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Edition: 386

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Welcome to Firstlinks Edition 386

  • 3 December 2020
  • 1

As vaccine success increases amid economic growth optimism, global fund managers are switching into sectors which lost in 2020, such as into small caps, emerging markets, value over growth and less defensive in cash and bonds. Energy is back in favour.

Hamish Douglass on big tech and life after COVID

On the sidelines of the Morningstar Conference, the Magellan co-founder reflects on the pandemic and which sectors are set to gain and lose. He says we were lucky the pandemic hit when it did (videos and transcripts).

Cost of running an SMSF receives updated judgement

Administration costs can rise for complexity, especially owning property in an SMSF, but fees are highly competitive from a wide range of service providers. The break-even cost is less than previously reported.

Three areas SMSFs should consider outsourcing

SMSF trustees often cite ‘control of my investments’ as the number one motivation for setting up their own fund. But it still makes sense to outsource some parts of a well-diversified portfolio.

Apparently, retirees should learn to SKI

The Retirement Income Review demonstrated limited understanding of the risks faced by self-funded retirees implementing rational human behaviour. Spending to qualify for the age pension is not a solution.

7-point checklist for managing the uncertain timing of death

Average life expectancies are a weak predictor of individual outcomes, and it's better to consider a range of probable lifespans. A plan that lasts to the average will disappoint every second retiree.

'Quality' ETFs under the microscope

Interest in 'quality' factor ETFs has increased this year, helped by very attractive returns. However, not all ETFs are created alike and there are divergences in portfolio traits which investors can identify.

Is growth of zombie companies real or fiction?

Much has been written about the rise of 'zombie firms' which should have gone bankrupt, but new research should be comforting to economists and investors alike, with focus on a particular segment.

Most viewed in recent weeks

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.

What to expect from the Australian property market in 2025

The housing market was subdued in 2024, and pessimism abounds as we start the new year. 2025 is likely to be a tale of two halves, with interest rate cuts fuelling a resurgence in buyer demand in the second half of the year.

The perfect portfolio for the next decade

This examines the performance of key asset classes and sub-sectors in 2024 and over longer timeframes, and the lessons that can be drawn for constructing an investment portfolio for the next decade.

Howard Marks warns of market froth

The renowned investor has penned his first investor letter for 2025 and it’s a ripper. He runs through what bubbles are, which ones he’s experienced, and whether today’s markets qualify as the third major bubble of this century.

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.

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