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Edition: 140

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Edition 140

  • 29 January 2016

Back in the saddle for 2016, and it's been a wild ride to start the year. It's a pity the sensational headlines cause investor fear, because nobody knows what the year will bring. The markets may do fine or they may fall further, but a common reaction is to sell as stocks fall in response to 'bad' news, and then miss the subsequent bounce back. Compulsory superannuation has made most people share investors, but it should be part of a long-term retirement strategy.

Poor start to 2016 is not a bad omen for Australian shares

The beginning of 2016 has not been kind to investors holding Australian shares in their portfolios, but that's not necessarily a bad thing. If you take the recommended long-term view, the poor start is history.

What to do with your equity portfolio in 2016

When making decisions on your equity portfolio, try ignoring the noise of the financial media and concentrate on companies that will continue to generate high returns on capital.

Going defensive: option strategies

Investors who want to limit equity market losses while retaining the upside may use put options. The cost for banks seems relatively low at the moment, but understand what you're doing.

Global turmoil likely to make Fed patient

The US Fed has finally lifted interest rates as anticipated, but from here it's especially difficult to predict future rate changes given that current economic conditions would normally dictate lowering rates.

Lessons from Peter Lynch and Dick Smith

Applying the strategy employed by investing legend, Peter Lynch, might have helped understand the demise of electronics retailer Dick Smith well before most equity analysts saw it in the numbers.

Most viewed in recent weeks

Meg on SMSFs: Clearing up confusion on the $3 million super tax

There seems to be more confusion than clarity about the mechanics of how the new $3 million super tax is supposed to work. Here is an attempt to answer some of the questions from my previous work on the issue. 

Welcome to Firstlinks Edition 566 with weekend update

Here are 10 rules for staying happy and sharp as we age, including socialise a lot, never retire, learn a demanding skill, practice gratitude, play video games (specific ones), and be sure to reminisce.

  • 27 June 2024

Australian housing is twice as expensive as the US

A new report suggests Australian housing is twice as expensive as that of the US and UK on a price-to-income basis. It also reveals that it’s cheaper to live in New York than most of our capital cities.

The catalyst for a LICs rebound

The discounts on listed investment vehicles are at historically wide levels. There are lots of reasons given, including size and liquidity, yet there's a better explanation for the discounts, and why a rebound may be near.

The iron law of building wealth

The best way to lose money in markets is to chase the latest stock fad. Conversely, the best way to build wealth is by pursuing a timeless investment strategy that won’t be swayed by short-term market gyrations.

How not to run out of money in retirement

The life expectancy tables used throughout the financial advice and retirement industry have issues and you need to prepare for the possibility of living a lot longer than you might have thought. Plan accordingly.

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