121 results found

Global economies and central banks are changing gear. Should you be switching gear with your portfolios? To answer, you need a laser focus on what is important for you.

Tim Farrelly | 0.25 CE

It is the time of the year when those in the forecasting business like to lay out our expectations for the coming year. Here are mine...

"If it is earned here, it should be taxed here" is the title of the ad about laws on multinationals transferring profits offshore. What is interesting is the closing claim in the ad.

The 2017 mid-year SPIVA report on fund manager performance came out recently. And, while we can expect to see the media dwell on the negatives, there are some big positives in the data.

Despite all the talk, the fact that Australian banks loan books are heavily concentrated in low risk residential mortgages should be a source of comfort, not fear.

Simply observing the concentration inherent in the index and reducing Australian Equity weights is throwing the proverbial baby out with the bathwater. It’s nuts and you can clearly see it’s nuts.

Where can practitioners take on the world’s best investors and win? Actually, in quite a lot of places.

In a world where 0.6%pa is top quartile, winning is difficult and losing is easy. There are big gains to be made in surprising places. Even 1%pa adds up to a huge difference over time.

Tim Farrelly | 0.50 CE

The head of ASIC says that hybrids are a ridiculous investment for retail investors. Are they? Yes and no.

Yes, rates are unusually low. But to describe that as unnatural shows a lack of understanding about how the world works and a refusal to accept that maybe the world has changed.

After the ratings failures of CDOs and other complex instruments in the GFC, many dismiss the work of the ratings agencies. But far from being hopeless, they do a wonderful job of assessing companies.

The market is expecting a big pick-up in earnings from Trump's business friendly tax cuts, deregulation and an infrastructure spending boom. But will it be enough?

A more realistic view of the world is that price appreciation drives negative gearing - not the other way around. Abolish negative gearing and nothing much happens.

A recent, widely circulated article suggested the major Australian banks are overpriced. But including the effect of imputation and a view on interest rates makes a huge difference...

A formal, written spending policy can help investors focus on what's really important - will they meet their goals?

Tim Farrelly | 0.25 CE

When positioning a multi-asset, portfolio for the medium-term, there are four fundamental decisions we must make now. They are, in some cases, interdependent.

Tim Farrelly | 0.25 CE

Another major licensee has reportedly fallen for the hybrid scare campaigns, insisting bank hybrids securities be treated as equities. The premise is hopelessly flawed.

The Australian sharemarket’s high weight to resource stocks is an accident of history and geography. A lower than market cap weight to resource stocks in portfolios seems much more sensible.

The latest reason offered as to why not to buy Australia's major banks is that their margins could be taken away by a well resourced disrupter. Should we not own the banks, as a result?

Australian banks face a number of headwinds - they are real, but could better be described as zephyrs. The market has overreacted. Buy the banks.

Tim Farrelly | 0.50 CE