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Edition: 360

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Welcome to Firstlinks Edition 360

  • 3 June 2020
  • 5

Drought, bushfires and coronavirus ... the Treasurer has admitted Australia is in a recession after the fall in the March quarter GDP, but the stock market has rallied strongly driven by the optimism of the stimulus packages. The withdrawal of up to $20,000 from superannuation is understandable for anyone struggling financially during the epidemic, but some young people have more money during this crisis than ever before in their lives.

Small investors miss out as institutions and banks cash in

Retail shareholders are being scaled back and diluted by boards and investment banks. If retail shareholders own 30% of a company, the Share Purchase Plan should represent 30% of the overall raising.

Chris Cuffe on why private debt is a hidden gem

Due to its illiquidity and higher risk, private debt as an asset class will not suit all investors. But for a patient investor with a longer-term horizon, private debt funds can provide a good risk/return trade off.

Three realities and three mistakes in market recoveries

It's not easy focussing on the long term when the short-term news is bad, but strong businesses find a way to thrive when times are tough. Here are three timeless facts and three evergreen mistakes.

Why asset allocations shifted due to COVID-19

Retail investors can learn from a multi-asset strategy that looks how macro events and economics affect market and portfolio risk. Major asset allocation changes can occur in response.

Three key company features in assessing the outlook now

With higher unemployment and cautious consumers, portfolios should be positioned for lower sustainable demand compared with prior levels. Here are three key features of companies in a lower-demand world.

Is Afterpay really worth $50?

How does an analyst value a stock which has traded between $8 and $50 in two months? Regardless, Afterpay has delivered Australia's youngest billionaire, and thousands have enjoyed the wild ride.

Choosing an index fund is more than just the expense ratio

Popular belief is that all index funds are the same, but it pays to follow this framework, which shows there is more to consider than the cheapest management cost. Replicating an index is not easy.

Disruptive technology is fast-forwarding into the future

Global lockdowns have accelerated the adoption of new technologies. The pandemic and resultant economic recession shine a spotlight on societal issues where technology can create solutions.

Media worth consuming - May 2020

Links to dozens of global media articles that do not receive mainstream coverage in Australia. It's sceptical, fun and revealing, often challenging consensus and accepted wisdom.

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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