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Nov 2019Why super and growth assets like shares really are long-term investments
Introduction After sharp share market falls when headlines scream about the billions wiped off the market the usual questions are: what caused the fall? what’s the outlook? and what does it mean for superannuation? The correct answer to the latter should be something like “nothing really, as super is a long-term investment and share market volatility is normal.” But that often sounds like marketing spin….
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Nov 2019Not all bonds are created equal: market risks and other considerations
In today's environment of low interest rates, many investors are chasing income by moving into lower-quality high-yield bonds, but are they ignoring the downside risks? While an overweight to high-yield credit may be an efficient way to boost a portfolio’s yield, investors need to be mindful of the additional risks they are taking on and how those risks will interact with other parts of their…
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Nov 2019Green alpha: new ways to maximise real estate returns
There are mechanisms to maximise returns in this lower-for-longer environment, and a green alpha strategy in real estate investment is one option on the table. Against a global backdrop of lower interest rates, falling government bond yields and bank term deposit returns at or below 2 per cent, achieving higher, low risk returns is becoming more challenging for investors. With the lower for longer trend…
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Nov 2019Follow the earnings to superior returns in small caps
Investors may be surprised to learn about the patterns which have formed in the small caps market since the Global Financial Crisis. Here, we take a closer look at recent data, and what is driving earnings and valuations. Overview Australian small cap stocks have failed to live up to their potential in recent times. By definition, small cap companies are generally at an earlier stage…
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Nov 2019Five reasons why I am not so fussed about the global outlook
Bad meme There is always someone telling us that there is some sort of economic/financial disaster coming our way. However, there does seem to be a higher level of hand wringing now about the global economic outlook than normal. These concerns basically go something like this: Global debt – both public and private – is at record levels relative to GDP and with public…
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Nov 2019Monetary Policy Decision – Statement by Philip Lowe, RBA Governor, November 2019
At its meeting today, the Board decided to leave the cash rate unchanged at 0.75 per cent. While the outlook for the global economy remains reasonable, the risks are tilted to the downside. The US–China trade and technology disputes continue to affect international trade flows and investment as businesses scale back spending plans because of the uncertainty. At the same time, in most advanced economies, unemployment rates…
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Oct 2019Rebooting for retirement
As retirement comes into view, it’s time to imagine a new you for the post-work age. You remember your first day at school, your first job, your first home. And now your final pay check is in sight. You’re nearly there. That’s quite an achievement. How to be trigger happy As with other big life events, retirement triggers choices that shape your future. Whether it’s…
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Oct 2019More 21 great investment quotes
The world of investing can be confusing and scary at times. But fortunately, the basics of investing are timeless and some investors (often the best) have a knack of encapsulating these in a sentence or two that is insightful and easy to understand. In recent years I’ve written several insights highlighting investment quotes I find particularly useful. Here are some more. The market “Stock price…
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Oct 201914 jaw-dropping Australian natural attractions
Sometimes we don’t appreciate what we have in our own backyard. This is despite the plethora of astounding natural attractions that are sprinkled all over the country. Some of these fascinating wonders wouldn’t be out of place on another planet. Others are so ridiculously beautiful, you could stare at them all day. It’s time to celebrate Mother Nature’s brilliance with this collection of mind-boggling natural…
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Oct 2019World’s Best Beaches 2019: The Votes Are In
How would you like to laze on one of the world’s best beaches for your next getaway? Voters in this year’s TripAdvisor Travellers’ Choice Awards ranked Australia’s Manly and Surfers Paradise beaches among the top 25. However, it’s these five dazzling stretches of sand that won the most sun-loving hearts. 5. Grace Bay Beach, Turks and Caicos The poster child of the Turks and Caicos,…