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Saturday, 23 January 2021
Recently trending 24 hot stocks and funds for 2021The hazards of asset allocation in a late-stage major bubbleGreat new ways the Government helps retireesSeven steps to easier management of your estateFive reasons Australian small companies are compelling investments
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A long-time advocate of the merits of generating income by investing in industrial companies rather than bonds or deposits checks his 'mothership' chart for the latest results, and continues to feel vindicated.
Regardless of how an investor owns an asset, they need to know how a business is sustainable over the long term. By influencing the activities or behaviour of investee companies, returns can be enhanced.
Despite the wave of optimism currently sweeping markets, some negative factors demand caution. Extraordinarily low interest rates is pushing up equities as investors choose the 'lesser evil' in asset allocations.
The Retirement Income Review has received criticism for compromising future super balances and not supporting the SG increase. The same result as an increase could be achieved by changing two other policies.
At some point, policymakers will turn to the task of deleveraging, to work off massive debt burdens built up during the pandemic. Australia is already ticking the boxes on many policies used in the past.
During COVID, bankruptcy rules have allowed small businesses to trade while insolvent. It may mean an SMSF is hit by the collapse of a business leaving trustees struggling to meet their own legal obligations.
The concept of 'activity-based working', where several people occupy one seat on a particular day, is gone. Businesses will need more space for the same number of people as an offset to the decline in demand.
While the recent Pfizer announcement deserves optimism, the global life sciences supply chain is likely to create more sustainable profits than those in the highly-competitive vaccine market.
The impact of the pandemic on Australia's debt and deficit has forced the government into borrowing on a scale unimaginable at the start of 2020. What are the implications, and what is even more important?
Many listed property stocks were hard hit by COVID, especially in retail, but foot traffic outside Victoria has held up relatively well. Some sectors are now good value for the recovery and less working from home.
Both equity and fixed interest markets now have far greater understanding of which companies will struggle during COVID. Supported by central banks, the markets have bailed out companies facing zero revenues.
The pandemic has boosted food-delivery businesses but is this a permanent change in habits rather than due to short-term lockdowns? Established businesses such as McDonalds and car companies are in on it.
Many investors use the new year to review their portfolios, and in this free ebook, two dozen fund managers and product providers give their best ideas for 2021 - some stocks, some funds, some sectors.
The Grantham article everyone is quoting, in full. "The long, long bull market since 2009 has finally matured into a fully-fledged epic bubble ... this could very well be the most important event of your investing lives."
Last year's retiree checklist of services available was one of our most popular articles. There are some additions for 2021, and while it can take effort to set them up, they can pay off over the long term.
Don't make life difficult for the person trusted to manage your estate. Find the time to arrange your documents, contacts, online accounts and files in a convenient place, including giving them some cash.
Many investors focus primarily on the big listed companies but the smaller end in tech, mining and healthcare outperforms through innovation. Many Australian companies are world-leaders in their speciality.
Categorising post-retirement needs – living, lifestyle, legacy and contingency – creates a framework for retirees. Advisers can translate these needs into investment goals and portfolios.