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Edition: 189

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Edition 189

  • 10 February 2017

What to believe? Nobel Laureate, Eugene Fama, is often described as 'the Father of Finance' for his work on portfolios, asset pricing and share markets. Yet in a recent research paper looking at 50 years of modern finance, he says most asset pricing models fail, we don't know how to calculate the cost of capital, and betas for individual stocks are "garbage". He describes behavioural economics as "mostly just dredging for anomolies".

The Dow hitting 20,000 and what it hides

Investors celebrated when the Dow broke through the 20,000 mark last month, but in real terms, it's a more sobering picture. Australian stocks in particular are struggling to reach their previous heights.

Monica's Q&A on $1.6 million super rules

Monica answers questions on her article on the $1.6 million cap. As she will be unable to answer more questions directly for a while, consider registering for her upcoming webinar.

The dramatic tale of two hybrids, CBA VII versus VIII

Issued just 18 months apart, two of CBA's preference share issues, PERLS VII and PERLS VIII, experienced vastly different market receptions and showed hybrids can also be volatile.

Lessons for roboadvice in Centrelink debacle

Centrelink is facing a robo-debt backlash after using computers to check ATO records, replacing the usual human interaction. Likewise, roboadvice algorithms need to know more about the circumstances of clients.

A robo response: digital wealth advice will engage at all levels

A response to Graham Hand's article on lessons for roboadvice, explaining how enhancements to digital wealth management are embracing the adjacent role of human advisers.

Negative gearing doubts and ATO watches home purchasers

Housing affordability is a political no-go zone although the longer term survival of negative gearing is doubtful. The ATO is keeping a close watch on agents to check whether property is selling to foreign investors.

The SMSF sector by the numbers

The ATO's annual statistics on superannuation assets shows that SMSFs continue to grow but not as quickly as institutional funds, as the older age demographics of SMSF retirees made less net contributions.

Update on LIC developments

Independent Investment Research's January 2017 review of LICs explains recent rating suspensions, new fund listings on the ASX as well as pricing and performance data.

Most viewed in recent weeks

Retirement income expectations hit new highs

Younger Australians think they’ll need $100k a year in retirement - nearly double what current retirees spend. Expectations are rising fast, but are they realistic or just another case of lifestyle inflation?

Four best-ever charts for every adviser and investor

In any year since 1875, if you'd invested in the ASX, turned away and come back eight years later, your average return would be 120% with no negative periods. It's just one of the must-have stats that all investors should know.

Why super returns may be heading lower

Five mega trends point to risks of a more inflation prone and lower growth environment. This, along with rich market valuations, should constrain medium term superannuation returns to around 5% per annum.

The hidden property empire of Australia’s politicians

With rising home prices and falling affordability, political leaders preach reform. But asset disclosures show many are heavily invested in property - raising doubts about whose interests housing policy really protects.

Preparing for aged care

Whether for yourself or a family member, it’s never too early to start thinking about aged care. This looks at the best ways to plan ahead, as well as the changes coming to aged care from November 1 this year.

Our experts on Jim Chalmers' super tax backdown

Labor has caved to pressure on key parts of the Division 296 tax, though also added some important nuances. Here are six experts’ views on the changes and what they mean for you.        

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