Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 338

Welcome to Firstlinks Edition 338

  •   1 January 2020
  •      
  •   

We start the new year with some previous highlights. Chris Cuffe has selected his favourite articles from 2019, and our free ebook collates 30 of my interviews with leading global and local financial markets experts.

Who picked it in 2019?

Hardly anyone expected the massive 2019 equity market rally, and showing the difficulty of the forecasting game, consider the top three stockmarkets for 2019. First, Russia up 39%, despite US sanctions and illiquid markets. Second, Greece up 38%, subject to an IMF bailout amid a financial crisis a few years ago, when we were told nobody pays their taxes. Third, Ireland up 25%, with its exposure to Brexit and EU doubts. So much for investors hating uncertainty and geopolitical risks. The best commodity was palladium and the strongest currency among 130 tracked by Bloomberg was the Ukrainian hryvnia. Who knew? We have White Papers on 2020 outlooks here and here for those planning their portfolios for the new year.

30 interviews with investing experts from around the world

Even after my four decades in this business, these chats were full of new discoveries. For example, it was fascinating to meet a few times in California with Nobel Laureate, Harry Markowitz, the father of Modern Portfolio Theory. He was the first to specify assembling a portfolio based on maximising expected returns from assets for a given level of risk. He described to me his 'moment of truth', the time he went 'aha!'.

Article highlights from 2019

On Chris's selections, the leading subject in the first half of the year was Labor's franking credits policy, which generated over a thousand responses across many articles. The Coalition is still savouring its win on this policy (Goldstein is Tim Wilson's electorate):

Chris mainly focusses on articles which raised issues we will continue to debate in coming years. In addition to these 2019 highlights and the ebook, Lex Hall provides a selection of summer reading for those relaxing over January, as well as a short video on 2019 highlights and 2020 prospects. Plus for anyone who missed two popular articles, we rerun the OK Boomer 'fess up' and the summary of the fruitless search for yield without risk.

 

Graham Hand, Managing Editor

For a PDF version of Chris Cuffe's favourite articles from 2019, click here.

 

  •   1 January 2020
  •      
  •   

 

Leave a Comment:

banner

Most viewed in recent weeks

Will you run out of money in retirement?

Fear of running out has become a defining retirement anxiety. Why do some retirees die with substantial wealth while others deplete their nest egg? Evidence suggests the answer is more complicated than we think. 

Why spending more in early retirement can improve lifetime income

Conventional wisdom encourages retirees to preserve superannuation. But if those likely to qualify for the Age Pension later in life spend a little more today, it may deliver higher lifetime income and a more stable retirement.

The investment that sidesteps the new tax traps

Tax rules have changed, but many investors are still using yesterday’s strategies. Insurance bonds may offer advantages for those seeking greater control, tax efficiency and certainty about their wealth.

Testamentary trusts have secured the CGT exemption

Treasury’s latest CGT reform draft delivers a win for testamentary trusts and deceased estates, exempting estate-derived gains from the 30% floor. However, questions on death and divorce rollovers remain unresolved.

Meg on SMSFs: What do we think about reversionary pensions these days?

Reversionary pensions have long been a staple of SMSF estate planning, but are they still the best option? Meg Heffron revisits a once-clear favourite and asks whether changing super rules have shifted the balance.

How does the 4% rule stack up?

The 4% rule has long been retirement's gold standard. But after a difficult period for investors, fresh analysis suggests a more conservative approach may significantly improve the chances of making savings last.

Latest Updates

Planning

Testamentary trusts survived the trust tax. The drafting battle has just begun.

The fight over testamentary trusts looked settled. Then the draft legislation arrived. Hidden in a technical detail is a question that could force many families to rethink wills they thought were already future-proof.

Investment strategies

The new capital gains tax trap for your portfolio

Investors have long accepted one portfolio rule without much question. A major tax shift could change that calculation entirely, forcing difficult trade-offs between risk, discipline and an overlooked cost lurking beneath.

Economy

Population growth masks Australia’s productivity problem

For years, investors have benefited from a seemingly reliable growth story. But recent national accounts raise uncomfortable questions about what has really been driving Australia’s economy and whether that can continue unchecked.

Investment strategies

Why tomorrow’s winners may not be today’s index leaders

The stocks that built retirement balances over the past decade now dominate many portfolios. The new challenge is whether these companies can continue meeting the increasingly high expectations embedded in today's share prices.

Investing

What earnings surprises reveal about future returns

Sometimes the most important information in an earnings result isn't the number itself. It's the possibility that the market's assumptions have been fundamentally wrong and future earnings may look very different.

SMSF strategies

Individual SMSF Trusteeship directly liable for ATO fines

A rarely discussed detail buried in SMSF structures could dramatically change who wears the cost when something goes wrong. With penalties rising, a decision many dismissed as administrative may deserve a second look.

Investment strategies

The currency bet you didn’t know you made

Buying global shares means making two bets: on the companies and on the Australian dollar. Most investors consciously choose only the first. Last financial year, the second bet cost 8.5% in returns for many investors.

Sponsors

Alliances

  • ASA-Logo-RGB-ActiveGreen-web.png

© 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.