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Edition: 291

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Cuffelinks Newsletter Edition 291

  • 1 February 2019

Value of forecasts, bond face-off: Chin versus Rochford, know what you own, Howard Marks on tax, ASX trends, deluded expectations, tax notices coming?

Government bonds always have a role in diversified portfolios

Government bonds do not feature in most retail portfolios, but they carry defensive qualities with income to offset the higher risks in other asset allocations. Are they always worth including?

Why bother investing in government bonds?

Government bonds produced good returns last year, but at the current starting position of lower rates, the cost of defensiveness is probably a limited payoff.

Know what you own in complex markets

In some markets, the sheer volume of money flows into both good and bad companies, but when tougher conditions inevitably come, it's the quality earnings that sustain.

Trading trends feature global moves

Notwithstanding the popularity of ETFs, Australians are increasingly trading directly on foreign exchanges as online brokers make execution easier. But traditional local names remain popular.

Great investment expectations are deluded

Many investors are deluding themselves expecting high returns without taking risks, and it has poor consequences for retirement planning and setting goals. It pays to be more realistic.

Is a Division 293 tax notice coming your way?

It sounds arcane but it could be costly. For the first time, about 44,000 individuals will receive their first Division 293 notice early in 2019, and it will surprise many.

Marks and the tax system explained in beer

In his latest memo to clients, Oaktree's Howard Marks quotes the popular 'beer' example to explain the tax system, and we reproduce it here.

Most viewed in recent weeks

Raising the GST to 15%

Treasurer Jim Chalmers aims to tackle tax reform but faces challenges. Previous reviews struggled due to political sensitivities, highlighting the need for comprehensive and politically feasible change.

Which generation had it toughest?

Each generation believes its economic challenges were uniquely tough - but what does the data say? A closer look reveals a more nuanced, complex story behind the generational hardship debate. 

100 Aussies: seven charts on who earns, pays, and owns

The Labor government is talking up tax reform to lift Australia’s ailing economic growth. Before any changes are made, it’s important to know who pays tax, who owns assets, and how much people have in their super for retirement.

Here's what should replace the $3 million super tax

With Div. 296 looming, is there a smarter way to tax superannuation? This proposes a fairer, income-linked alternative that respects compounding, ensures predictability, and avoids taxing unrealised capital gains. 

Chinese steel - building a Sydney Harbour Bridge every 10 minutes

China's steel production, equivalent to building one Sydney Harbour Bridge every 10 minutes, has driven Australia's economic growth. With China's slowdown, what does this mean for Australia's economy and investments?

9 winning investment strategies

There are many ways to invest in stocks, but some strategies are more effective than others. Here are nine tried and tested investment approaches - choosing one of these can improve your chances of reaching your financial goals.

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