November 2014

Costly


Investing

How overseas markets are faring

25 November 2014 |

WorldWith the All Ords turning into a dividend play, DIY investors seeking for capital gains should at least look at overseas equity markets. So what is happening?


Will Murray put bank shares under pressure?

24 November 2014 |

David MurrayThe David Murray inquiry into the financial system is tipped to ask the banks to retain more capital. Some are tipping it may lead to weaker share prices. It may also reduce the profits available for dividends.


Using exchange traded funds to create options

20 November 2014 |

ETFsExchange traded funds (ETFs) can enable investors to target areas that are not offered on the ASX. But it is important to have a sound philosophy of diversification.


Central banks are 'terrified'

19 November 2014 |

FearA fund manager argues that central banks still do not have the answers, but they are pouring capital into the markets in an attempt to kick start anaemic economies


The US bull market may have a way to go

17 November 2014 |

Bull MarketThe bull run in the equities market in the US should, if history is a guide, have a way to run. It may still be a buying opportunity for DIY super investors.


Dividends down, but still high

17 November 2014 |

UpThe Australian stock market has not gone anywhere in terms of share prices, but dividends remain high. It is an income, not a capital gains play.


Even Christine Lagarde won't buy in Sydney

13 November 2014 |

CostlyThe IMF has officially said Australian housing prices are too high. Now, one report says the IMF's head can't justify buying in Sydney.


The mortgage trick that won't go away

11 November 2014 |

WrongResidential Mortgage Backed Securities have collapsed in America after the GFC, but in Australia they have made a big comeback.


Is the market a 'stag' market?

06 November 2014 |

stagnateStagging is investors buying in when there is optimism and selling out before reality bites. Is that what is happening in the stock market?


Property: Where to from here?

05 November 2014 |

Property where to?Some people truly believe that property prices only ever go up. They will tell you: “They are not making any more of it”. You could say that about land but you certainly can’t say that about apartments. The sky literally is the limit. Has Australia really run out of real estate? Or is it just limited by government policy and infrastructure?


The housing shortage is a myth

05 November 2014 |

MythAn analysis of supply and demand in Australia's property market suggests that they are not what is behind the rising prices. It suggests that there is a problem with financial excess.


Megacaps and the banks

05 November 2014 |

BanksInstitutional investors prefer megacaps: the very biggest stocks. In the US, they may represent the best value. Locally, banks are the megacaps, and they seem to be fully priced.


Another property warning

02 November 2014 |

WarningThe ANZ's chief executive sounds a warning about property investment. Given the banks' dependence on that business, it is an interesting comment.


News

Money isn't what it used to be

25 November 2014 |

MoneyIt is assumed that the economy needs surplus capital to grow. But as innovation gains pace, that is becoming less and less true. So finance has instead turned to making money from money. Watch out.


Australia's mining and finance bubbles

19 November 2014 |

BubbleThe Australian economy has been affected by a mining boom. Less well understood is the effect of the finance boom.


Wages versus the stock market

11 November 2014 |

WagesLow interest rates, rising profits and low inflation have all benefited global stock markets. They may have a common cause: falling real wages. Workers' declining bargaining power is helping investors.


Markets in a twilight zone

04 November 2014 | Reynard

TwilightGovernments have tried to clean up the mess caused by the finance sector. Now, some in the finance sector are blaming governments for being involved. It is a spectacular display of hypocrisy.


What we learned this week 26 Nov 14

25 November 2014 |

learnWeak iron ore prices, SMSF auditing may be automated, SMSFs not diversified into bonds, tax advantages, falling Australian dollar and property dangers.


What we learned this week 20 Nov 14

19 November 2014 |

learnQuestions over bank capitalisation, SMSFs wholesale investors, SMSFs underperform APRA fund, reserves, longevity risk and property investors target SMSFs.


What we learned this week 11 Nov 14

11 November 2014 |

learnSMSFs over exposed to shares, why people set up SMSFs, the global decline in wages, super funds to disclose pay, what happens when trustees have health problems.


What we learned this week 4 Nov 14

04 November 2014 |

learnCompliance problems, worrying debt levels in SMSFs, the effect of the contributions cap, problems in financial advice, banks put pressure on Finance Inquiry and the US 10 year bond at the end of QE.


Economics

China cuts rates

23 November 2014 |

RatesChina's decision to lower interest rates is a further sign that the world economy remains weak. It may mean a weaker Australian economy and lower Australian dollar, with implications for DIY investors.


How cheap can money get?

10 November 2014 |

cashWith the Bank of Japan and the ECB easing monetary policy, concerns are growing that money is too cheap. It may be leading to unhealthy speculation.


Where are interest rates heading?

29 October 2014 |

Where toRelatively benign inflation numbers suggest that we are heading into a stable interest rate environment. It suggests that DIY investors will need to diversify away from cash to get good returns.


 

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