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Edition: 321

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Welcome to Firstlinks Edition 321

  • 29 August 2019

More falls in cash rates and Josh Frydenberg's advice to boards to stop paying special dividends and making buy backs would mean further income reductions for investors. The Reserve Bank hopes moving from 1% to 0.5% would stimulate the economy, but what about the withdrawal of spending power from millions relying on their savings?

Magellan’s Vihari Ross on the players in the team

The companies that earn a place in an investment portfolio are like the players in a sporting team. They must perform strongly and complement each other, and not keep someone out who is better.

Why you should be wary of share buy backs

This week, Treasurer Josh Frydenberg told Australia companies to invest in growth rather than return capital or buy back their own shares. There are other reasons to check the merit of buy backs.

How to spot genuine pricing power

Look for a company whose prices are rising faster than inflation without customer churn, while leveraging its existing strong relationships to cross sell or up sell or some mix of both.

Four things advisers can do to manage conflicts

Thanks to the Royal Commission, everybody is aware of the problems with vertical integration and in-house conflicts for financial advisers. What should advisers and their clients look for?

Finding safety and returns in a low interest rate world

Bonds markets have continued to defy the notion that low yields imply low returns, and most investors need the solid foundation that bonds give to a portfolio.

Six suspects in the murder of inflation

The market has been looking for inflation for most of the last decade. Low interest rates should increase consumption, borrowing and demand and result in higher prices. What killed inflation?

What do negative rates and other RBA moves mean for investors?

The RBA is likely to first exhaust conventional easing by cutting the cash rate to 0.5% by year end before deploying unconventional measures. Negative interest rates are unlikely.

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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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