Looking back on the first half of this year, it’s amazing how the dominant market narrative – of being long US assets – quickly changed.
In January, investors were in love with American ‘exceptionalism’. Most of the major super funds were quoted in the media as being happily overweight US equities. They were joined by many of the world’s biggest fund ...
Investors are bombarded with tips on how to win in the stock market. Pick this stock; choose that stock. Follow this expert; follow that expert. Ride this new theme; ride that new theme.
There’s so much information out there that it can be confusing even for seasoned investors.
What often happens is that many investors don’t have a specific investment ...
In 1789 Benjamin Franklin wrote in a letter that “nothing is certain except for death and taxes”. Over 200 years later, the certainty of death and taxes remains true, and in superannuation, the connection between death and taxes is significant. Many individuals are rethinking their superannuation strategies in light of proposed changes to the taxation ...
For the umpteenth time, tax reform is back on the agenda—this time as the centrepiece of Treasurer Jim Chalmers’ latest economic summit aimed at lifting productivity. He’s now positioning himself as a champion of efficiency and a warrior against red tape. But it’s hard to take that seriously when, according to recent reports, the Albanese government ...
Two and a halve years have passed since financial markets, and the world at large, woke up to a new technological break-through labeled Generative Artificial Intelligence.
By now, it seems initial investor euphoria has been replaced with scepticism about the importance of the new technology promise. It's reflected in share prices dipping lower and not ...
For about a decade, real interest rates were a prominent factor driving the gold price (Chart 1), i.e. gold was inversely correlated with real rates, with gold becoming less attractive as real interest rates rose. Since 2022, however, this inverse correlation has again been counterbalanced by other factors. As real rates rose – currently sitting above ...
With the RBA cutting the cash rate for a second time this year in May and the expectation for further rate cuts to come, is now the time to be investing in small caps?
The rate cut in May combined with the pause on tariffs by the Trump administration saw markets rally in May with the S&P/ASX Small Ordinaries Accumulation Index outperforming large ...
There is lots of speculation about the risks of China and the United States going to a hot war. But a close examination suggests that China has already been in a ‘grey war’, a cyberwar, with the United States for several years now.
What is the grey war? It is obviously between black and white. We should not think of war and peace in binary terms, but ...
The first half of the year is over and how have markets fared?
The All Ordinaries Index returned 4.2% for the half and 9.5% for the financial year. That’s pretty solid given the numbers exclude dividends and compare to total returns of close to 10% per annum over the past century.
However, Aussie stocks again lagged the US. The S&P 500 returned ...
In my previous article, I derived break-even super tax rates required to allow for the cost of not being able to access super savings for up to decades. These rates increase with marginal income tax rates, yielding tax concessions adjusted for illiquidity, that rise with marginal rates. This analysis comes at a time when the proposed Division 296 ...
Labor first announced the $3 million super tax way back in February 2023 yet debate about its merits has only started to heat up since the election.
The government wants to increase the rate of tax on earnings from 15% to 30% on the portion of superannuation balances of more than $3 million. Critics have homed in on two areas of the plan. First, the ...
Self-managed super funds (SMSFs) in Australia have some peculiar attributes, the most glaring being the almost complete rejection of international assets in their asset allocations and a seemingly unhealthy obsession with relatively low yielding cash deposits. Just 3% of SMSF assets are allocated to offshore investments and a massive 16% of assets are ...
Looking back on the first half of this year, it’s amazing how the dominant market narrative – of being long US assets – quickly changed.
In January, investors were in love with American ‘exceptionalism’. Most of the major super funds were quoted in the media as being happily overweight US equities. They were joined by many of the world’s biggest fund ...
Investors are bombarded with tips on how to win in the stock market. Pick this stock; choose that stock. Follow this expert; follow that expert. Ride this new theme; ride that new theme.
There’s so much information out there that it can be confusing even for seasoned investors.
What often happens is that many investors don’t have a specific investment ...
In 1789 Benjamin Franklin wrote in a letter that “nothing is certain except for death and taxes”. Over 200 years later, the certainty of death and taxes remains true, and in superannuation, the connection between death and taxes is significant. Many individuals are rethinking their superannuation strategies in light of proposed changes to the taxation ...
For the umpteenth time, tax reform is back on the agenda—this time as the centrepiece of Treasurer Jim Chalmers’ latest economic summit aimed at lifting productivity. He’s now positioning himself as a champion of efficiency and a warrior against red tape. But it’s hard to take that seriously when, according to recent reports, the Albanese government ...
Two and a halve years have passed since financial markets, and the world at large, woke up to a new technological break-through labeled Generative Artificial Intelligence.
By now, it seems initial investor euphoria has been replaced with scepticism about the importance of the new technology promise. It's reflected in share prices dipping lower and not ...
For about a decade, real interest rates were a prominent factor driving the gold price (Chart 1), i.e. gold was inversely correlated with real rates, with gold becoming less attractive as real interest rates rose. Since 2022, however, this inverse correlation has again been counterbalanced by other factors. As real rates rose – currently sitting above ...
With the RBA cutting the cash rate for a second time this year in May and the expectation for further rate cuts to come, is now the time to be investing in small caps?
The rate cut in May combined with the pause on tariffs by the Trump administration saw markets rally in May with the S&P/ASX Small Ordinaries Accumulation Index outperforming large ...
There is lots of speculation about the risks of China and the United States going to a hot war. But a close examination suggests that China has already been in a ‘grey war’, a cyberwar, with the United States for several years now.
What is the grey war? It is obviously between black and white. We should not think of war and peace in binary terms, but ...
The first half of the year is over and how have markets fared?
The All Ordinaries Index returned 4.2% for the half and 9.5% for the financial year. That’s pretty solid given the numbers exclude dividends and compare to total returns of close to 10% per annum over the past century.
However, Aussie stocks again lagged the US. The S&P 500 returned ...
In my previous article, I derived break-even super tax rates required to allow for the cost of not being able to access super savings for up to decades. These rates increase with marginal income tax rates, yielding tax concessions adjusted for illiquidity, that rise with marginal rates. This analysis comes at a time when the proposed Division 296 ...
Labor first announced the $3 million super tax way back in February 2023 yet debate about its merits has only started to heat up since the election.
The government wants to increase the rate of tax on earnings from 15% to 30% on the portion of superannuation balances of more than $3 million. Critics have homed in on two areas of the plan. First, the ...
Self-managed super funds (SMSFs) in Australia have some peculiar attributes, the most glaring being the almost complete rejection of international assets in their asset allocations and a seemingly unhealthy obsession with relatively low yielding cash deposits. Just 3% of SMSF assets are allocated to offshore investments and a massive 16% of assets are ...
