Register to receive our free weekly newsletter including editorials.
25 May 2022
Recently trending
Reader: "Is one of very few places an investor can go and not have product rammed down their throat. Love your work!"
Reader: "Congratulations on a great focussed news source. Australia has a dearth of good quality unbiased financial and wealth management news."
Ian Silk, CEO, AustralianSuper: "It has become part of my required reading: quality thinking, and (mercifully) to the point."
Reader: "Keep it up - the independence is refreshing and is demonstrated by the variety of well credentialed commentators."
Reader: "Best innovation I have seen whilst an investor for 25 years. The writers are brilliant. A great publication which I look forward to."
David Goldschmidt, Chartered Accountant: "I find this a really excellent newsletter. The best I get. Keep up the good work!"
Australian Investors Association: "Australia's foremost independent financial newsletter for professionals and self-directed investors."
Ian Kelly, CFP, BTACS Financial Services: "Probably the best source of commentary and information I have seen over the past 20 years."
Reader: "Carry on as you are - well done. The average investor/SMSF trustee needs all the help they can get."
Reader: "The BEST in the game because of diversity and not aligned to financial products. Stands above all the noise."
Scott Pape, author of The Barefoot Investor: "I'm an avid reader of Cuffelinks. Thanks for the wonderful resource you have here, it really is first class."
Steve: "The best that comes into our world each week. This is the only one that is never, ever canned before fully being reviewed by yours truly."
Noel Whittaker, author and financial adviser: "A fabulous weekly newsletter that is packed full of independent financial advice."
Eleanor Dartnall, AFA Adviser of the Year, 2014: "Our clients love your newsletter. Your articles are avidly read by advisers and they learn a great deal."
Reader: "Love it, just keep doing what you are doing. It is the right length too, any longer and it might become a bit overwhelming."
Reader: "Great resource. Cuffelinks is STILL the one and only weekly newsletter I regularly read."
John Pearce, Chief Investment Officer, Unisuper: "Out of the (many many) investmentrelated emails I get, Cuffelinks is one that I always open."
Don Stammer, leading Australian economist: "Congratulations to all associated. It deserves the good following it has."
Reader: "It's excellent so please don't pollute the content with boring mainstream financial 'waffle' and adverts for stuff we don't want!"
John Egan, Egan Associates: "My heartiest congratulations. Your panel of contributors is very impressive and keep your readers fully informed."
Andrew Buchan, Partner, HLB Mann Judd: "I have told you a thousand times it's the best newsletter."
Professor Robert Deutsch: "This has got to be the best set of articles on economic and financial matters. Always something worthwhile reading in Firstlinks. Thankyou"
Rob Henshaw: "When I open my computer each day it's the first link I click - a really great read."
Jonathan Hoyle, CEO, Stanford Brown: "A fabulous publication. The only must-read weekly publication for the Australian wealth management industry."
Reader: "I can quickly sort the items that I am interested in, then research them more fully. It is also a regular reminder that I need to do this."
Reader: "An island of professionalism in an ocean of shallow self-interest. Well done!"
Reader: " Finding a truly independent and interesting read has been magical for me. Please keep it up and don't change!"
Reader: "I subscribe to two newsletters. This is my first read of the week. Thank you. Excellent and please keep up the good work!"
With the Coalition losing the 2022 election, its policy to allow young people to access super goes back on the shelf. But lowering the downsizer age to 55 was supported by Labor. Check the merits of both policies.
For exclusive articles and research papers from our Sponsors, click here.
In this environment, safe-haven assets like Government bonds act as a diversifier given the uncorrelated nature to equities during periods of risk-off, while offering a yield above term deposit rates.
A key attribute of great investors is the ability to abstract away the specifics of a particular domain, leaving only the important underlying principles upon which great investments can be made.
The Transfer Balance Cap limits the tax concessions available in super pension funds, removing the need for large, compulsory drawdowns. Plus there are no requirements to draw money out of an accumulation fund.
Companies tend to pre-position weak results ahead of 30 June, leading to earnings downgrades. The next two months will be critical for investors as a shift from ‘great expectations’ to ‘clear explanations’ gets underway.
We may have been extremely unlucky with the unforgiving weather plaguing the East Coast of Australia this year. However, on the economic front we are by many measures in a strong position relative to the rest of the world.
Discounts on LICs and LITs vary with market conditions, and many prominent managers have seen the value of their assets fall as well as discount widen. There may be opportunities for gains if discounts narrow.
