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Super Problems
Read more: Super ProblemsFor the past few years there has been a battle raging. Certain superannuation funds have not been backward about coming forward about their performance. Their ‘balanced’ options are the headline generators. Take out top spot and it’s plenty of media attention. The fund’s chief investment officer can pose for flattering photos. Even better, they’ll be quoted on market direction and what they see as emerging investment themes. This attention will attract new investors. People switching their super to the winner. For some, the term ‘balanced’ is misleading. True defensive assets are fixed interest (bonds) and cash. Some superfunds have snuck…
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All That Glitters
Read more: All That Glitters“Have you seen the price of gold?” “What about gold?” “Is there a reason you don’t invest in gold? These are common but also intermittent questions. An investment that has recently increased in value will receive attention. Its proponents will talk about it. The media will cover it. People want to know more about it. This waxes and wanes. Middling performance isn’t so exciting. It doesn’t attract attention. People don’t want to know. Gold is up right now. People want to know. Unlike various other investments that emerge, we don’t dispute gold’s legitimate status as an asset or a commodity.…
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Hybrids – The Worst of Both Worlds
Read more: Hybrids – The Worst of Both WorldsYou might remember it. Though it seems so long ago right now. There was a big kerfuffle. It was about franking credit cash refunds. In short, former Labor leader Bill Shorten was going to do away with them. In response, Australia’s self-funded retirees made it their mission to do away with Bill Shorten. Retirees: 1. Bill Shorten: 0. Less than a year on. There has been fire. There has been pandemic. Bill Shorten might be feeling better about losing that election. What about those retirees? Highly doubtful they want Mr Shorten back, but he did present them with an opportunity.…
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Don’t Fall for It – A Short History of Financial Scams
Read more: Don’t Fall for It – A Short History of Financial ScamsReleased back in January was an interesting new book by Ben Carlson. Carlson is a portfolio manager at Ritholtz Wealth Management in the US and also runs the popular financial blog, A Wealth of Common Sense. The book itself is a handy primer on scams. What are scams really? Psychological manipulations of our weaknesses and vulnerabilities. Losing your hair? Can’t lose weight? Unable to conceive a baby? Need a financial fix? There’s always an unknown cure for whatever ails us. Someone’s always available selling something almost too good to be true. The victims span the average person to Hollywood and…
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A Message On Recent Market Falls
Read more: A Message On Recent Market FallsWhen the market falls 7% in a day… There’s no sugar coating it. It’s very painful. What now? We’ve been through this many times before. Our experience tells us to do nothing. With every previous market fall there has been a recovery. Every financial adviser has a story. It’s the person who panicked. There was an event. There was a large market reaction and a client demanded to exit their portfolio and sit in cash. These clients never get back in. They sit in cash as the market recovers. Then it pushes higher. Too proud, they refuse to reenter. Often…
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