121 results found

How long is it since Australia had a recession? Most would say 26 years. A world record. By looking at the data a little differently, we may not be so sure that Australia has gone 26 years without a hiccup.

QE has caused massive investment distortions. Ditto the ZIRP and NIRP policies of many central banks. Beware - the chickens are coming home to roost! It seems plausible, but...

Setting an appropriate spending level is one of the most crucial tasks for retirees. Spend too much and risk utter penury down the track. Be too conservative and the client spends their remaining years in unnecessary hardship.

Tim Farrelly | 0.50 CE

One of the most important decisions facing retirees is working out how much can be “safely” spent without the risk of exhausting capital. This session reviewed the different approaches to create a formal, written spending policy.

Tim Farrelly | 3 comments | 0.75 CE

While record low interest rates worldwide (negative in many countries) mean low returns on government bonds, it doesn't necessarily mean low returns across the board. This is not a time to be fearful.

Tim Farrelly | 0.50 CE

We're often told that the answer to managing sequencing risk lies in locking into low volatility, low return strategies. It’s nuts and you can clearly see it’s nuts!

Often in markets, you do get the feeling that somehow we've been here before. But things are never quite the same. Looking at some examples from the past, particularly Japan, we can see what can we learn and apply to our investment decisions going forward.

For a number of years, many fund managers have maintained that country and regional analysis are no basis for making asset allocation decisions. It's nuts and you can clearly see it's nuts.

The FSC has called for a cut in the company tax rate to 22%, funded by an increase in the GST. It's hard to see why FSC made this call, particularly given that its stated number one priority is "working to improve the well-being of all Australians".

With interest rates at record lows, it is a really good time to revisit how we build debt portfolios. A three box approach can really help in making and communicating investment decisions for the secure part of their portfolio in the new, low interest rate environment.

Tim Farrelly | 2 comments | 0.50 CE

The Australian residential property market is stretched. But about to crash, triggering a recession? It's nuts and you can clearly see it's nuts.

Having a clear investment philosophy based on our own belief set - a living document that we evolve and sharpen over time - is the best tool to making investment decisions under uncertainty.

Tim Farrelly | 0.50 CE

We hear this one a lot. It's incredibly misleading. Bank hybrids offer better than bond returns with higher risk, and lower than equity returns with much lower than equity risk.

If you have a DIMS license, you are required to stress test portfolios. Here are two practical approaches to stress testing, and the strengths and weaknesses of each to help you build your approach to portfolio stress testing.

Tim Farrelly | 0.75 CE

What return premia - if any - are attached to different types of investment risk? And just how reliable are those premia are in practice? Can the risks be diversified?

Tim Farrelly | 0.50 CE

World-wide low interest rates are not a temporary phenomenon. The world has changed and it is highly likely that the current low rate environment will be with us for decades. Getting used to low rates will be a critical adjustment for all investors to make in the coming years.

Tim Farrelly | 0.50 CE

Low GDP growth, very low real rates, higher PEs and valuation multiples - it's a new world. We all need to get used to it. In particular, we should review client spending plans.

When faced with a huge majority of experts expecting international equities to outperform Australian equities, I blurted this out. I was wrong, and on a few counts.

Are Term Deposits the most boring subject in finance? Actually, they're anything but. The Australian TD market is an area where it is easy to add demonstrable value for clients.

What return premia - if any - are attached to different types of investment risk? And just how reliable those premia are in practice? Can the risks be diversified?