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Edition: 453

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Welcome to Firstlinks Edition 453

  • 7 April 2022
  • 4

'The future ain't what it used to be' and 'It's tough to make predictions, especially about the future' are attributed to Yogi Berra, a great US baseball catcher. But there's one Yogi-ism that does not have much applicability in financial markets at the moment: 'It's like deja vu all over again.' There's a lot we have not seen for a long time, if ever.

Track if your fund manager is taking the best shot

In his final letter as CEO of Amazon, Jeff Bezos implored people to avoid being normal, to nurture their distinctiveness. Fund managers should earn their active fees by building unique, active portfolios.

Australia’s bounty: is it just diversified luck?

Increases in commodity prices have fuelled global inflation while benefiting commodities exporters like Australia. Oftentimes, booms lead to busts and investors need to get the timing right on pricing cycles to be successful.

We need hard conversations about frailty planning

The costs of aged care will only continue to increase as the Baby Boomer generation moves into their frailty years, increasing not only the demand for services but also higher consumer expectations around the quality of service.

Budget cash splash will do more harm than good

Governments borrowing for roads, infrastructure and items that have a long-term payback is good debt, but cash handouts for the sole purpose of getting the government back into power is 'bad' debt.

Why I’m not afraid for Taiwan

Much of the commentary on the impact of Russia's invasion of Ukraine on China and Taiwan lacks a deep understanding of each country's political reality. It may even improve, rather than exacerbate, the China-Taiwan problem.

Hybrids alongside corporate bonds a good balance

Higher distribution levels and potential returns have caused many investors to turn to hybrids for the fixed income portion of their portfolio. Now may be a time to reassess the relative risk-reward balance of the instrument.

Age pension is increasing: what you need to know

Older Australians saw the largest increase in their age pension payments in almost a decade last month. But pensioners receiving aged care will only see $4 of the $20 pension increase.

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?

Testamentary trusts survived the trust tax. The drafting battle has just begun.

The fight over testamentary trusts looked settled. Then the draft legislation arrived. Hidden in a technical detail is a question that could force many families to rethink wills they thought were already future-proof.

Is it time to bail on Australian stocks?

For generations, Australian investors have backed banks, miners and dividends. But has that loyalty come at a cost? A look at the numbers raises an uncomfortable question about where future returns will come from.

The new capital gains tax trap for your portfolio

Investors have long accepted one portfolio rule without much question. A major tax shift could change that calculation entirely, forcing difficult trade-offs between risk, discipline and an overlooked cost lurking beneath.

How the typical Australian Family could save $844,350 in taxes

The value of a testamentary trust is not determined by wealth alone. Depending on circumstances, it can reduce the tax burden on inherited income, create efficiencies and help build intergenerational wealth.

The housing slide could become a crash

House prices are sliding across Australia, yet the most dangerous ingredient for a housing crash is still missing. If job losses surge amid growing economic risks, today's correction could become a historic property downturn.

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