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.

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.

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.

Back to the future - Why indexing CGT is a good idea

A return to indexation of capital gains would be a fairer way to compensate households for the effects of inflation than the current discount. Importantly, it opens the door to future, broader reforms to stop the taxation of inflation.

The investment mistake killing your returns

Retail investors face an increasingly complex product environment, but simplicity may be the most overlooked advantage in building a portfolio you can actually live with.

Latest Updates

Investment strategies

Choose your hedges wisely… and often

A new market regime is exposing the fragility of static hedges. With correlations shifting and safe havens flipping, investors must rethink diversification and adopt more adaptive tools to protect capital.

Investment strategies

Yields take centre stage again

The Australian credit landscape is shifting. Yields are rising, issuance is strong and spreads continue to tighten. Income is re‑emerging as the dominant driver of returns, though pockets of risk may be building beneath the surface.

Investment strategies

The grass is always greener: Rethinking Australian vs global equities

Australia's once‑dominant sharemarket is losing ground as others surge ahead, prompting investors to question home‑bias instincts. Meanwhile, the US market appears attractive. Is it time to revisit your global equity allocation?

Investment strategies

Stop asking if there's a stock market bubble. Ask this instead.

Markets continue to push onwards despite valuations looking stretched by historical standards. Bubble talk is rampant, however investors may be focusing on the wrong thing. The real story sits deeper than the headlines.

Taxation

The GST cannot stop inflation

Raising the GST when inflation jumps sounds clever on paper, until we examine how it may play out in practice. What is pitched as a simple inflation fix can lead to a sharp turn in the wrong direction for prices.

Shares

Why SpaceX is coming to your super fund

SpaceX’s blockbuster debut is grabbing headlines, but the real story for Australian investors is much quieter. Giant listings eventually filter into super funds and ETFs, subtly reshaping portfolios long before most realise.

Taxation

Is the government being honest with us about its business CGT changes?

The government’s assurances on small‑business concessions don’t withstand the scrutiny. Token carve‑outs and a lack of credible rationale for CGT changes may reshape how Australia rewards long‑term value creation. 

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.