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Edition: 444

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Welcome to Firstlinks Edition 444 with weekend update

  • 3 February 2022
  • 4

The German word 'schadenfreude' means the pleasure derived from another person's misfortune. It's my guess that many people feel a level of satisfaction at the angst now experienced by some buyers of hot tech stocks, overhyped IPOs, Bitcoin, stonks and memes that thrived in 2020 and 2021 but are struggling in 2022. We look at risk tolerance and loss aversion.

Market fall reveals your risk tolerance and loss aversion

Risk tolerance is highly personal, and is only truly tested when markets are under stress. Even the popular theory of loss aversion is now challenged, so you need to find the balance between risk and sleep.

Five personal checks on your financial health

While good financial health is desirable, it’s often an imprecise concept. A simple universal framework comprising five indicators with benchmarks enables an objective assessment of personal financial health.

Four good reasons to sell stocks now

The most common advice in a market selloff is to hang on for the long term, but that assumes a well-laid, well-maintained plan. That may not be the case for some investors and selling may be worthwhile.

Happy RBA refuses to blink while market runs ahead

Borrowers can relax for a while longer as Reserve Bank Governor Philip Lowe signals he will wait for firm evidence of inflation and wage rises before raising cash rates, but the market is way ahead of him.

Bank hybrids response to equity market weakness

During the GFC, bank hybrids fell heavily as bank equity sold off, but in the last dozen years, hybrids rules have changed and the market seems to accept hybrids are more resilient. What does the price data show?

How risk is managed in private debt investing

The nature of private debt brings lender and borrower closer together. They develop a close relationship and use frequent reporting arrangements that allow timely responses to any change in circumstances.

Understanding and investing in cryptocurrency

In decentralised currency markets like Bitcoin and Ethereum, the market needs to ensure that everyone agrees on the order of transactions. Cryptocurrency miners help this process and are rewarded with digital coins.

Most viewed in recent weeks

Vale Graham Hand

It’s with heavy hearts that we announce Firstlinks’ co-founder and former Managing Editor, Graham Hand, has died aged 66. Graham was a legendary figure in the finance industry and here are three tributes to him.

Warren Buffett is preparing for a bear market. Should you?

Berkshire Hathaway’s third quarter earnings update reveals Buffett is selling stocks and building record cash reserves. Here’s a look at his track record in calling market tops and whether you should follow his lead and dial down risk.

Welcome to Firstlinks Edition 583 with weekend update

Investing guru Howard Marks says he had two epiphanies while visiting Australia recently: the two major asset classes aren’t what you think they are, and one key decision matters above all else when building portfolios.

  • 24 October 2024

A big win for bank customers against scammers

A recent ruling from The Australian Financial Complaints Authority may herald a new era for financial scams. For the first time, a bank is being forced to reimburse a customer for the amount they were scammed.

The gentle art of death cleaning

Most of us don't want to think about death. But there is a compelling reason why we do need to plan ahead, and that's because leaving our loved ones with a mess - financial or otherwise - is not how we want them to remember us.

Why has nothing worked to fix Australia's housing mess?

Why has a succession of inquiries and reports, along with a plethora of academic papers, not led to effective action to improve housing affordability? Because the work has been aimless and unsupported by a national consensus.

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