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Edition: 238

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Cuffelinks Newsletter Edition 238

  • 2 February 2018

What to expect in 2018, Howard Marks, the future of ETFs and LICs, managing diversification and volatility, the Lucky Country and (yes) Bitcoin.

Small and mid-cap resources review 2018

After being shunned by most investors up to early 2016, most commodity prices have experienced stellar growth in the last two years, putting resource companies back in the frame for many portfolios.

Howard Marks and his 'Latest Thinking'

Howard Marks explains that he has never told investors 'it's time to get out', and while he does not see bubble conditions, future returns are likely to be subdued based on current high prices.

Still, very much, the Lucky Country

The phrase 'Lucky Country' was coined to be pejorative, but Australia has managed to acquire wealth and income equality well beyond expectations bestowed on it by chance.

Does fixed income diversify portfolio risk?

Investors shouldn't automatically assume the inclusion of bonds in a portfolio provides diversity against their equity exposure, as correlations can change in volatile markets.

Managing the threat of rising volatility risk

Volatility continues to hit record lows despite political upheaval and the start of interest rate normalisation. But, as inflation continues to take root, can active strategies help investors protect their portfolios from downside risk?

3 predictions for Australian ETFs in 2018

ETFs are seeing the growth in popularity in Australia that overseas markets have experienced for many years, and they could reach $50 billion by the end of 2018. What will drive it?

The reasons LICs have come-of-age

2017 was a watershed year for LICs, not only because of the increase in issues, but the new features that address previous shortcomings.

Bitcoin, pricing dislocation and value investing

Price is what you pay when you buy an asset, and value is what you get. Market price and the intrinsic value of a good or a company share are two different qualities.

Most viewed in recent weeks

It’s time for LICs to die

A high-profile dividend cut and a prominent fund manager’s apology have reignited a long-running debate. If investors can access similar exposures more cheaply and efficiently elsewhere, what exactly is keeping LICs alive?

The retirement scorecard: how many of these questions can you answer?

From the maths of retirement, estimating spending and picking the right asset allocation to survive a poor decade, here are the questions every retiree – current or future – should be able to answer for themselves.

Division 296: the initial moves to make before the windows close

What if the best superannuation strategy isn't about earning more, but acting before your options disappear? Several overlooked planning windows are narrowing, with consequences that can last for decades.

Testamentary trusts: Treasury has picked the wrong reading

A decades-old estate planning tool has survived one tax crackdown only to be caught by another. The surprise isn't who the reform is targeting, but who could end up paying the price for drafting choices made years ago.

Higher yields are creating opportunities in global bonds

Bond markets are adjusting to a new reality, but not in the ways investors expect. With markets repricing and capital competing for attention, investors may need to rethink where resilience and opportunity lie. 

Will investors be better or worse off under new housing tax changes?

Housing tax reforms have sparked warnings of market turmoil and promises of greater fairness. But after modelling nearly two decades of property data, the results suggest winners and losers may not be who many investors expect.

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