Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 327

Welcome to Firstlinks Edition 327

  •   9 October 2019
  • 1
  •      
  •   

When you consider all the things people might worry about, the current ABC survey called 'Australia Talks', uncovering our attitudes and experiences, is producing surprising results. Based on 54,000 responses, ahead of health but behind climate change, comes 'Saving enough money for retirement'.


Source: ABC 'Australia talks', October 2019

Retirement saving is double 'Providing for family'. The Government's Retirement Income Review is therefore timely, although as we wrote last week, expectations should be temperedNick Callil describes three ways retirees can spend their super, balancing running out of money ('ruin') with leaving it behind ('wastage').

There's no other country in the world where superannuation influences headlines and politics as much as Australia. Bill Shorten acknowledged last week that what the Liberals dubbed the 'retiree tax' had damaged Labor:

"We misread the mood in terms of the franking credits. What everyone thinks about the system in hindsight - and of course, hindsight is never wrong, is it? - what we saw is that there were a lot of older people who felt vulnerable and it also laid the seedbed for the fake campaign on the death tax."

He should read Firstlinks, because in the seven years of this publication, we have never received so many comments on one subject. Over one thousand. Shadow Treasurer, Jim Chalmers, has already flagged that Labor policies will change before the 2022 election.

In other highlights ...

Elizabeth Bryan and Chris Cuffe are two of Australia's most experienced board chairs and directors. It was fascinating to hear their views on how a good board should function, with tips for aspiring members to transition from executive to board roles. It's not suitable for everyone.

Plenty is being written about bubble asset valuations as investors scramble for returns, and Roger Montgomery gives specific examples of how some investors have lost perspective.

In looking for both yield and lower volatility, Adrian Harrington makes the case for quality property with first-class tenants and long lease (Weighted Average Lease Expiry or WALE) terms, and it's worth understanding more about 'triple net leases'. Similarly, real assets including infrastructure have a role in most portfolios, and Andrew Parsons shows the opportunities.

Adam Grotzinger explains that as opportunities in traditional markets become constrained, a flexible approach to global opportunities can enhance risk-adjusted returns.

We like to think markets are subject to a vast array of forces, but one dominates all others: the actions of central banks. They've fed us on sugar for years, and we all know what happens eventually when we consume too much sugar. Ashley Owen draws the chart and the conclusions. When central bank balance sheets have gone from US$10 trillion to US$22 trillion in a decade, as shown below, do we expect them to continue expanding to feed our endless appetites?




Finally, on the subject of major market trends, this week's Sponsor White Paper is from Martin Currie Australia (an affiliate of Legg Mason), on why the value style of investing will soon have its time in the sun after being in the shade of growth and momentum for many years.

 

Graham Hand, Managing Editor

For a PDF version of this week’s newsletter articles, click here.

 

banner

Most viewed in recent weeks

Which generation had it toughest?

Each generation believes its economic challenges were uniquely tough - but what does the data say? A closer look reveals a more nuanced, complex story behind the generational hardship debate. 

Maybe it’s time to consider taxing the family home

Australia could unlock smarter investment and greater equity by reforming housing tax concessions. Rethinking exemptions on the family home could benefit most Australians, especially renters and owners of modest homes.

The best way to get rich and retire early

This goes through the different options including shares, property and business ownership and declares a winner, as well as outlining the mindset needed to earn enough to never have to work again.

A perfect storm for housing affordability in Australia

Everyone has a theory as to why housing in Australia is so expensive. There are a lot of different factors at play, from skewed migration patterns to banking trends and housing's status as a national obsession.

Supercharging the ‘4% rule’ to ensure a richer retirement

The creator of the 4% rule for retirement withdrawals, Bill Bengen, has written a new book outlining fresh strategies to outlive your money, including holding fewer stocks in early retirement before increasing allocations.

Chinese steel - building a Sydney Harbour Bridge every 10 minutes

China's steel production, equivalent to building one Sydney Harbour Bridge every 10 minutes, has driven Australia's economic growth. With China's slowdown, what does this mean for Australia's economy and investments?

Latest Updates

Superannuation

Super crosses the retirement Rubicon

Australia's superannuation system faces a 'Rubicon' moment, a turning point where the focus is shifting from accumulation phase to retirement readiness, but unfortunately, many funds are not rising to the challenge.

Economy

Should Australia follow Trump's new brand of capitalism?

A new brand of capitalism may be emerging - one where governments take equity in private companies. Is it state overreach, or a smarter way to fund public goods without raising taxes?

Gold

Why gold may keep rising - and what could stop it

Central banks are buying, Asia’s investing, and gold’s going digital. The World Gold Council CEO reveals the structural shifts transforming the gold market - and the one economic wildcard that could change everything. 

Investment strategies

Fact, fiction and fission: The future of nuclear energy

Nuclear power is back in the spotlight, including in Australia. For investors exploring the sector, here are four key factors to consider in this evolving energy landscape. 

Taxation

The myth of Australia’s high corporate tax rate

Australia’s corporate tax rate is widely seen as a growth-killing burden. But for most local investors, it’s a mirage - erased by dividend imputation. So why is it still shaping national policy? 

Taxation

Should we change the company tax rate?

The headline 30% corporate tax rate masks a complex system of dividend imputation and franking credits that ensures Australian shareholders are taxed only once, challenging traditional measures of tax competitiveness. 

Investing

Noise cancelling for investors

A lot of the information at an investor's fingertips today has little long-term value. The modern investing greats are not united by access to faster information, but by their ability to filter out what doesn’t matter.

Sponsors

Alliances

© 2025 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.