Australians should be creating a comprehensive financial plan to live within their means. It may turn out badly unless we teach skills at an early age and incorporate financial planning into our education system.
Both The Economist and The Financial Times have recently run articles on ‘smart beta’, suggesting it is time for all pension trustees to consider the merits of this alternative to traditional indexing and active funds.
If you’re not prepared to select a manager and hang in there for at least three years and preferably five, index and save yourself some fees. You should expect underperformance at some time in the investment cycle.
Price is what you pay for something, but value is what you will receive and the value will ultimately determine your return. Your job as an investor then, is to own shares that are worth more than you paid for them.
While it would be preferable if disengaged investors became more aware of their superannuation, it is an unrealistic expectation. A degree of paternalism is necessary in the design of defaults.
Simple maths helps explain why the share market is so volatile. It’s not that it’s an irrational, casino-like beast that bucks and dives for no good reason. It’s a long duration market reacting to changes.
Economists are searching for reasons why the United States economy is growing slowly, and ‘financialization’, the growth of the financial sector as a share of GDP, is under scrutiny (extract from The New York Times).
When a fund is open to the public, there is a dilution of the influence of those who were ‘looking after’ their members – unions and employers. Super funds may need to better balance leadership and consensus management styles.
Falling gold prices this year have scared off many gold investors, and traditional financial asset buyers are unlikely to return in time for a rally.
Revolution in the application of technology to the delivery of financial advice, in all its different forms, is critical if the issues around quality and access are to be meaningfully addressed.
Fascinating though the current events on government deficits are, they are hardly new. Not much changes – even across thousands of years, and it’s worth a quick history lesson.
Only one in 10 bank customers has their personal super with their bank, showing that banks are missing a significant cross-selling opportunity. This is an extract from a debate in a LinkedIn superannuation group.
There is a huge amount individuals can learn from the example of top sports teams. Here are 5 business lessons learnt from sporting success.
The widely-held belief that good economic growth should be good for share prices, and low economic growth bad for them, is often demonstrated to work in reverse.
Click 'Next' to go to hundreds of archived articles on investing.