Key points While growth assets like shares go through bouts of short-term underperformance versus bonds & cash, they provide superior long-term returns. It makes sense that superannuation has a high exposure to them. The best approach is to simply recognise that super and investing in shares is a long-term investment. Introduction After sharp share market […]
Dear Sir/Madam, September has been and gone and we are nearly through October! 9 working weeks until Christmas! Hasn’t the year flown by! With lots of our clients travelling to various parts of Australia, we have been receiving feedback on the devastating effect that the drought is having not only on farmers but also the […]
Dear Sir/Madam, Once again, not a lot to report from our office since our last newsletter. Life is flying by too quickly! We have another travel story for you this month. Our clients, K & J enjoyed a trip down south a few months ago with their caravan and these were the highlights: Lightning Ridge […]
Dear Sir/Madam, Not a lot to report from the office since our last newsletter. We had one of the busiest ends to a financial year’s for a long time with a large number of super contributions to process. Emma and our ‘old faithful’ Monica (ex-staff) recently supported our client Gayle again with her annual bus […]
Key points The ECB and the Fed now clearly look to be heading towards monetary easing, probably from July. We expect two rate cuts this year from the Fed. The shift back towards monetary easing by global central banks against a backdrop of low inflation adds to confidence that global growth will pick up again […]
Key points Australian growth is likely to be weak over the next year or so and this will prompt further monetary easing and fiscal stimulus. However, several positives suggest recession is unlikely: the current account deficit has collapsed; the $A helps stabilise the economy; the drag from falling mining investment is over; there is scope […]
Key points The Australian dollar likely faces more downside as Australian growth is weaker than US growth and the RBA is likely to cut more than the Fed. However, downside may be limited to around $US0.65 given that the $A has already had a large fall, short positions in the $A are large, the iron […]
Dear Sir/Madam, Another enjoyable golf day but with a change of venue resulted in a smaller turn out than normal. The “hole in one” did not go off once again but the drives were closer to the pin than previous years. Hopefully, next year will be the year where someone will get the $10,000! Some […]
Key point My nine most important lessons from investing over the past 35 years are that: there is always a cycle; the crowd gets it wrong at extremes; what you pay for an investment matters a lot; getting markets right is not as easy as you think; investment markets don’t learn; compound interest applied to […]
It’s one of those curious questions people rarely ponder before the time draws uncomfortably near: will we retire together? On the one hand, it makes sense to seize the opportunity to travel and experience this next chapter of your lives together. On the other, how can two people possibly be ready to leave the workforce […]