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Edition: 159

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Edition 159

  • 10 June 2016

Most investors around the world have a home country bias. They feel safer in the stocks and bonds they know. Warren Buffett has instructed the trustee of his estate for his wife's benefit to: "Put 10% of the cash into short-term government bonds and 90% in a very low-cost S&P500 index fund." That's 100% exposure to one country.

How Japan’s 'Abe-nomics' affects Australian investments

The close relationship between the Japanese share market, Japanese yen and the Australian share market shows that Japanese economic policy and a further boost from 'Abe-nomics' may have implications here.

Opportunity knocks in global small caps

Global small caps have outperformed large caps over the last 15 years, and offer sector and country diversity for Australian investors worthy of a small allocation in a portfolio, modelled at about 5%.

The investment case for Europe

Australian investors may be wary of the European share market with Greece and Brexit in the news, but there's a good investment and diversification case, with access now made easier by Europe equity ETFs listed on the ASX.

What tax deductions are available to property investors?

There are plenty of costs associated with owning an investment property, and a major one is the depreciation of assets. It's vital to claim the full range of legitimate tax deductions as part of the economics of investing.

The amazing world of exotic assets in SMSFs

SMSFs hold some of the most bizarre assets imaginable, challenging auditors required to value them and verify ownership. New rules and compliance obligations for trustees are fast approaching.

Surprising negative gearing and capital gains survey results

Negative gearing and capital gains policies are points of difference between the two major political parties, and our survey shows a preference for change but not towards the policy proposed by Labor.

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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