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Edition: 423

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Welcome to Firstlinks Edition 423 with weekend update

  • 2 September 2021
  • 3

We focus on asset allocation at a critical time when bonds offer limited income and stockmarkets are priced at all-time highs. On his 94th birthday, we reprise our interviews with Nobel Laureate, Harry Markowitz, the father of Modern Portfolio Theory, check how the head of the US Federal Reserve invests his personal wealth and review the Future Fund's assets. It's also the week when 13 super funds were named and shamed.

Investing like Jerome Powell or the Future Fund

Most of us try a version of tactical asset allocation. The good news is the range of investments available has improved significantly, and anyone can become a version of the Future Fund or Jerome Powell.

Christian Baylis on financial repression in fixed income

Financial repression is suddenly part of our lexicon, but what is it and how can a fixed income fund take advantage of it? And why it is better to manage smaller amounts than multi-billion portfolios.

Is this really the best way to remove the super underperformers?

The YFYS annual performance test neither measures the return members achieve, nor adequately measures the risks a fund took in achieving the returns, yet it is likely to change the way funds behave.

The looming excess of housing and why prices will fall

Never stand between Australian households and an uncapped government programme with $3 billion in ‘free money’ to build or renovate their homes. But excess supply is coming with an absence of net migration.

Harry Markowitz's 'aha moment' in asset allocation

Harry Markowitz is the 1990 Nobel Laureate and Pensions & Investments Magazine's 'Man of the Century'. For his 94th birthday, he explains the magic moment of his Modern Portfolio Theory and Efficient Frontier work.

Gold over the next decade as other assets lose their shine

While gold has been in a corrective pattern for the last year, a solid case can be made in the coming decade as investors with portfolios concentrated in equities and fixed income struggle for good returns.

Latest 'Wealth of Experience' podcast

This episode of Wealth of Experience discusses who won and lost in August reporting, missing the point on franking, how tax reform picks favourites, two grumps, and features an interview with Christian Baylis.

Most viewed in recent weeks

How much do you need to retire comfortably?

Two commonly asked questions are: 'How much do I need to retire' and 'How much can I afford to spend in retirement'? This is a guide to help you come up with your own numbers to suit your goals and needs.

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. 

The secrets of Australia’s Berkshire Hathaway

Washington H. Soul Pattinson is an ASX top 50 stock with one of the best investment track records this country has seen. Yet, most Australians haven’t heard of it, and the company seems to prefer it that way.

How long will you live?

We are often quoted life expectancy at birth but what matters most is how long we should live as we grow older. It is surprising how short this can be for people born last century, so make the most of it.

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.

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

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