Your Wealth

Diversification - are you doing it right?

Most investors understand the principle that diversification reduces risk and potentially improves returns in a well-constructed investment portfolio. Yet when the whole of Asia ex-Japan represents approximately 2% of the MSCI World Index (according to MSCI data as at June 2018), are they really getting access to the opportunities they’re looking for?

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The case for small and mid-cap companies for growth

Small and mid-cap companies are often overlooked by investors, as the information available to assist with investment decisions, can often be harder to find when compared with those companies in the ASX top 50.

 Yet many small and mid-cap stocks offer long-term growth opportunities that may exceed the mature investments that dominate investor portfolios.

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Tariffs, Tapering and Tax Cuts – Investing in Interesting Times

US markets have rallied strongly in recent years, shrugging off concerns about over-valuation and stretched fundamentals. The US economy is showing strong signs of growth also, buoyed by a decade-long period of low interest rates, huge tax cuts and Trump’s protectionist policy announcements. So are all lights turning green? Or will tapering and tariffs present headwinds that clash with tailwinds from Republican fiscal policy?

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Top stocks for FY19 with Paul Rickard

Investors have generally been rewarded for holding – and sticking with – growth stocks throughout FY18, with the ASX delivering another year of strong portfolio returns. Many valuations look stretched, however, and headwinds are facing many popular stocks and sectors.

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What did you do during the GFC? Warning signs and lessons for investors

The collapse of Lehman Brothers in 2008 is often seen as the catalyst for the Global Financial Crisis, which wiped trillions of dollars from global markets and shook confidence in financial systems across the world.

According to veteran investor and commentator Graham Hand, the GFC actually started a year earlier in the global credit markets, but the equity markets ignored it. With hindsight, everyone had the chance to exit shares at elevated prices with plenty of notice, as the credit markets were screaming for all to see, in every part of the world.

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Borrowing to Invest 101

End of financial year is a common time for people to think about gearing – the potential deductibility of a year’s worth of interest cost can reduce your tax while borrowing to invest can boost your returns. This strategy is not without risk, however, and understanding the implications of both the strategy and the structures you use is critical.

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Pre 30 June Strategies to Boost Your Wealth

The end of the financial year offers an ideal opportunity to review your financial position, and to take advantage of tax concessions and strategies that are offered to help you grow and protect your wealth. This year offers significant new benefits for many investors, as well as pitfalls to avoid, so the time to prepare is now.

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The Impacts of Rising Bond Yields

With a decade of record-low interest rates, retail investors have previously steered away from the bond market and have focused their capital on equity markets. Now that the Federal Reserve has announced a rise in rates, should we be worried? Considering the current level of global household debt, a small rise in rates could have a dramatic impact on the Australian and global economies. 

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Buy, Sell and Hold with Morningstar’s Adam Fleck

A great company in a great market doesn’t always present a great investment opportunity; the value of a stock is often determined by how much you pay for it. As Morningstar’s equity expert Adam Fleck explains, valuations can vary dramatically with sentiment, market movements and changes in sector and company fundamentals.

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How to Help Your Kids own their First Home

With capital city house prices having doubled in the last five years, many parents despair of their children ever being able to afford their first home, and wonder if they should be reaching into their own pockets to help. According to Digital Finance Analytics, the ‘Bank of Mum and Dad’ is providing up to $85,000 each to nearly 56% of first home buyers, and most of those buyers are already in their thirties¹.

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