Cash gives options over future lower prices, and it avoids the risk of permanent capital loss. But it comes with another risk, the loss of purchasing power, and is not a good long-term investment.
Successes and failures have been spread evenly across the current IPO cycle, so what should investors look for? There are special situations in new floats which improve the chances of finding a winner.
There is always market uncertainty, but the economic outlook is broadly set and investors should focus more on companies delivering solid returns over the next few years almost regardless of market conditions.
Almost every hybrid has a unique structure, and some of the conversion terms, especially following a ‘loss absorption’ event, are as ugly as a cane toad. Billions have been issued recently as investors search for income.
The Australian economy is changing, with new jobs in services, retail and health replacing the lost jobs in manufacturing. These trends are important for investors to find the successful companies of the future.
Estimates of the cost savings from abolishing negative gearing are overstated because the property becomes positively geared and incurs capital gains tax on sale, and allowing it on new homes only is dangerous.
Articles from previous editions
One consequence of the proposed super changes might be that keeping money in super is no longer the best option, especially due to new anti-detriment rules. There are many unexpected consequences now surfacing.
Continuing our series on EOFY strategies, there are many things SMSF trustees should check immediately, with updated comments where relevant on the implications of the budget proposals.
Roboadvice will increase the size of the advice market and bring vital tools to financial advisers, and while face-to-face advice will always have a role, some rationalisation will occur within the industry.
A discussion about the leadership attributes needed to move the superannuation industry from its historical focus on accumulation to that of a whole-of-life approach with an emphasis on retirement outcomes.
Online brokers have traditionally been more consumer-focussed than their institutional competitors, but developments in fintech are forcing them to adapt and embrace innovation to stay on top of what consumers want.
Chris Cuffe on gratitude, growing a business, the value of culture and the need for time and patience in investing – he says “Slow money is better than quick money.”
Deciding whether managed funds or listed investment companies go better within super or out of it comes down to an investor’s own preferences and situation. This comparison will help explain the differences.
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