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Market Volatility

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4 ASX small caps poised for a big year

Are ASX small cap stocks set to play catch-up and outperform their larger peers this year? No one knows for sure, though here are four small cap companies worth considering for your investment portfolio.

How likely are market crashes?

It is well known that equities are subject to both booms and busts, testing the discipline of most investors. New research proposes a framework for assessing the likelihood of large equity market drawdowns.

Clime time: why this time really is different

The impact of higher bond yields is cascading through asset classes as higher costs of capital are factored into prices. While bonds may have some respite near-term, stocks are still the best place for long-term returns.

A world out of sync with inflation

What went up in 2020-21—cryptocurrency, commodities, real estate, and economic growth —has retreated in perfect sequence starting late 2021 and early 2022. Now it is inflation’s turn, though don't tell the Fed that.

Invest in equities until you reach your sleeping point

Benjamin Graham wrote that everyone should hold between 25% and 75% in equities, with the rest in bonds. That's a big range, but equities give the best long-term returns. The right level is the point where you sleep easy.

‘Prepare for war’ with hostile markets

Indexes are up and volatility is down: what's not to like? Recent banking crises are likely to curtail economic activity and company earnings, and that's why now is the time for investors to play it safe.

When markets dive, even the wealthy can lose their heads

A new survey suggests almost all wealthy Australians admit to changing their investment behaviour when the value of their portfolios falls. The market falls of 2022 provided a reality check for many investors.

Market turbulence shows strength of Australian bank T2 bonds

Hybrid securities have gained popularity, though that faith was shaken when Credit Suisse bonds were wiped out. What's overlooked is that it strengthens the case for owning superior quality Australian bank T2 bonds.

Four all-time best charts for every adviser and investor

If the lessons from 30 years of investing could be distilled into one statement, it would be this: the short term is unknowable, but the long term is inevitable. These four best charts demonstrate why.

Time to announce the X-factor for 2022

What is the X-factor - the largely unexpected influence that wasn’t thought about when the year began but came from left field to have powerful effects on investment returns - for 2022? It's time to announce the winner.

Hold fire on your fund manager over short-term declines

Even if you possess godlike skills, you can’t avoid big drawdowns. The lesson for investors is they need to back the long-term track record of their fund manager through the volatility to outperform in their portfolios.

How ‘less pain, some gain’ can smooth your volatile ride

As markets whipsaw, the risk that volatility might undermine investors’ ability to achieve their return objectives looms large. What can investors do to mitigate that risk and avoid falling short of their goals?

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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