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Edition: 231

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Welcome to Cuffelinks Newsletter Edition 231

  • 15 December 2017

A bumper final edition for 2017 starts with the year's big bubble. Joe Kennedy was a wealthy Wall Street investor in 1929, and he famously said he exited the market before the crash when a shoeshine boy started giving him stock tips, as there were no more "greater fools" to join the party. Last week, an Uber driver told me he had bought a Bitcoin, he watched the market every day and he was making more money than driving a car. Apparently, the only way is up.

Why most LIC performance reporting is inadequate

Listed Investment Companies on the ASX are currently worth about $37 billion, but their reporting of performance should improve to give investors a better basis for comparison.

LICs: Traders versus investors for tax purposes

The ATO distinguishes between LICs, deeming some as investors for tax purposes and some as traders for tax purposes. This distinction has implications for the way dividends are sourced and capital gains are treated.

What will investment markets deliver in 2018?

The markets successfully negotiated many fear factors in 2017 and rewarded investors. What does 2018 bring for Australian and global shares, listed property and fixed interest?

Inside Investing, Podcast Episode #6

In Episode #6, we discuss the Future Fund versus SMSFs, Telstra's prospects, Geoff Wilson's outlook, ETF trends, LIC reporting and the business case for the stadium rebuilds.

The index investing story could be even better

Passive investing typically incurs less tax than active investing but should be made even more tax-effective by using losses in the portfolio to offset taxable capital gains.

Manufacturing makes a surprising change

The old paradigm that manufacturing will increasingly transfer to low-cost developing countries is being turned on its head by technology advances.

No, Gladys, build it and they won't come

The $2.3 billion allocated by the NSW Government to rebuild two stadiums will haunt them until the next election. Focussing on Allianz Stadium, what's the business case and will crowds increase materially when it's rebuilt?

The ethical investing trend and a Kiwi lesson

Research suggests a strong trend toward responsible and ethical investing. Valuation effects of disclosure in NZ recently were dramatic, and Australian financial institutions should take heed.

Become an informed user of retirement expertise

You can only receive the full benefit of expertise if you're an informed consumer. Can you paint a picture of what your retirement success and failure looks like?

Most viewed in recent weeks

16 ASX stocks to buy and hold forever, updated

This time last year, I highlighted 16 ASX stocks that investors could own indefinitely. One year on, I look at whether there should be any changes to the list of stocks as well as which companies are worth buying now. 

UniSuper’s boss flags a potential correction ahead

The CIO of Australia’s fourth largest super fund by assets, John Pearce, suggests the odds favour a flat year for markets, with the possibility of a correction of 10% or more. However, he’ll use any dip as a buying opportunity.

Retirement is a risky business for most people

While encouraging people to draw down on their accumulated wealth in retirement might be good public policy, several million retirees disagree because they are purposefully conserving that capital. It’s time for a different approach.

Is Gen X ready for retirement?

With the arrival of the new year, the first members of ‘Generation X’ turned 60, marking the start of the MTV generation’s collective journey towards retirement. Are Gen Xers and our retirement system ready for the transition?

Reform overdue for family home CGT exemption

The capital gains tax main residence exemption is no longer 'fit for purpose', due to its inequities, inefficiency, and complexity. Here are several suggestions for adapting or curtailing the concession.

So, we are not spending our super balances. So what!

A Grattan Institute report suggests lifetime annuities as a solution to people not spending their super balances. The issue is whether underspending is the real problem or a sign of more fundamental failings in our retirement system.

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