News Updates
AS IT HAPPENS
In recent weeks, US politicians and economists have been quoting the term 'fiscal cliff' in the media with increasing regularity. The coming fiscal cliff they are referring to would take effect on January 1 2013, after the US elections in November. So what exactly is it? Should Australian investors be worried? Read more here
There's a tug-of-war between optimists and pessimists, between economists, investment journalists and the real estate industry. Are we in a property bubble or on the verge of a recovery? This difference in opinion also seems to depend of your particular vantage point (ie Perth vs Melbourne) and whether you believe economies in the rest of the world will slowly recover or deteriorate. This article, written by Robert Keavney for Money Management Magazine, suggests our 'luck' (in the property market) is about to run out. Read more here. Rick Maggi.
New home sales data released today for May by the HIA confirm that the housing market remains chronically weak right now. This article looks at the outlook for Australian house prices. Rick Maggi Read more here
In addition to providing a brief update on Europe, this note (courtesy of AMP Capital) focusses on the US economy, both in terms of the slowdown evident in some economic indicators and the impending fiscal tightening from January 1 next year. Read more here
Jim O'Neill, Chairman of Goldman Sachs Asset Management, in his latest issue of Viewpoints looks at 20 contradictions regarding the euro area issues. Here are 7 key contradictions... Read more here
With June 30 fast approaching, now is a good time to review your portfolio and plan for the year ahead. And this year, there are a few time sensitive issues surrounding superannuation that you may want to pay particular attention to. Below is a useful checklist which you may want to quickly run through to ensure that you are fully prepared for 2012/13. Rick Maggi EOFY Checklist
Vanguard has formally announced that they will be significantly reducing the investment fees they charge on their most popular funds to well below industry averages. Vanguard recognise the significant impact that costs have on investment returns and with many of their fund fees now dropping to jaw-dropping lows, our clients now have a greater chance of investment success. We congratulate Vanguard. For more information contact us on 9382 8885. Rick Maggi.
Jeff Brunton, Head of Credit Markets (AMP) discusses the benefits of bond funds in an environment of declining interest rates. Rick Maggi. View video here
As June 30 is just around the corner we are moving into the sharp end of the tax season. Tax is major headwind to any investment and everyone has the right to minimise the amount of tax they pay through legal tax planning arrangements. Indeed the after tax return is the critical measure for any investment. But sometimes the desire to reduce tax can blind people to the risks - both investment and legal - that certain tax schemes, sophisticated and otherwise, carry with them. In recent years, the collapse of a number of high-profile agribusiness and financing schemes have painfully served to alert people to the dangers of committing to tax schemes that promise upfront tax benefits and potential investment returns that ultimately never materialised. Last year, the ATO produced a helpful, plain language guide - Understanding tax-effective investments (helping you make the right decisions) on what to look out for among some of the more common types of tax schemes that the ATO has encountered that have caught out both individual investors and businesses. Cynicism often masquerades as wisdom, especially in a post GFC world, so it is important that investors don't become paralysed with fear, taking the easiest route, which is to do nothing. But doing your homework is also an important part of the risk/reward equation, so by all means be optimistic and hopeful, but don't forget to be inquisitive. In other words, don't be afraid to see what you see. Rick Maggi Read Understanding Tax Effective Investments
The Australian love affair with cash has been understandable one since the beginning of the GFC. Where else could you get a guaranteed, government backed asset paying 5% plus while all around was failing miserably? Vanguard's Robin Bowerman highlights investors to the age old 'health warning' that applies to all investments - namely that past performance is no guarantee that the future will deliver the same outcome. Rick Maggi Read here
In this brief article, filled with positive messages, Elm Capital's John Robertson takes a look at the strong start to 2012 and what we might expect for the remainder of 2012, based on modern history. Let's hope he's right. Enjoy! Rick Maggi Read here
The pay-off from the surge in resource investment is at hand, with rapid growth in export volumes now evident and set to continue for the next 5 years, far outweighing any weakness in prices. Read more here. Rick Maggi
US stocks advanced strongly again, sending the Dow Jones up over 200 points, to the highest level since 2007, well past 13,000. Read more here
AMP Capital's Dr Shane Oliver explains where we are in the investment cycle and implications for investors. This is an informative and easy to understand video (approx 9 min) and it reinforces the importance of getting the right mix of assets or 'asset allocation' in your investment or superannuation strategy. Enjoy! Rick Maggi Watch video here
This article, yet another from Dr Shane Oliver, will be interest to all investors, superannuation, pension and wealth accumulators alike. Rick Maggi Read Oliver's Insights
Please read on for information about the new deal. Rick Maggi Wall Street Journal
Utterly exasperated, many would now like to see Greece immediately comply or leave the Eurozone. This article looks at the risks and potential impact. Rick Maggi Read here
At a time when many investors have become jaded and cynical about shares, often tempted to run to the relative 'safety' of cash or bonds, Warren Buffett's shareholder letter explains why it may pay too be a little more patient. Enjoy. Rick Maggi Read article here
(Video) AMP Capital's Dr Shane Oliver series of videos takes a look at 2011 and looks forward into 2012. Worth viewing. Rick Maggi. Watch video
Vanguard's Robin Bowerman focuses on the outstanding performance of bonds during 2011, but also highlights the age old importance of diversification. Rick Maggi Read here
