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Edition: 195

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Edition 195

  • 24 March 2017

A trader-friend who lives in Illinois USA sent me this chart from The Economist, with the question, "What is it about the old British Empire and house prices?" I replied with the usual stuff on Chinese investment, low interest rates and strong economies, and he came back on the ratios of household debt to GDP, price to disposable income and price to rents. The Economist has a fantastic interactive chart showing 27 countries, but for all their skilled analysis, they've been wrong on Australia since 2002. They now call it 'severely overpriced', and surely we're due at least a flat period.

Four things retirees must know about shares

Investors and financial market professionals underestimate the power of franking credits to enhance returns, especially in pension phase where franking is fully refunded.

You get what you don’t pay for

While there is a role for both active and passive investments in portfolios, the impact of relatively small reductions in management fees can compound to large amounts over a lifetime of saving.

10 grey swans to watch out for

'Grey swans' are surprises that are improbable but more likely to occur than 'black swans', and investors should consider the possible impact on their portfolios. Some of these swans will paddle by this year.

Should we exclude companies purely on ethical grounds?

General principles previously governed ethical investing, but both fund managers and clients now accept the more hard-nosed approach of eliminating certain companies from portfolios.

Big increase in retirees expecting to outlive their savings

New research shows a rapid increase in the proportion of retirees expecting to outlive their savings, and those not yet retired are worried about markets and not saving enough.

Watch premiums and discounts in LICs

Independent Investment Research has released its December Quarter 2016 review of the performance of the 34 LIC's under its coverage. Understand the premiums and discounts to NTA before investing.

Future oil prices: it takes two to contango

US shale oil producers and the combined alliance of OPEC and Russia need one another to maintain the 'sweet spot' in oil sector dynamics and profitability into the future.

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It might not be quite an ‘everything bubble’ but there’s froth in many assets, not just US stocks, right now. It might be time to stress test your portfolio and consider assets that could offer you shelter if trouble is coming.

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