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Edition: 609

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Welcome to Firstlinks Edition 609 with weekend update

  • 1 May 2025
  • 2

Have big super funds been late to the party and piled into alternative assets and the ‘Magnificent Seven’ stocks at the wrong time? With sentiment souring on private equity and US tech, we may be about to find out.

How to choose a good fund manager

Despite the rise of passive investing, Australia has a number of top shelf fund managers who have consistently outperformed indices over the long-term. This looks at how to identify the best active funds for your portfolio.

Key factors behind the housing supply crisis

Australia’s housing supply is falling far short of demand, driving up prices and rents. With approvals down, costs up, and planning delays rampant, the next generation may not forget - or forgive - this crisis. 

Electricity transmission is Australia's next problem

Australia’s energy transition will take decades to complete because new renewable generating capacity in the far-flung locations will require transmission capacity to be added. And we're well behind schedule on this.

Family trusts and relationship breakdowns

Trusts offer flexibility and asset protection, but in relationship breakdowns, courts can 'look through' them. Understanding control, purpose, and asset origins is key to preserving trust benefits in family law disputes.

Selling your holiday home? You may be able to pay less tax

Selling your holiday home can make a lot of sense, but it can also lead to a big tax bill. Fortunately, there are strategies that investors can use to boost their retirement balance and cut their capital gains liability.

Why it's time to revisit the case for non-US stocks

History shows that global equity returns tend to be cyclical and that outperformance between regions can flip. After years of underperformance, there are growing reasons to add non-US equities to a diversified portfolio today.

Should America follow Australia with a sovereign wealth fund?

While appointing a seasoned banker to lead a US sovereign wealth fund sounds promising, the plan itself could expose the country to massive risks, market distortions, and dangerous expansions of presidential power. 

Most viewed in recent weeks

Maybe it’s time to consider taxing the family home

Australia could unlock smarter investment and greater equity by reforming housing tax concessions. Rethinking exemptions on the family home could benefit most Australians, especially renters and owners of modest homes.

Supercharging the ‘4% rule’ to ensure a richer retirement

The creator of the 4% rule for retirement withdrawals, Bill Bengen, has written a new book outlining fresh strategies to outlive your money, including holding fewer stocks in early retirement before increasing allocations.

Simple maths says the AI investment boom ends badly

This AI cycle feels less like a revolution and more like a rerun. Just like fibre in 2000, shale in 2014, and cannabis in 2019, the technology or product is real but the capital cycle will be brutal. Investors beware.

Why we should follow Canada and cut migration

An explosion in low-skilled migration to Australia has depressed wages, killed productivity, and cut rental vacancy rates to near decades-lows. It’s time both sides of politics addressed the issue.

Are franking credits worth pursuing?

Are franking credits factored into share prices? The data suggests they're probably not, and there are certain types of stocks that offer higher franking credits as well as the prospect for higher returns.

Are LICs licked?

LICs are continuing to struggle with large discounts and frustrated investors are wondering whether it’s worth holding onto them. This explains why the next 6-12 months will be make or break for many LICs.

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