Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 337

Welcome to Firstlinks Edition 337

  •   18 December 2019
  •      
  •   

If there were ever a time to offer a 20/20 vision about the future course of markets, a few days out from 2020 would be it. While we are happy to publish the views of others, here at Firstlinks, we don't profess to have a crystal ball. When major geopolitical risks rest in the hands of Donald Trump, Boris Johnson, Kim Jong-un and Xi Jinping, with the potential of a midnight tweet to cause a market meltdown, predictions are fraught. It's better to set up a portfolio according to your goals and risk appetite, and stick to a long-term plan.

It's been a tough year for financial advisers, most of whom are providing as good a service as other professionals in difficult circumstances. Adding to their woes, the new Code of Ethics comes into effect in two weeks, on 1 January 2020, and it's an onerous regime. We show the major confusion and impact on the Listed Investment Trust (LIT) and Listed Investment Company (LIC) market which holds $52 billion across 114 issues. Where is it headed in 2020? Peter Rae also reviews this sector for 2019 with the winners and losers. The following chart from the ASX Report shows the parlous state of some LICs, with around 80% of issues trading at a discount to Net Tangible Assets values.



All investors are subject to personal biases, and Joe Magyer reports on recent research which debunks some of the more common beliefs. Where do you sit on these findings?

Roger Montgomery explains the impact of the timing of returns on retirement outcomes, and makes the case for a parcel of funds that trade off some of the upside to protect the downside.

Property funds have generally delivered strong results in 2019, with some exceptions in the retail sector, Adrian Harrington reports on a new development where companies are making better use of capital by selling property on 'sale and leaseback', and it's creating attractive investment opportunities.

We rarely cover the more sophisticated trading techniques used by technical analysts and chartists, but Kim Cramer Larsson describes four tools which show how some people study the market.

In our Weekend Edition (which does not go to our entire audience), we published new research on retiree spending in retirement aimed at encouraging a better lifestyle rather than only capital protection.

In this week's White Paper, Perpetual provides background to better understanding fixed interest markets, especially important now more retail investors are turning to this sector.

With the acquisition of Firstlinks by Morningstar in October 2019, it has been a big year for the newsletter. We now have more resources to grow our services to you over 2020, and we're excited by the opportunities ahead. This is our last 'normal' edition for the year, and over the next few weeks, we will publish a free ebook, and Chris Cuffe will select some of his favourite articles for holiday reading.

We wish our readers and sponsors a wonderful Christmas, thanks for your support, and we look forward to sharing more ideas to help your investment journey in 2020.

 

Graham Hand, Managing Editor

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

 

  •   18 December 2019
  •      
  •   

 

Leave a Comment:

banner

Most viewed in recent weeks

Noel Whittaker’s take on the budget

Marketed as a fix for inequality and housing affordability, the latest budget instead delivers a tangle of tax changes that leave everyday Australians worse off.

Australia has no death duties. Technically.

Australia may not levy formal death duties, but a growing web of tax measures is quietly shaping what wealth passes between generations. Now, the 2026 budget adds another layer.

Lithium's rally is real this time – but no-one trusts it

The lithium rally mirrors the early-2010s tech stock surge, with demand set to double by 2030. Supply has been slow to respond, creating a market deficit for future tech like humanoid robotics and solid-state batteries.

Welcome to Firstlinks Edition 662 with weekend update

The debate over the budget is increasingly shaped by frustration and perceptions of unfairness, rather than clear-eyed assessment of policy outcomes.

How inflation is quietly moving the goalposts on retirement

Inflation doesn’t just raise today’s bills - it quietly increases the amount needed to retire, while simultaneously making it harder to save. Three steps to take before June 30th to improve retirement outcomes.

How to minimise tax with a will

Inheritance tax implications in Australia may surprise some, as poor estate planning without proper wills or trusts can lead to costly tax bills and delays for beneficiaries.

Latest Updates

SMSF strategies

Meg on SMSFs: The CGT changes don’t impact super but what about Div 296 tax decisions?

New CGT rules could tip the scales in the super vs non-super debate. For those facing the Division 296 tax, the case for withdrawing has gotten more complex. A "comparison rate" tool may help assess decisions.

Planning

Testamentary trusts post-budget: Estate planning, tax reform and the ‘death tax’ debate

Proposed Budget changes to taxation are casting new uncertainty over testamentary trusts, prompting closer scrutiny of estate planning structures and the real implications of reforms still taking shape.

Taxation

Income tax and bracket creep

Examining how five "tax cuts" stack up against bracket creep. Why offsets and incremental changes may do little to ease rising average tax burdens, compared to structural reform through indexation over time.  

Exchange traded products

The limits of a quality investing approach in Australia

Quality strategies shine globally, but Australia's concentrated market tells a different story. Limited diversification and sector dominance can constrain the defensive outcomes investors have seen in broader markets.

Investment strategies

Balancing opportunity and complexity

As private markets expand, investors face a growing mix of structures, a stabilising private equity cycle and uneven AI disruption. Fresh questions are being raised about where the real opportunities now sit.

Investment strategies

Why strong returns matter as much as generosity

As EOFY approaches, structured giving offers a tax-effective way to support charities, while allowing donations to grow over time and play a longer-term role in family wealth and legacy planning outcomes.

Investment strategies

The most important investment decision you’ll ever make

Stock picking often gets the spotlight, but research shows asset allocation explains the vast majority of long‑term returns. Understanding your mix of growth and defensive assets is the real key to investment success.

Sponsors

Alliances

© 2026 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.