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Edition: 5

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Edition 5

  • 8 March 2013

A focus on important risks that are often overlooked, such as gearing, sequencing, diversified income and career-related. Plus the major disruptions and opportunities in wealth management.

The returns to expect from gearing into shares

How well must the market perform for a geared portfolio to deliver better returns than a normal, ungeared portfolio? Or put another way, if the market index rises or falls 10%, how much will a geared strategy change in value?

Sequencing risk and ways to manage it

Sequencing risk is the risk of experiencing poor investment performance at the wrong time, typically when the portfolio balance is at its greatest. Here are some hints to recognise and manage it.

Don’t spend your career further exposing yourself

We should consider how our investment portfolio interacts with other risks in our lives, including not investing in shares of the company or the industry you are employed by.

Inside the hidden world of diversified income

Diversified income funds have been extremely popular and have performed well recently, but ‘income’ is often not really income at all. If there is a reversal in some or all of the underlying factors, returns are at risk.

Dynamics, disruptions and opportunities

Significant market-shaping forces are in play which will disrupt many wealth management business models, but with change comes opportunity.

Most viewed in recent weeks

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.

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 606 with weekend update

The boss of Australia’s fourth largest super fund by assets, UniSuper’s John Pearce, says Trump has declared an economic war and he’ll be reducing his US stock exposure over time. Should you follow suit?

  • 10 April 2025

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.

An enlightened dividend path

While many chase high yields, true investment power lies in companies that steadily grow dividends. This strategy, rooted in patience and discipline, quietly compounds wealth and anchors investors through market turbulence.

Tariffs are a smokescreen to Trump's real endgame

Behind market volatility and tariff threats lies a deeper strategy. Trump’s real goal isn’t trade reform but managing America's massive debts, preserving bond market confidence, and preparing for potential QE.

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