Jun 14
The common criticism of market-cap weighted bond indices is that they are inefficient because they are obviously weighted towards those with the most debt. Thus indicating that the index potentially carries more risk than necessary, or than we may want in a portfolio, because those with the most debt carry greater default risk than those with very …
May 09
It appears that the financial planning industry is a big believer in rebalancing but a little unsure as to how often. Some accept the automatic quarterly option, some rebalance at the client review, some annual, or even at 13 months to potentially reduce capital gains tax by taking advantage of the 50% CGT discount. Because the …
May 05
Given the start of MySuper this year, superannuation trustees have released numerous lifecycle funds to satisfy this new legislation. Whilst lifecycle funds have been popular among superannuation trustees, the investment and adviser community haven’t been so complimentary. Either way, lifecycle funds definitely have a place in the investment landscape and they provide an approach to …
Apr 24
Absolute return investing, according to many definitions, is about getting positive returns irrespective of the overlying “market” return of whatever asset class the investor is being exposed to. This essentially means that any “absolute” returning investment needs to employ strategies that are independent of market direction. For example, if the market (and it can be …
Jan 14
I know this is possibly a little old now but one of my recent favourite articles is about to be published in the Financial Analysts Journal, My Top 10 Peeves, by Cliff Asness of AQR. Just click the article name to open and read for yourself. There are quite a few gems in there but …
Jan 13
Source: RBA & Delta Research & Advisory Its definitely been a long time since I posted anything and hopefully this post will at least be a little interesting…I haven’t read a great deal of anything financial over the past few weeks so I apologise if this is old news….but I digress!! Now, the above chart …
May 31
Source: RBA, Delta Research & Advisory Not too many posts in recent times and its been a while since I looked at the yield curve and I have to admit that after scanning the various newspapers I was expecting to see some significant moves. As the above chart shows, the curve has barely moved in …
May 14
The Rimsec Monthly Research report came out today which has commentary on current investment market themes, interest rate thoughts and some information on one of the significant risks within China…their property bubble. Anyway, if it is of interest you can download it by clicking here. Send article as PDF
Feb 11
Source: www.incrediblecharts.com As the above chart shows the Australian Sharemarket has had a stellar run over the last 3 months. Not a hint of volatility just upwards she goes from around 4350 to just short of 5000…throw in a very small number of dividends and its a superb return. Newspaper talk has suggested that there is a …
Feb 06
Source: RBA The RBA released its chart pack today and there are few charts I always like to look and in recent months its been the above, Forecast Earnings per Share. Its very difficult to see but the update to this chart shows a tiny movement sideways…so…its the first time for quite a few months …