September 2014

invasion


Investing

What the gold price is telling us

21 September 2014 |

GoldThe gold price is down by a third from its peak and by 10 per cent this year. What does it mean?


If you can't beat SMSFs, join them

30 September 2014 |

JoinIndustry funds are offering superannuants greater choice over their investments in an effort to stem the flood of money into DIY super. It is an intelligent strategy.


A different property perspective

24 September 2014 |

New ideaIn investment it is a case for many of "often wrong, never in doubt". It is valuable to get different views to make mature judgements. Here is one.


The fault line under the stock market

23 September 2014 |

Fault lineA report says that about a third of Australia's listed companies are close to the edge. It is a sober reminder to SMSF investors who put their savings into the shares.


Are we heading for a banking crisis?

22 September 2014 |

BanksAustralian banks are not holding as much equity as they did 10 years ago, and their leverage is high. Everything depends on a healthy housing market. Difficulties may be on the horizon.


DIY funds invade the stock market

16 September 2014 |

invasionDIY super investors are heavily focusing on the stock market. Following their investment habits can be effective, but there is also concern that they are not diversifying enough.


More warnings on property

15 September 2014 |

warningThe Bank for International Settlements is also warning about Australian property. What does it mean for the options facing SMSF investors?


Low inflation is good for dividends

11 September 2014 |

GoodNewsA letter from Warren Buffett in high inflationary times is a useful pointer to how low inflation should affect companies' dividend payments. Low interest rates should also be a positive for dividend payments. 


Dividends and HIROs

09 September 2014 |

diviendsSMSF investors tend to focus on high dividend paying stocks to ensure steady returns. It looks like a sound play in the current environment, but there are dangers. In particular high return oligopolies (HIROs) are vulnerable to an economic slow down.


What the brokers are saying

03 September 2014 |

BrokersWhich stocks have pricing power, which are in a good or bad cash situation, dividend trends, internet stocks, BHP-Billiton, finance stocks and REITS.


Big boys look at overseas stock markets

01 September 2014 |

OSMost SMSFs have only a small allocation to offshore equities. Is the focus on domestic shares dangerously narrow? The fund managers think so.


Risks to housing and the banks

31 August 2014 |

banksAustralia's property market is running hot, fuelled by low interest rates. It is not just dangerous waters for property prices. It also poses a threat to the big banks.


The Chinese influence in the housing market

31 August 2014 |

chinaAnecdotal reports are increasing that the Chinese are aggressively buying into Australia's property market, which will only intensify what are already great distortions.


News

Oil and the financial crisis

28 September 2014 |

OilThe GFC was assumed to be about financialisation and errant property markets. But was there another reason?


Investing in a stagnant world

23 September 2014 |

What to doThe economies of many developed countries are becoming much more stagnant, a sign that they are entering a late, mature phase. It poses some deep challenges for DIY super investors.


Protected banks may still come undone

10 September 2014 |

ProtectedThe banks are over-protected by governments. But they are still exposed to some major risks, especially in the property market.


To contribute or not to contribute

06 September 2014 |

questionsThe Federal government's delaying of the increase in super contributions has been met with criticism by many in the super industry. But how significant is it? Everything depends on doing your own due diligence.


The crisis in money

31 August 2014 |

crisisThe effects of the GFC are still lingering, which poses a deep threat to money itself. It remains a problematic investment environment.


What we learned this week 1 Oct 14

30 September 2014 |

learnAustralian bonds perform poorly, house building accelerates, weak global economy, global trade poor, Australian miners unproductive, home loan curbs.


What we learned this week 19 Sept 14

18 September 2014 |

learnA housing bubble or not, foreign interest in commercial property, how to benefit from a falling $A and expectations of volatility in the markets.


What we learned this week 5 Sept 14

04 September 2014 |

learnBig four banks risky, RBA warns about property market, dividend bonanza, end of iron ore boom puts Australian economy in trouble, international markets boom, warnings about a credit bubble.


Economics

The end of the China bonus and beginning of more Chinese property buying?

08 September 2014 |

moneyThe falling iron ore price is a sign that the "China bonus" that has underpinned the Australian economy since the GFC is coming to an end. There are also indications that even more Chinese money may come into the local property market.


Veering towards recession

07 September 2014 |

trendThe Australian economy is heading into troubled waters, which will have implications for investment.


The era of deflation

01 October 2014 |

SqueezeDeflationary pressures have been felt across the developed world for about two decades. It is an important point to remember for DIY super investors.


Five implications of a lower $A

28 September 2014 |

FiveThe $A seems to be headed on a downwards path. What does it mean for DIY investors?


Cross currents hit

22 September 2014 |

Cross windThe $A is falling, the stock market is losing this year's gains, and the US markets are in bubble territory. How should it all be interpreted?


The Fed makes the big shift

17 September 2014 |

ShiftThe US Federal Reserve's shift on interest rates is the most important change in the financial markets since the GFC. It will have an effect on investments around the world.


The GFC is still with us

15 September 2014 |

GFCWhen interest rates rise in the US, it will be a test of a fragile global financial system. Because the stresses caused by the GFC remain.


The health and longevity bomb

10 September 2014 |

populationThe problem is simple. Populations in developed economies are ageing and the sums to fund it don't add up. Especially when health care is taken into account. It is crucial to save for yourself because the government's ability to care for its population will weaken.


Super

The super fee rort

14 September 2014 |

RortBecause super fund managers get paid a percentage rather than a flat fee, their income is soaring to extraordinary levels.


Delay in super levy unwelcome politics

03 September 2014 |

unwelcomeThe decision to delay the rise in the superannuation levy, in return for removing the mining tax, is an unwelcome intrusion of short term politics into long term national saving, many argue.


SMSFs have their own governance problems

08 September 2014 |

GovernanceThe governance issues at retail and industry funds are signficant and are being widely debated. But DIY funds have their own, often unrecognised, governance issues.


 

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