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Why investors will continue to pay up for the US market and Mag 7

Recent volatility has reflected nervousness about tech stocks in the US and whether they can deliver returns on massive AI investment. With rates set to fall, these stocks and the broader US market should continue to find favour.

Why allocating more to fixed income now makes sense

High bond-equity correlation suggests increased overall portfolio risk, making greater fixed income allocations crucial for managing volatility. While bonds no longer diversify portfolios as much, elevated yields make them attractive. 

The best opportunities in fixed income right now

After more than a decade of pitiful yields, bonds are back offering better prospects for income investors. What are the best ways to take advantage of the market inefficiencies in Australian fixed income?

Why bank hybrids are being priced at a premium

As long as the banks have no desire to pay up for term deposit funding - which looks likely for a while yet - investors will continue to pay a premium for the higher yielding, but riskier hybrid instrument.

The time for bonds has come

Bonds have had a miserable time of it for the past three years. Yet with central banks almost done with interest rate hikes and inflation set to fall towards central bank targets, bonds look primed for a bounce back.

Bond opportunities in a higher rate world

As investors navigate a potential recession and the possibility of higher interest rates for longer, the lure of fixed income is understandable. Here a primer to help investors decide which bonds may be best for them.

Is this the start of a generational bear market in bonds?

It's carnage in bond markets now with bonds potentially heading for a third straight year of losses, something that hasn't happened over the past 100 years. Is this the beginning of a decades-long bond bear market?

Investors need to look beyond bonds for safety

Australian investors have been allocating more to fixed income assets this year. Persistent inflation is a key risk for bonds, and that's where gold can play a diversifying role within an investment portfolio.

Do private investments belong in a diversified portfolio?

While private investments remain a potential source for differentiated equitylike return streams, their structure merits caution for retail investors. These investments can easily turn south without access to high quality teams.

Why are SMSFs holding so much cash?

About 20% of the $890 billion in SMSFs is allocated to cash and term deposits. While understandable to an extent, more of this money is likely to make its way into bonds given the now attractive yields on offer.

Why have bond fund distributions been shrinking?

The momentous rise in government bond yields since last year has had one unexpected effect: shrinking income distributions. This may be surprising given bond managers have been able to reinvest at progressively higher yields.

Hunting for value in fixed income

After a dismal year, bonds' prospects are brightening. For investors looking to maximise returns from investment grade assets while also reducing interest rate risk, asset backed securities and RMBS provide opportunities.

Most viewed in recent weeks

An important Foxtel announcement...

News Corp's plans to sell Foxtel are surprising in that streaming assets Kayo, Binge and Hubbl look likely to go with it. This and recent events in the US show the bind that legacy TV businesses find themselves in.

Warren Buffett changes his mind at age 93

This month, Buffett made waves by revealing he’d sold almost 50% of his shares in Apple in the second quarter. The sale not only shows that Buffett has changed his mind on the stock but remains at the peak of his powers.

Wealth transfer isn't just about 'saving it up and passing it on'

We’ve seen how the transfer of wealth can work well, with inherited wealth helping families grow and thrive for generations, as well as how things can go horribly wrong. Here are tips on how to get it right.

Welcome to Firstlinks Edition 575 with weekend update

A new study has found Australians far outlive people in other English-speaking countries. We live four years longer than the average American and two years more than the average Briton, and some of the reasons why may surprise you.

  • 29 August 2024

A health scare changes my investment plans

Recently, I spent time in hospital for pneumonia. Health issues can clarify what really matters, and one thing became clear to me: 99% of what we think is important is either irrelevant or doesn’t need our immediate attention.

The challenges of building a portfolio from scratch

It surprises me how often individual investors and even seasoned financial professionals don’t know the basics of building an investment portfolio. Here is a guide to do just that, as well as the challenges involved.

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