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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

Building a lazy ETF portfolio in 2026

What are the best ways to build a simple portfolio from scratch? I’ve addressed this issue before but think it’s worth revisiting given markets and the world have since changed, throwing up new challenges and things to consider.

Get set for a bumpy 2026

At this time last year, I forecast that 2025 would likely be a positive year given strong economic prospects and disinflation. The outlook for this year is less clear cut and here is what investors should do.

Meg on SMSFs: First glimpse of revised Division 296 tax

Treasury has released draft legislation for a new version of the controversial $3 million super tax. It's a significant improvement on the original proposal but there are some stings in the tail.

Ray Dalio on 2025’s real story, Trump, and what’s next

The renowned investor says 2025’s real story wasn’t AI or US stocks but the shift away from American assets and a collapse in the value of money. And he outlines how to best position portfolios for what’s ahead.

10 fearless forecasts for 2026

The predictions include dividends will outstrip growth as a source of Australian equity returns, US market performance will be underwhelming, while US government bonds will beat gold.

13 million spare bedrooms: Rethinking Australia’s housing shortfall

We don’t have a housing shortage; we have housing misallocation. This explores why so many bedrooms go unused, what’s been tried before, and five things to unlock housing capacity – no new building required.

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