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Edition: 189

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Edition 189

  • 10 February 2017

What to believe? Nobel Laureate, Eugene Fama, is often described as 'the Father of Finance' for his work on portfolios, asset pricing and share markets. Yet in a recent research paper looking at 50 years of modern finance, he says most asset pricing models fail, we don't know how to calculate the cost of capital, and betas for individual stocks are "garbage". He describes behavioural economics as "mostly just dredging for anomolies".

The Dow hitting 20,000 and what it hides

Investors celebrated when the Dow broke through the 20,000 mark last month, but in real terms, it's a more sobering picture. Australian stocks in particular are struggling to reach their previous heights.

Monica's Q&A on $1.6 million super rules

Monica answers questions on her article on the $1.6 million cap. As she will be unable to answer more questions directly for a while, consider registering for her upcoming webinar.

The dramatic tale of two hybrids, CBA VII versus VIII

Issued just 18 months apart, two of CBA's preference share issues, PERLS VII and PERLS VIII, experienced vastly different market receptions and showed hybrids can also be volatile.

Lessons for roboadvice in Centrelink debacle

Centrelink is facing a robo-debt backlash after using computers to check ATO records, replacing the usual human interaction. Likewise, roboadvice algorithms need to know more about the circumstances of clients.

A robo response: digital wealth advice will engage at all levels

A response to Graham Hand's article on lessons for roboadvice, explaining how enhancements to digital wealth management are embracing the adjacent role of human advisers.

Negative gearing doubts and ATO watches home purchasers

Housing affordability is a political no-go zone although the longer term survival of negative gearing is doubtful. The ATO is keeping a close watch on agents to check whether property is selling to foreign investors.

The SMSF sector by the numbers

The ATO's annual statistics on superannuation assets shows that SMSFs continue to grow but not as quickly as institutional funds, as the older age demographics of SMSF retirees made less net contributions.

Update on LIC developments

Independent Investment Research's January 2017 review of LICs explains recent rating suspensions, new fund listings on the ASX as well as pricing and performance data.

Most viewed in recent weeks

Origins of the mislabeled capital gains tax ‘discount’

Debate over the CGT discount is intensifying amid concerns about intergenerational equity and housing affordability. This analysis shows that the 'discount' does not necessarily favor property investors.

Little‑known government scheme can help retirees tap into $3 trillion of housing wealth

The Home Equity Access Scheme in Australia allows older homeowners to tap into their home equity for retirement income, yet remains underused due to lack of awareness and its perceived complexity.

2 billion reasons to fix retirement income

A proposal to address Australia's 'stranded balances' in retirement by requiring super funds to transition members to pension phase at 65, boosting retirement income and reframing super as a source of income.

The ultimate superannuation EOFY checklist 2026

Here is a checklist of 28 important issues you should address before June 30 to ensure your SMSF or other super fund is in order and that you are making the most of the strategies available.

Div 296 may mean your estate pays tax on assets your beneficiaries never receive

The new super tax, applying from 1 July, introduces more than just a higher rate on large balances. It brings into focus a misalignment between where wealth sits and where the tax on that wealth ultimately falls.

Do super funds need a massive wake up call?

UK retirement expert, Guy Opperman, believes super funds are failing at supporting members in deaccumulation. Here is what Australia should do about it. 

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