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Edition: 534

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Welcome to Firstlinks Edition 534 with weekend update

  • 9 November 2023
  • 279

Many people in the Firstlinks community have been reading my articles and editorials for 10 years or more, and worked with me for decades before that, and deserve an explanation for why I have suddenly stopped writing each week.

UniSuper's CIO on where he's putting money to work

In a wide-ranging interview, John Pearce explains why the 60/40 portfolio is far from dead, that history is a dangerous guide to the future, his recent investments and how the power dynamics in the market have changed.

Why the ASX 200 has gone nowhere in 16 years

The ASX 200 is around the same price that it was 16 years ago. The poor long-term performance can be largely blamed on our taxation system, which encourages companies to pay out most of their earnings as dividends.

Australia’s housing battle: Interest rates versus supply and demand

Everyone seems to have an opinion on house prices and not all of it is based on fact. Here is an analysis of the current supply and demand factors influencing residential property and the stocks poised to outperform.

Best investments to own during a recession

It's impossible to predict when the next recession will happen. That said, looking at which types of investments have historically fared best during economic downturns can help you limit some of the damage.

Three ASX small caps set to shine in 2024

A turnaround in the fortunes of ASX small caps is overdue after a disappointing 2023. It's important to pick your spots though, and miners and building materials companies look the standouts heading into next year.

The RBA’s QE losses

Accounting losses from a pandemic inspired bond buying spree have wiped out the RBA's equity and more, pushing its balance sheet into negative equity territory. How did it happen and what lessons can be learned?

The far-flung past as prologue

The negative stock/bond correlation from 1998 until 2019 was the anomaly, not the positive relationship that began in 2022. In the years ahead, portfolio diversification should come increasingly from security and manager selection.

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Indexation implications – key changes to 2026/27 super thresholds

Stay on top of the latest changes to superannuation rates and thresholds for 2026, including increases to transfer balance cap, concessional contributions cap, and non-concessional contributions cap.

The missing 30%: how LIC returns are understated, and why it matters

The perceived underperformance of LICs compared to ETFs is due to existing comparison data excluding crucial information, highlighting the need for proper assessment and transparent reporting.

Little‑known government scheme can help retirees tap into $3 trillion of housing wealth

The Home Equity Access Scheme in Australia allows older homeowners to tap into their home equity for retirement income, yet remains underused due to lack of awareness and its perceived complexity.

Origins of the mislabeled capital gains tax ‘discount’

Debate over the CGT discount is intensifying amid concerns about intergenerational equity and housing affordability. This analysis shows that the 'discount' does not necessarily favor property investors.

2 billion reasons to fix retirement income

A proposal to address Australia's 'stranded balances' in retirement by requiring super funds to transition members to pension phase at 65, boosting retirement income and reframing super as a source of income.

Div 296 may mean your estate pays tax on assets your beneficiaries never receive

The new super tax, applying from 1 July, introduces more than just a higher rate on large balances. It brings into focus a misalignment between where wealth sits and where the tax on that wealth ultimately falls.

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