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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

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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