers are divided about whether the stock is a good buy, however.


Housing supply and demand

12 November 2013 | Staff reporter

Housing

Australia has already had a housing bubble, the only surprise is that the bubble has not been pricked. One of the reasons is that the methods of making land available and the regulation of development have shaped supply and demand.


Media sector struggles

11 November 2013 | Broker reports editor

Media

There has not been a post-election jump in advertising and the media sector still seems to have some intractable issues. A look at two of the stocks in the troubled industry.


Are cyclical industrials value?

10 November 2013 | Broker reports editor

 IndustrialsCyclical industrial stocks are now more expensive than defensive industrial shares on a short term perspective. But with the economy rebalancing, that may change as margins and profits improve. For SMSF investors looking for returns, there is a case for looking closely.


Questions over Woolworths

05 November 2013 | Broker reports editor

 QuestionsThe supermarket giant is on a high price and growth is only expected to be in the single digits. It is fighting back against Coles, but there are question marks over the soundness of the investment.


News

Qantas and Virgin fight it out

28 November 2013 | Reynard

Qantas-Virgin FightInvesting in airlines is only for brave investors. SMSF managers should examine the shareholding developments closely before making decisions. There is considerable activity on the registers of both airlines.


On your own, retirement age shock

21 November 2013 | Reynard

 RetirementThe argument by the Productivity Commission to raise the retirement age to 70 may not look politically saleable, but it is a warning that the government will be much less willing to fund retirement as the population ages. The requirement to save for your own retirement has never been greater.


Rots of ruck

21 November 2013 | PSI

 LuckEconomists have a great liking for the "R" letter in their economic anarysis. Sorry, analysis. No, on second thoughts, let's go back to anarysis. It seems to have a nicer ring to it.

 


White paper can't jump

14 November 2013 | PSI

 whitepapers Some important points of clarification about why not-for-profits are not-for very much at all, and why the Tax Office is skilled at using other people's money to get other people's money.


Economics

The state of the world

28 November 2013 | Broker reports editor

“TheWorld”Investment markets are global, so the attitude of global investors has profound implications for local investors. A broker report gives a positive outlook.


Australia ok while China ok

25 November 2013 | Broker reports editor

“OK”

Government finances may be coming under pressure, but Australia's exports picture is looking rosy, which will provide some impetus to economic growth. But it is all based on China, elsewhere the export picture is weak.


Lower wage growth a drag

20 November 2013 | PSI

Lower Wages

Investors should assess the likely impact of lower wage growth on the Australian economy and financial options. Some are arguing that interest rates will have to stay low, and the high $A is having a big impact.


Why our regulators are powerless on the $A

13 November 2013 | PSI

Powerless Regulators can control the currency, capital flows and interest rates -- but not all three at the same time. It is called the trilemma and it is limiting regulators' options. It suggests SMSF investors should be looking offshore.


US deficit is shrinking

12 November 2013 | PSI

Debt

An observer could be forgiven for thinking that the US government is mired in debt and the country is close to bankruptcy. The picture is nowhere near so bleak, and there are signs that the debt is being brought under control.


Not out of the woods yet

11 November 2013 | PSI

Woods A prominent hedge fund is warning that asset prices are becoming dangerously inflated and that the US Federal Reserve is runnning out of options. But this is to overstate the power of the Federal Reserve in the first place.


China's secret ace

10 November 2013 | PSI

 AceThe fate of Australia's economy heavily depends on China's direction, a big influence on SMSF strategies. A Citi report shows how China's unique land structure gives it big advantages in managing the stresses of urbanisation and solvency.


Portfolio

Warning: Super is coming under pressure

24 November 2013 | PSI

 PressureThe signs are growing that as government finances come under pressure, super will be targeted. A Grattan Institute report has called for big tax changes. DIY super investors have to plan accordingly.


Is the share market a good play?

26 November 2013 | Broker reports editor

Super funds have reduced their ownership of shares since 2007, and since 2011. That is partly because of the rise of SMSF investors, who are less likely to diversify. How should they be assessing whether the share market is a good option?


Look overseas, but with care

18 November 2013 | PSI

Economies Investors who invested overseas have done well over the last year -- and that is with the $A still at historically high levels. The reasons to look offshore remain, but great caution is needed. The economies of the developed world remain under long term pressure and big companies are still reluctant to invest.


Developing world worth a look

17 November 2013 | PSI

Developing The $A is high and SMSF investors should be looking offshore for some diversification. The developing world offers some high revenue-generating stocks, but there is also a higher level of risk in what are immature capital markets.


Is the party over for banks?

14 November 2013 | Broker reports editor

Party OverBank shares have almost trebled in value as a proportion of the share market over the last four years, a  reflection of the high dividend yields, which are tax advantaged. But is the party over? Some brokers are suggesting it is.


Banks run equal race

05 November 2013 | PSI

 RaceA rule of thumb in investment is that big companies which enjoy large market shares rarely outperform each other in the longer term. This has been the case in Australia's concentrated banking sector, which increasingly dominates the ASX.


A mixed Australian investment environment (and annuities)

31 October 2013 | Broker reports editor

 AuInvestmentsA broker has had a close look at three sectors in the Australian investment environment. There has also been a consideration of the role of annuities in providing predictable low risk income. No easy options are on offer and pursuing yield can have dangers, as a Citi strategist warns.


Super

The dangers of financial advisers

19 November 2013 | PSI

Adviser New rules on financial advice will change the industry but clients are advised to be extremely cautious. There are gaps in the rules and the risks still remain.


What you should know about financial advisers

27 November 2013 |

“Adviser”There is a debate about how much disclosure financial advisers. The Institute of Chartered Accountants has weighed into the debate saying some suggestions do not address the serious systemic issues.


Farmers get benefits from SMSFs

26 November 2013 | PSI

Andrew LairdFarmers can get great advantages from SMSFs if they go about it the right way. But there are traps and pitfalls says one financial adviser.


The 'sophisticated investor' trap

25 November 2013 | Staff reporter

“sophisticated”If you have $5 million in your DIY super fund you are a retail investor, but if you have $5 million as an individual you are a wholesale investor and considered "sophisticated". Go figure. It is one of the contradictions of the new financial advice laws.


The less well off left behind

10 November 2013 | Staff reporter

 BehindThe decision to remove the rebate for low income earners is politically contentious and reveals much about the Abbott government's priorities when it comes to super.


SMSF trustee who becomes a disqualified person

28 October 2013 |

 DisqualifiedThere are consequences when a trustee of a self-managed super fund (SMSF) becomes a 'disqualified person'. Trustees include directors of a corporate trustee of an SMSF. If you are a trustee and become a disqualified person, you are not allowed to remain a trustee.


 

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