Receive the latest edition of Firstlinks delivered to your inbox
Welcome to Firstlinks Election Edition 458 11
At around 10.30pm on Saturday night, Scott Morrison called Anthony Albanese to concede defeat in the 2022 election. As voting continued the next day, it became likely that Labor would reach the magic number of 76 seats to form a majority government. Read More.
Most investors pay little attention to the performance fee on their fund but it can have a material impact on returns, especially if the structure is unfair. Check for these features and a coming fee holiday.
Granting an enduring power of attorney is an important decision for the trustees of an SMSF. There are alternatives and protections to consider including who should perform this vital role and when.
Markets may be at an inflection point which could usher in a renewed focus on fundamentals and valuations. Is the golden age of growth investing a thing of the past?
Amid the war in Ukraine, the investment industry is debating whether the EU should recognise the defence industry as a positive contribution to social sustainability. Does maintaining peace outweigh the social harm?
Every successful fund manager suffers periods of underperformance, and investors who jump from fund to fund chasing results are likely to do badly. Selecting a manager is a long-term decision but what else?
Investors have different start dates for calculating investment performance, so each investor's experience of any one manager can be completely different from the next. You can't always trust that beautiful chart of past performance.
Central banks are unable to ignore the inflation in front of them, but underlying macro-economic conditions indicate that inflation may be transitory and the consequences of monetary tightening dangerous.
The headlines are filled with negative news which has unsettled global financial markets. Will the Australian economy remain resilient in the face of these economic threats?
The Russia-Ukraine conflict looks set to splinter the world into two distinct trading and financial systems aligned to either the US or China, triggering sustained inflation that will impact prices over this decade.
Governments borrowing for roads, infrastructure and items that have a long-term payback is good debt, but cash handouts for the sole purpose of getting the government back into power is 'bad' debt.
With global population expected to decline from 2064, it’s easy to focus on the negative economic outcomes. But what about the positives, such as wages growth, sustainability, and innovation and productivity improvements?
Despite inflation rising as companies pass on price increases, the RBA is reluctant to increase rates. The market is pricing in a dozen rises by the end of 2023, but Philip Lowe will see a threat to his legacy.
The pandemic profoundly impacted the way we use real estate but in a post-pandemic environment, tenant preferences and behaviours are now providing more certainty to the outlook of our major real estate sectors.
A key feature of the May results for the banking sector was profits trending back to pre-Covid-19 levels, thanks to lower than expected unemployment and the growth in house prices.
It is a tough time to be investing in growth stocks but there may be ways investors can take advantage of lower prices and be well positioned when the market and interest rates return to normality.
After many years of underperformance, 2022 could finally be the year that Australian shares outperform the US market, thanks to higher commodity prices and heavy falls in technology stocks.
Conservative investors who want the greater capital security of bonds can now lock in 5% but they should stay at the higher end of credit quality. Rises in rates and defaults mean it's not as easy as it looks.
Knowing which stocks to select in a portfolio based on the returns they will achieve with certainty would deliver exceptional long-term gains. But only if investors could stay invested through the short-term pain.
The costs of aged care will only continue to increase as the Baby Boomer generation moves into their frailty years, increasing not only the demand for services but also higher consumer expectations around the quality of service.
Family trusts are used to hold wealth, with benefits like asset protection, tax planning, capital gains tax discount and ability to carry forward losses. But there are disadvantages that must be weighed up.
Depending on personal circumstances, it may be time to rethink the bias to paying down housing debt over wealth accumulation in super. Do the sums and ask these four questions to plan for your future.
Many financial advisers have left the industry because it costs more to produce advice than is charged as an up-front fee. Advisers are valued by those who use them while the unadvised don’t see the need to pay.
The Design and Distribution Obligations (DDO) come into effect in two weeks. They will change the way banks promote products, force some small funds to close to new members and push issues into the listed space.
Do what you want with your estate but there can be challenges in a court. Older people are vulnerable and they can tell people what they want to hear, but carers can also be successful over family beneficiaries.
During market dislocation events, investors react irrationally and it should be a great environment for active management. The last few years have been an easy ride on tech stocks but it's now all about quality.
Property funds are not only offices and malls. Australia is at the forefront of sophisticated warehousing but lags on build-to-rent. What about logistics, technology hubs, data centres, self storage and health care?
In the last decade, ETFs have become a mainstay of many portfolios, with broad market access to most asset types, as well as a wide array of sectors and themes. Is there a favourite of a CEO who oversees 30 funds?
