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Edition: 346

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Welcome to Firstlinks Edition 346

It is times such as this outbreak of coronavirus which test whether a portfolio is properly positioned for a person's risk appetite. A major hurdle to investor success is the urge to do something in reaction to news, especially as market experts are issuing lists of companies which will suffer from the lower activity caused by the virus. We don't yet know how widespread and sustained it will be, and investors take a risk selling out of high-quality companies and then not investing again. The S&P/ASX All Ordinaries Index fell almost 10% last week and the S&P500 is 12% down from recent highs. Consider how investors jumped out of Apple years ago when a quarterly sales figure did not quite meet target.

Kunal Kapoor on different paths to investor success

The Morningstar CEO on democratising investing, why saving in your youth is crucial, and why most investors care more about paying off their debts than comparing their results against benchmarks.

What is the likely effect of COVID-19 on the Australian economy?

Our close links to China mean the impact of the virus could tip the local economy into recession and certain sectors such as resources, education and travel will be harder hit than others.

Do sin stocks really give your portfolio the edge?

Should sin stocks, those companies who engage in activities that are considered unethical or immoral, be excluded from a portfolio, or would this compromise potential performance?

Poor pricing of life insurance products and the impact on Australians

The use of discounted pricing by insurers to attract new business is unsustainable and leaves existing policyholders on higher premiums for what is essentially the same product.

Spotting signs of trouble in a retirement portfolio

Do you risk paying a lot of tax in accumulation phase? Or, if you're in retirement phase, do you face the risk of outliving your asset pool? Two key things to consider in the low-rate world of today.

Media worth consuming - February 2020

Links to dozens of global media articles that often do not receive mainstream coverage in Australia. It's sceptical, fun and revealing, often challenging consensus and accepted wisdom.

Poll results: Equity manager cash allocations

Last week's poll on whether equity managers should be holding large allocations of cash had more than 400 responses. Disclosure is the key to keeping investors happy.

Most viewed in recent weeks

Why it’s time to ditch the retirement journey

Retirement isn’t a clean financial arc. Income shocks, health costs and family pressures hit at random, exposing the limits of age-based planning and the myth of a predictable “retirement journey".

Australia's retirement system works brilliantly for some - but not all

The superannuation system has succeeded brilliantly at what it was designed to do: accumulate wealth during working lives. The next challenge is meeting members’ diverse needs in retirement. 

Australian stocks will crush housing over the next decade, 2025 edition

Two years ago, I wrote an article suggesting that the odds favoured ASX shares easily outperforming residential property over the next decade. Here’s an update on where things stand today.

The 3 biggest residential property myths

I am a professional real estate investor who hears a lot of opinions rather than facts from so-called experts on the topic of property. Here are the largest myths when it comes to Australia’s biggest asset class.

AFIC on the speculative ASX boom, opportunities, and LIC discounts

In an interview with Firstlinks, CEO Mark Freeman discusses how speculative ASX stocks have crushed blue chips this year, companies he likes now, and why he’s confident AFIC’s NTA discount will close.

Where to hide in the ‘everything bubble’

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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