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Friday, 29 May 2020
Recently trending Baseline outlook for economic recovery is too optimistic 10 undervalued stocks if you're worried about volatilityWill our government embrace these three reforms?Welcome to Firstlinks Edition 357Don't invest just for yield: the smarter way to generate income
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Australia is in a relatively good position to borrow $200 billion, with the RBA using printed money to buy bonds in the market. The long-term consequences are better than the alternative.
Favourite quotations from famous people on markets, investing, processes, noise, pessimism, self perception and life balance. These lessons carry across investment cycles and lifetimes.
The search for income and cash flow by people relying on their investments has never been more difficult, so it's worth understanding both the opportunities and the overall context.
The RBA is likely to first exhaust conventional easing by cutting the cash rate to 0.5% by year end before deploying unconventional measures. Negative interest rates are unlikely.
In 35 years watching investment markets, some themes continue to repeat. Investors don't need to live through the same mistakes if they follow this list of lessons learned from studying markets.
This brief history of the GFC and the lessons we should learn is a reminder that similar events will happen again at some stage, and this time we have no excuse not to be ready.
If you had to choose one concept to explain to a young person setting out on an investment journey, it should be compounding. While the results are not as spectacular, it's especially relevant when returns are lower.
Despite signs of optimism, market valuations are stretched and recovery is fuelled by government support. Some companies are doing well but stimulus cannot continue to prop up consumers for too long.
The key to investment success from here is the ability to ignore the crowd and the hot stocks. We will then face a once-in-a-lifetime chance to buy cyclical and industrial stocks with significant upside.
Amid the coronavirus-induced turmoil, many quality names are trading at a discount to fair value, according to Morningstar analysts. A smaller list of companies also screen for earnings certainty.
SMSF trustees are concerned about stock market volatility and low interest rates, and they asked six important questions during this seminar on whether gold has a role in their portfolios.
Treasury has finally banned commissions paid to brokers and advisers on LICs and LITs but the exemption from FoFA rules remains for other listed products in the 'real' economy, whatever that is.
The simple message to diversify is not new, but thousands of SMSF trustees focus only on equities and dividends. COVID-19 is encouraging SMSFs to consider different investment strategies.
It is always easier to see the challenges and risks while underestimating ingenuity and positive possibilities. It's likely to be the case this time, too, as long as we move quickly to open economies.