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We need to limit retail investor harm from CFDs

A Contract for Difference (CFD) is a highly-leveraged investment used for speculative and gambling activities by retail investors without the knowledge to take such risks. ASIC is struggling to control the product.

Are bond yields lower forever or is the Big Bang coming?

The signs are that bond yields could stay low for a long time. This has important implications for future returns, but are we heading for the Big Bang, the Big Crunch or the Steady State?

The role of financial markets when earnings are falling

Everything is rising in value because there is excess capital chasing too few opportunities. Capital should be allocated more responsibly with a focus on the future cash flow from a company.

Welcome to the Great Australian Deleveraging

The biggest concern that many analysts ignore is that, after house prices begin falling, the savings ratio climbs, reflecting a lack of consumer confidence, leading to a rapid slowdown in the economy.

Will the Royal Commission end our debt obsession?

The tightening of credit conditions for home lending driven by the Royal Commission has not fully translated into aggregate statistics, and the slowdown may already be worse than we realise.

Bankers must realise they are fiduciaries

The fiduciary duty of banks, while not legislated, is implied by their central role in the economy. Bank deposits are accepted as 'money', and public confidence in banks is fundamental to a functioning economy.

Defaulting into a world without growth

Global debt levels have increased significantly over the last decade, but not to fund new businesses or productive assets. When debt funds growth and growth fuels debt, can we continue to push the problem into the future?

Mortgage funds: if only we had a trendier name, like P2P

Mortgage funds still suffer from the poor reputation earned during the GFC, and are not well supported by investors. When the asset is a first registered mortgage over real property, some structures are worth a look.

Financial leverage in real estate: friend or foe?

Financial leverage is already built into many real estate funds and companies, and borrowing even more to invest can produce spectacular results - on both the upside and the downside.

Is a debt bonfire building?

Findings from three recent seminal papers highlight the rapidly growing levels of debt across the world, which at some time is likely to impact future investment returns and economic growth. Are you prepared?

Think about risks as well as returns

We focus far more on the return from our investments rather than the risk, and we should watch for leverage or high risk-taking and expect to be rewarded for it to pay for the added risk.

The decline of margin lending

Investments using margin loans must at least cover the cost of interest and other fees, currently around 8%. Fewer investors are using these products, but how long until we fall in love all over again?

Most viewed in recent weeks

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 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.

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

Keep mandatory super pension drawdowns halved

The Transfer Balance Cap limits the tax concessions available in super pension funds, removing the need for large, compulsory drawdowns. Plus there are no requirements to draw money out of an accumulation fund.

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