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Correlation

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Gold remains solid as Bitcoin melts

Claims that Bitcoin has characteristics of 'digital gold' by protecting against equity market falls in troubled times are not supported by recent price moves. Crypto relies on supporters pumping up speculative gains.

Gold and inflation: what does history tell us?

Multiple factors have seen gold fall in 2021, despite the rise in inflation. But given gold has performed strongly across longer periods of higher inflation, gold may benefit under the current inflation outlook.

Gold over the next decade as other assets lose their shine

While gold has been in a corrective pattern for the last year, a solid case can be made in the coming decade as investors with portfolios concentrated in equities and fixed income struggle for good returns.

The case for a modest allocation to gold in super funds

Given gold is liquid, efficient to allocate to and has a track record of protecting portfolios during equity market turbulence, is it worth a modest allocation to gold in a diversified super portfolio?

BHP v Rio v Fortescue: it's all about the iron ore price

Don’t look at an earnings forecast or a DCF valuation or a broker target price for a mining company. Share price forecasts are only as good as the commodity price assumptions they are based on, and they are a guess.

What drives Australian versus global equity performance?

We tend to think of the 'stockmarket' as one beast, but it pays to know the drivers of the different parts, especially global versus Australian stocks. The outlook favours global due to better sector exposure.

‘Super-defensive equities’ may rescue struggling 60/40 portfolios

The 60/40 portfolio has been the mainstay of 'default' Australian investing, but large allocations to bonds compromise returns when rates are low. Strategies with exposures negatively-correlated to equities are needed.

Managing risk using asset diversification

Investors should construct an ‘optimal portfolio’ that broadly falls on the efficient frontier. A ‘high growth’ balanced portfolio can deliver higher returns with lower risk than equities alone.

What role should hedge funds play now?

After some poor experiences during the GFC, hedge funds offering uncorrelated returns have greater appeal as traditional markets struggle, but don't pay up for simple market exposure.

Why bother with hedge funds?

Despite negative headlines regularly aimed at hedge funds, they experienced strong inflows in the six years until the end of 2015. What are the benefits of hedge funds for a portfolio?

The long and short of hedge funds, Part 2

Part 2 focusses on the criticisms that are often levelled at hedge funds and how to manage these disadvantages to your level of tolerance. The challenge for the hedge fund industry is to deliver more retail-targetted products.

Diversification lessons from the GFC

While diversification makes sense in theory, how did it hold up during the global financial crisis? Follow the crisis through the lens of correlations and diversification.

Most viewed in recent weeks

Is it better to rent or own a home under the age pension?

With 62% of Australians aged 65 and over relying at least partially on the age pension, are they better off owning their home or renting? There is an extra pension asset allowance for those not owning a home.

Too many retirees miss out on this valuable super fund benefit

With 700 Australians retiring every day, retirement income solutions are more important than ever. Why do millions of retirees eligible for a more tax-efficient pension account hold money in accumulation?

Is the fossil fuel narrative simply too convenient?

A fund manager argues it is immoral to deny poor countries access to relatively cheap energy from fossil fuels. Wealthy countries must recognise the transition is a multi-decade challenge and continue to invest.

Reece Birtles on selecting stocks for income in retirement

Equity investing comes with volatility that makes many retirees uncomfortable. A focus on income which is less volatile than share prices, and quality companies delivering robust earnings, offers more reassurance.

Welcome to Firstlinks Election Edition 458

At around 10.30pm on Saturday night, Scott Morrison called Anthony Albanese to concede defeat in the 2022 election. As voting continued the next day, it became likely that Labor would reach the magic number of 76 seats to form a majority government.   

  • 19 May 2022

Comparing generations and the nine dimensions of our well-being

Using the nine dimensions of well-being used by the OECD, and dividing Australians into Baby Boomers, Generation Xers or Millennials, it is surprisingly easy to identify the winners and losers for most dimensions.

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