What does a global investor think of the consequences of war, changing investment opportunities, building portfolios, good and bad stocks and why obstinacy amid short-term trends is a positive attribute?
Global exchange and derivatives company, Cboe, recently acquired the local ASX competitor, Chi-X. Its CEO explains what global capabilities it brings and why you may already trade through Cboe without knowing it.
Last week, I interviewed Hamish Douglass about investing and positions in his portfolio. He was articulate, confident and relaxed, but a few days later, the Board of Magellan announced he was taking medical leave.
All fund managers have their marketing patter, much of it similar to others. They tell us about their unique process of whittling down the investable universe and their stock selection genius. Then comes the "We hold 100% of our personal investable assets in our fund". Why should we care and is it even a good thing?
An hour into the media conference following the increase in the cash rate, Governor Philip Lowe admitted there will be a review into the provision by the Reserve Bank of forward guidance on cash rates. He missed the signs and was mistaken to make predictions about no cash rate increases until 2024.
The resolve of many investors to focus on the long term with their share portfolios is increasingly tested as the list of negatives lengthens. There is a lack of visionary policies during an election campaign and stimulatory spending is contradicting the aims of tighter monetary policy.
Before the last Federal election, these pages were filled with policy discussions and articles generating hundreds of comments as Labor ran a large target agenda. We all know how that ended. Most Australians distrust government and media, and this campaign will be handouts, spin and personality attacks. Will Australia emerge more divided than ever?
'The future ain't what it used to be' and 'It's tough to make predictions, especially about the future' are attributed to Yogi Berra, a great US baseball catcher. But there's one Yogi-ism that does not have much applicability in financial markets at the moment: 'It's like deja vu all over again.' There's a lot we have not seen for a long time, if ever.
Every Federal Budget is a balance of politics and economics. On Tuesday, Treasurer Josh Frydenberg handed out some short-term goodies leaving a few grenades for the other side of the election. There was little in the Budget on superannuation, which seems to have lost its proclivity as a fiscal punching bag. The bigger problem is where inflation and interest rates are headed. Plus conflicted commissions are back by reclassifying clients.
The Oracle of Omaha’s latest annual letter is full of lessons for investors, including waiting for value, keeping a buffer, trusting the quality of your investments, and recognising new and important trends.
Most global corporations' direct exposure to Russia is limited; however, rising commodity prices and supply chain disruptions will pressure consumer sentiment and raise inflationary risks.
Following on from last week's article about the need for 'fun' in investing, a bit of money to shoot for the moon can be investors’ pressure relief valve and stop people tinkering with their main portfolio.
The most common advice in a market selloff is to hang on for the long term, but that assumes a well-laid, well-maintained plan. That may not be the case for some investors and selling may be worthwhile.
At a 2022 Outlook event, the influential BlackRock (largest fund manager in the world) CEO spoke about consumer behaviour and its impact on prices, the pandemic, ESG trends and likely equity returns for 2022.
As we enter a new year, we dive into the Morningstar database to see which asset classes have performed well over various time periods, with the related risks and largest historical drawdowns.
Chris has many years of experience in building successful wealth management practices.
Noel Whittaker is one of the world's foremost authorities on personal finance.
Phil Ruthven is the founder and director of IBISWorld, Australia's best-known business information, forecasting and strategic services corporation
Paul John Keating is a former Australian politician who served as the 24th Prime Minister of Australia, in office from 1991 to 1996 as leader of the Labor Party.
study finds nearly two-thirds of investors globally prefer using active funds to integrate ESG.
Cosmos Asset Management and ETF Securities expand investor access to Bitcoin and Ethereum.
Funds added to HUB24 platform.
Total returns from the local stock market have averaged 10.5% per year since Federation, with 12% p.a. under right-leaning governments and 8% p.a. under left-leaning governments. But it's mainly luck.
Equity income funds have been popular but they come in many different guises, and investors should know about the market exposure and the use of options strategies.
Purchases and sales of shares in their own company by directors and executives can be a powerful sign of the future potential within a company and should be monitored closely.
A lower starting withdrawal rate doesn’t always mean living on less. The latest research on sustainable withdrawals offers flexibility for retirees to improve the chances of not running out of funds prematurely.
While the competing structure, ETFs, has increased in size far quicker in recent years, LICs remain an important part of the listed trust sector. There are differences between Traditional and Trading LICs.