Register to receive our free weekly newsletter including editorials.
Saturday, 11 July 2020
Recently trending 11 lessons from my lousy $50K profit on AfterpayHow much bigger can the virus bubble get?Share trading is the new addictionWhat is happening with SMSFs? Part 1New ways for listed funds to fix their price discounts
Ian Kelly, CFP, BTACS Financial Services: "Probably the best source of commentary and information I have seen over the past 20 years."
Jonathan Hoyle, CEO, Stanford Brown: "A fabulous publication. The only must-read weekly publication for the Australian wealth management industry."
Steve: "The best that comes into our world each week. This is the only one that is never, ever canned before fully being reviewed by yours truly."
Scott Pape, author of The Barefoot Investor: "I'm an avid reader of Cuffelinks. Thanks for the wonderful resource you have here, it really is first class."
Reader: "It's excellent so please don't pollute the content with boring mainstream financial 'waffle' and adverts for stuff we don't want!"
Reader: " Finding a truly independent and interesting read has been magical for me. Please keep it up and don't change!"
Don Stammer, leading Australian economist: "Congratulations to all associated. It deserves the good following it has."
Reader: "Carry on as you are - well done. The average investor/SMSF trustee needs all the help they can get."
Noel Whittaker, author and financial adviser: "A fabulous weekly newsletter that is packed full of independent financial advice."
Rob Henshaw: "When I open my computer each day it's the first link I click - a really great read."
Eleanor Dartnall, AFA Adviser of the Year, 2014: "Our clients love your newsletter. Your articles are avidly read by advisers and they learn a great deal."
Reader: "I subscribe to two newsletters. This is my first read of the week. Thank you. Excellent and please keep up the good work!"
John Pearce, Chief Investment Officer, Unisuper: "Out of the (many many) investmentrelated emails I get, Cuffelinks is one that I always open."
David Goldschmidt, Chartered Accountant: "I find this a really excellent newsletter. The best I get. Keep up the good work!"
Vishal Teckchandani, Content Editor, nabtrade: "Exceptional investment literature of the highest possible quality."
Reader: "An island of professionalism in an ocean of shallow self-interest. Well done!"
Reader: "Congratulations on a great focussed news source. Australia has a dearth of good quality unbiased financial and wealth management news."
Andrew Buchan, Partner, HLB Mann Judd: "I have told you a thousand times it's the best newsletter."
Reader: "Is one of very few places an investor can go and not have product rammed down their throat. Love your work!"
Reader: "The BEST in the game because of diversity and not aligned to financial products. Stands above all the noise."
Reader: "Love it, just keep doing what you are doing. It is the right length too, any longer and it might become a bit overwhelming."
Reader: "Best innovation I have seen whilst an investor for 25 years. The writers are brilliant. A great publication which I look forward to."
Ian Silk, CEO, AustralianSuper: "It has become part of my required reading: quality thinking, and (mercifully) to the point."
Reader: "I can quickly sort the items that I am interested in, then research them more fully. It is also a regular reminder that I need to do this."
John Egan, Egan Associates: "My heartiest congratulations. Your panel of contributors is very impressive and keep your readers fully informed."
Australian Investors Association: "Australia's foremost independent financial newsletter for professionals and self-directed investors."
Reader: "Great resource. Cuffelinks is STILL the one and only weekly newsletter I regularly read."
Reader: "Keep it up - the independence is refreshing and is demonstrated by the variety of well credentialed commentators."
Even when the virus is finally contained, the business landscape will look very different. A critical issue is the ability of consumers to find product substitutes. Many people like what they find.
Population decline is a new, yet largely ignored, trend with underrated economic and social costs. Much of the growth that drives economies, especially in Australia, comes from population increases.
It seems counterintuitive, but share prices rose during 17 (85%) of the 20 economic recessions in Australia in the past 150 years as markets tend to anticipate the bad times and recover early.
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.
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.
We cannot throw our hands up in the air and say 'this time around, it's simply too hard'. Having no macro view is unhelpful, but many of the baseline scenarios are overly optimistic, says the former CEO of Westpac and now Chairman of Chi-X Australia.
The ability of countries to support their economies today turns on fiscal practices set well before this crisis. Increasing levels of debt escalate overall risk, and tie our hands in the future.
Downside risks remain and we expect another leg down, but active managers should take advantage of market dislocations. In the current context, humility and risk management are key.
As Australia prepares to relax Covid-19 lockdown restrictions, crucial questions of lives versus livelihoods are being asked. At its most pointed, it's also a matter of lives versus lives.
Free spending by governments risks unsustainably higher debt levels, as deficits matter and must be paid for. Here are four steps investors should consider as previous techniques may not work.
The oil market is as much about geopolitics as it is demand and supply, with regimes controlling much of the global production. Are negative oil prices part of a bigger plan by someone?
As we slowly emerge from the pandemic, there is a small window where everyone is on the same team, fighting a war against a common, invisible enemy. It's an opportunity to make some big decisions.
Afterpay listed at $1 in 2016 and traded recently at $70. How should an investor treat a small holding in a 70-bagger when each new level defies the experts? Should true believers let the profits run?
Stocks have rallied hard creating a virus bubble, but will this run for years or collapse in a matter of months? The market is giving a second chance to leave so head for the exit before there's a rush.
The ability to buy and sell cheaply and quickly in small parcels is both the biggest drawback and benefit of shares. But it encourages people who should not go near the market to use it as a casino.
Taking a realistic view of the median ‘operating expense’ of an SMSF shows they cost less to run than previously claimed. Look at this granular breakdown and see how the costs of running your SMSF compare.
Running a fund should not become a gravy train for boards and investment managers. It is time to address the persistent discounts to NTA on LICs, and there is one especially exciting new structure.
Markets can swing quickly from optimism to pessimism, and while there are more positives now than in the bleak early days in March, the market is ignoring many negatives. Risk is not rewarded at these levels.