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Saturday, 28 November 2020
Recently trending The creator of the 4% rule and his own retirementWelcome to Firstlinks Edition 383Seven items your estate plan may have left outGraeme Shaw on why investing is at a pivotal momentAlex Vynokur: ETFs deliver what’s written on the can
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Risk isn’t something to be avoided altogether. To achieve returns beyond the government bond rate, some level of risk must be accepted. Assessing which risks to take and calibrating them is the investor's challenge.
Investors often overlook the capital risk in high-yielding stocks. It's better to ensure capital grows and investors can sell a portion each year to make up for the shortfall in income from dividends.
Many of Australia's bank directors lack crucial skills in technology, operations and HR as part of a broader shortage of experience that is as important in dodging scandals as in business success.
The Total Return Investing approach is elegant, it makes intuitive sense and like many investment strategies, it backtests well. But low rates suggest the theory will not hold in future.
Investors should construct an ‘optimal portfolio’ that broadly falls on the efficient frontier. A ‘high growth’ balanced portfolio can deliver higher returns with lower risk than equities alone.
To avoid retreating from making investment decisions during uncertainty, investors are compelled to rely on 'rules of thumb' to guide them in decision-making. Here are many of the more popular commonly-used rules.
Most companies recognise the benefits of employee diversity for better decision-making, but it's not only about choosing people from different backgrounds. There must be an effective means of aggregating views.
Bond markets are far larger than stockmarkets, and the BBB segments in the largest of all in the corporate market. Many analysts have pointed to potential weaknesses but it pays to look a bit deeper.
Nobody revalues their own home each day in the way they revalue listed equities, but does that mean the value is constant? The daily unit price is calculated in some super funds using unlisted asset valuations.
Housing prices and construction rose dramatically until 2016, and since then, low interest rates are helping home owners weather the storm of falling prices. How long until the blue sky shines again?
The biggest concern that many analysts ignore is that, after house prices begin falling, the savings ratio climbs, reflecting a lack of consumer confidence, leading to a rapid slowdown in the economy.
We may be close to 30 billion connected devices, offering unlimited investment opportunities, but a technology backlash is being fuelled by fear and uncertainty around three burning issues.
The 4% withdrawal rate in retirement is an industry standard, a level where a retiree could be confident of not running out of money. Its creator Bill Bengen explains its use in this interview with Michael Kitces.
One of the downsides of Donald Trump commanding the headlines is that we skim over other significant issues. For example, few Australians read the China Daily News or coverage of its contents, missing official statements that are terrifying hundreds of Australian producers. China says Australia will 'pay tremendously' for its recent lack of respect.
Most people pay cursory attention to estate planning, limited to a will and maybe a chat with the children. Those who want to make their intentions clearer and easier for others should check these quick tips.
Company profits have not improved for many years but higher valuations have been driven by falling rates and excess liquidity. Conditions do not suit a value and contrarian manager but here are some opportunities.
Exchange Traded Funds have moved well beyond indexes to a range of sectors, themes, smart beta and active. They are attracting strong flows from both experienced investors and newcomers.
A mid-pandemic survey of over 1,000 people near or in retirement found three in four are not confident how long their money will last. Only 18% felt their money was safe during a strong economic downturn.