Markets slump...
The Australian share market fell to a two-month low this afternoon, led by miners, as Greece's political leaders prepare for a second election in just over a month. Read more here.
18/04/12: Tax Effective Investments - Be careful!
Be inquisitive...
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
13/04/12: When cash is king, what does tomorrow hold?
The importance of diversification...
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
13/04/12: Some encouraging modern history...
March quarter foreshadows strong returns ahead...
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
14/03/12: Dow Rises to Highest Level Since 2007
Good news...
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
08/03/12: Investing with an eye on the big market cycles
Where are we in the economic cycle?
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
24/02/12: Low return world ten years on...
...and what does it mean for investing?
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
13/02/12: Warren Buffett: Why stocks beat gold and bonds
Warren Buffet
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
20/12/11: The year ahead...
A year of disasters
(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
13/12/11: Should we be concerned about 2012?
Oliver's Insights
AMP Capital's Dr Shane Oliver looks back on 2011 and, perhaps more importantly, takes a balanced and rational look forward into 2012. Next year could be better than many expect. Rick Maggi. Read Shane Oliver's report
12/12/11: Europe Update:
Progress?
Significant challenges lay ahead for Europe, last Friday's fiscal 'compact' was a step in the right direction. Rick Maggi Read more
02/12/11: December 2011 Snapshot
Hedging against uncertainty
This month's snapshot focuses on the impact of hedging the international component of your investment or superannuation portfolio. This is an area we've been urging our clients to consider for quite some time as the performance difference between a currency hedged international fund versus unhedged (the vast majority of Australians have unhedged funds) can be miles apart in the shorter term. Rick Maggi December 2011 Snapshot
04/11/11: Shares and the long term - how long is long?
A timely reminder
As Greece assesses it's options, bringing global markets on an emotional roller coaster along the way, AMP Capital's Dr Shane Oliver takes a sober look at the long-term performance of shares versus cash and bonds - easy reading. Read here
28/10/11: The European Plan
Europe gets a financial plan
This New York Times article is a good summary of the EU deal announced in the last 24 hours. Read here