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Wednesday, 12 August 2020
Recently trending After 30 years of investing, I prefer to skip this partyAustralian house prices: Part 2, the bigger picture How to handle the riskiest company results in historyAustralian house prices: Part 1, how worried should we be?Welcome to Firstlinks Edition 367
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Reductions in loan repayments, either deferrals or failing to opt out of lower payments, seem like a good idea. But they are expensive and should only be adopted if the borrower needs the money.
A simple check of the mathematics explains why social distancing is so important, and in the absence of a treatment or vaccine, the only way to stop COVID-19 becoming rampant.
Many investors are struggling with the idea of negative yields on bonds, but with $17 trillion on issue, it's worth taking a moment to think about what it actually means for your portfolio.
Marginal tax brackets are not indexed for inflation, so when people receive salary increases, there is some erosion in proportional take-home pay due to higher tax. But it’s not as bad as it used to be.
Labor justified its franking credits policy based on the cost rising 10-fold since 2001 and heading towards unaffordable levels. But were the numbers right and would the savings ever have eventuated?
The assumption that being a member of a large pooled fund will protect franking credit refunds, and the lack of concern about the impact of Labor's capital gains tax change, both require greater scrutiny.
It is better to miss a results bounce and buy after the company has delivered than it is to step on a landmine. With such uncertainty, avoid FOMO by following these result season investing tips.
Sometimes the simplest ideas are the best. The founders of Afterpay stumbled on the attraction for consumers of paying by instalments, and now retailers must offer the facility or lose business.
Although most office workers are currently WFH, an energy and a buzz comes from working in the same physical space. Other benefits include team building, relationships, talent mentoring and creative collaboration.
Going back to June 2019, investors would have questioned the logic of diversifying away from outperforming growth assets. But when markets feel at their best, it is paramount to keep a perspective on long-term goals.
While its impact will take time to unfold, 5G will meaningfully change the world. Once adoption takes hold, there is huge potential for its application across a wide range of industries.
Three key indicators are useful for predicting the short-term outlook for house prices, although tighter lockdowns make the outlook gloomier. There is enough doubt to create cause for concern.
There is good reason to believe the negatives will continue to outweigh the positives over the next 12 to 18 months. There is more concern about house prices than the short-term indicators suggest.