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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.

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2024/25 super thresholds – key changes and implications

The ATO has released all the superannuation rates and thresholds that will apply from 1 July 2024. Here's what’s changing and what’s not, and some key considerations and opportunities in the lead up to 30 June and beyond.

Five months on from cancer diagnosis

Life has radically shifted with my brain cancer, and I don’t know if it will ever be the same again. After decades of writing and a dozen years with Firstlinks, I still want to contribute, but exactly how and when I do that is unclear.

Uncomfortable truths: The real cost of living in retirement

How useful are the retirement savings and spending targets put out by various groups such as ASFA? Not very, and it's reducing the ability of ordinary retirees to fully understand their retirement income options.

Is Australia ready for its population growth over the next decade?

Australia will have 3.7 million more people in a decade's time, though the growth won't be evenly distributed. Over 85s will see the fastest growth, while the number of younger people will barely rise. 

Why LICs may be close to bottoming

Investor disgust, consolidation, de-listings, price discounts, activist investors entering - it’s what typically happens at business cycle troughs, and it’s happening to LICs now. That may present a potential opportunity.

The public servants demanding $3m super tax exemption

The $3 million super tax will capture retired, and soon to retire, public servants and politicians who are members of defined benefit superannuation schemes. Lobbying efforts for exemptions to the tax are intensifying.

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