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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

Howard Marks: the investing game has changed

The famed investor says the rapid switch from globalisation to trade wars is the biggest upheaval in the investing environment since World War Two. And a new world requires a different investment approach.

Welcome to Firstlinks Edition 605 with weekend update

Trump's tariffs and China's retaliatory strike have sent the Nasdaq into a bear market with the S&P 500 not far behind. What are the implications for the economy and markets, and what should investors do now? 

  • 3 April 2025

Pros and cons of Labor's home batteries scheme

Labor has announced a $2.3 billion Cheaper Home Batteries Program, aimed at slashing the cost of home batteries. The goal is to turbocharge battery uptake, though practical difficulties may prevent that happening.

Designing a life, with money to spare

Are you living your life by default or by design? It strikes me that many people are doing the former and living according to others’ expectations of them, leading to poor choices including with their finances.

World's largest asset manager wants to revolutionise your portfolio

Larry Fink is one of the smartest people in the finance industry. In his latest shareholder letter, the Blackrock CEO outlines his quest to become the biggest player in private assets and upend investor portfolios.

4 ways to take advantage of the market turmoil

Every crisis throws up opportunities. Here are ideas to capitalise on this one, including ‘overbalancing’ your portfolio in stocks, buying heavily discounted LICs, and cherry picking bombed out sectors like oil and gas.

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