October 2014

Property


Investing

How should cash be understood?

12 October 2014 |

UnderstoodMany DIY investors have a proprtion of their holdings in cash, which is providing low returns. Should cash be considered part of portfolios, or a way of waiting before making the 'right' investment?


The hybrid puzzle

08 October 2014 |

PuzzleHybrids, which are somewhere between shares and debt, have been marketed as a potential way for investors to diversify. But they have often disappointed when their price has fallen. Are they an option for DIY super?


Will Australian banks have to reduce their dividends?

26 October 2014 |

CapitalThe Financial Services inquiry is expected to ask the Big Four banks to retain more capital. It may put pressure on dividends.


Analysts ask if the market has reached a bottom

20 October 2014 |

BottomPicking the bottom of the market is the best way to make money. But doing it is difficult, and DIY super investors will need to be careful.


Managing volatility

19 October 2014 |

VolatilityVolatility is a psychological challenge to SMSF investors. The basic principles are clear enough, but actually adhering to them is always difficult.


Are the dangers in the world economy a super buying opportunity?

16 October 2014 |

OpportunityPeriods of pessimism and market weakness can make the best buying opportunities. The danger in the current situation is that there remains a weakness in the system itself. The global financial crisis is not yet over.


ASX companies only focused on dividends

07 October 2014 |

FocusDIY super investors with an appetite for higher levels of risk and reward might find the ASX disappointing. Companies are returning more of their profits to shareholders as dividends, rather than reinvesting in opportunities.


Retail funds lagging

06 October 2014 |

SlowInformation for the Financial Services Inquiry does not reflect well on retail fund performance.


The battle over whether to reign in property prices

02 October 2014 |

ReignThe RBA is being ambivalent about intervening in the property market. But regulators are obviously worried.


News

Asking the big questions

27 October 2014 |

QuestionDIY investors tend to look at the details of their individual choices. But it is also worthwhile looking at the bigger picture in its various aspects.


Slowing China a risk to Australia

20 October 2014 |

ChinaChina's apparently insatiable demand for iron ore seems to be weakening. It could have profound implications for the Australian economy.


The global obssession with houses

12 October 2014 |

PropertyIt is well understood that Australia's house prices are soaring to disturbing levels. What is less well understood is that the obssession with housing is a global phenomena. And the bankers are to blame. It is why the financial industry has become so large.


Is boredom the key to investment?

06 October 2014 |

BoredSome believe that picking stocks that are not volatile may be a way to get the best returns. If so, it runs counter to some popular theories of finance.


What we learned this week 29 Oct 14

28 October 2014 |

learnWhy property is high, pressure on borrowing in super, calls to fund better financial services regulation by users, the effects of QE on wealth distribution, the possible end of the oil era.


What we learned this week 23 Oct 14

21 October 2014 |

learnSuper pool is getting too big for Australia, ageing, SMSFs continue to grow, the rich love property.


The great Down Under shirt front

16 October 2014 |

ShirtWhat exactly does prime minister Tony Abbott have in mind for the Russian president, Vladimir Putin? It is a great prospect.


What we learned this week 15 Oct 14

14 October 2014 |

learnReduced investor expectations, why bank stocks are still in favour, gold rises on fear, why timing is everything in super and the confused picture over borrowing in super.


What we learned this week 10 Oct 14

10 October 2014 |

learnTime is running out for debt in SMSF's borrowing to buy property, SMSFs love cash, US rates to stay low.


Economics

Currency wars and deflation

22 October 2014 |

WarsMany developed economies are trying to keep their currencies weak in order to keep deflation away. A weak currency makes imports more expensive, which creates inflation.


The $A weakens amid global clouds

15 October 2014 |

CurrencyAs the $A falls, it has an uneven effect on local stocks. Importers do worse, exporters do better, and companies that have large foreign investor bases come under pressure.


Is capital fading away?

13 October 2014 |

fadingAs capitalism enters its late stages, those who have the money no longer have the same power. The low investment returns of the last few years may be a sign of things to come.


Is deflation about to hit Europe?

13 October 2014 |

EuroThere are signs of falling inflation in Europe, which is a concern to the world economy. Attempts to deal with deflationary pressures is part of what caused the global financial crisis.


Portfolio

The psychology of control

28 October 2014 |

ControlSMSF super funds are usually set up so trustees can gain greater control over what happens to them. So when markets become volatile and it is apparent that nobody controls them, what are the psychological effects?


How independent minded are SMSF members?

12 October 2014 |

MindSMSF members are 'very trusting' of financial advisers. More so than superannuants in a big super fund. It raises questions about how much DIY super investors want to use their fund to gain more control.


Three investment strategies used by the wealthy

06 October 2014 |

RichRich investors are not much different from ordinary investors. They tend to have three approaches, each of which has very different implications.


Are fund managers getting a free lunch?

04 October 2014 |

LunchGuaranteed inflows, no transparency, no penalty if things go wrong. Australia's fund managers may be getting extremely well rewarded. Trouble is, there is no way of knowing.


Super

Good preparation beats trying to pick markets

09 October 2014 |

George LucasB2B financial services entrepreneur George Lucas says non-professional investors do not understand that the business of investing is not about picking where markets are going. It is about preparing well with a properly diversified strategy. And understanding that very few people in the Australian market make the important decisions.


More tap their super to pay down housing debt

27 October 2014 |

HelpMore are using their super to pay down housing debt. But measures to make it easier would be a very bad idea because it would make the local capital markets even more concentrated.


Have you used related party loans in your super?

23 October 2014 |

RelatedThe ATO may be about to make changes to the law and it is advisable to be careful.


 

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