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Edition: 220

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Edition 220

  • 22 September 2017

I am in Tel Aviv, gaining insights into why Israel is one of the leading start-up and innovation nations in the world. It’s driven by a complex mix of risk-taking confidence, military influences, self-determined dynamism and downright belligerence. Israelis seem proud to be called argumentative and impatient, and this pushes creativity and change.

The truth on three big indexing questions

Indexing has come under increasing criticism as it has grown rapidly. Three issues dominate the arguments but the indexing benefits of low cost and diversification means active and index funds have a symbiotic relationship.

The paradox of passive investing

The rapid rise in investments into passive vehicles is having a distortive effect on markets as the flows are prone to sudden reversals. The cheap cost may come with a paradoxical result.

Investment innovation beyond the status quo

Large super funds have been successful in delivering strong investment returns, but the changing nature of the sector means more investment innovation is necessary for continuing long-term success.

Bond demand is dumb, dumber and dumbest

A sign that the strong credit cycle is ending is the funding of some emerging market governments that are more than likely to default, but demand is driven by desire for yield regardless of risk.

LIC reporting season wrap for 2017

LICs have generally retained their dividends despite some softness in income received from underlying investments, and three prominent, longstanding LICs are worth a look at current prices.

Why the times suit active fixed interest

With the 35-year bull market in bonds coming to an end, passive fixed interest portfolios are at the mercy of the index’s high levels of interest rate risk and compositional skew towards low return investments.

Six ways to improve your term deposit outcome

Leaving a term deposit to rollover automatically at the end of each term will almost certainly guarantee a worse return than if you read the rollover letter and do some research instead.

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Australian stocks will crush housing over the next decade, one year on

Last year, I wrote an article suggesting returns from ASX stocks would trample those from housing over the next decade. One year later, this is an update on how that forecast is going and what's changed since.

Australia’s shameful super gap

ASFA provides a key guide for how much you will need to live on in retirement. Unfortunately it has many deficiencies, and the averages don't tell the full story of the growing gender superannuation gap.

9 lessons from 2024

Key lessons include expensive stocks can always get more expensive, Bitcoin is our tulip mania, follow the smart money, the young are coming with pitchforks on housing, and the importance of staying invested.

The 20 most popular articles of 2024

Check out the most-read Firstlinks articles from 2024. From '16 ASX stocks to buy and hold forever', to 'The best strategy to build income for life', and 'Where baby boomer wealth will end up', there's something for all.

2025: Another bullish year ahead for equities?

2024 was a banner year for equities, with a run-up in US tech stocks broadening into a global market rally, and the big question now is whether the good times can continue? History suggests optimism is warranted.

Time to announce the X-factor for 2024

What is the X-factor - the largely unexpected influence that wasn’t thought about when the year began but came from left field to have powerful effects on investment returns - for 2024? It's time to select the winner.

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