Getting Started

The Best Way To Protect Your Portfolio From Losses

Since the GFC there’s been a lot of talk about ways to protect investment portfolios from the types of falls experienced in late 2008. There are two ways to overcome this risk: portfolio diversification or portfolio insurance (or hedging). We’ve compared the two in this article. Portfolio diversification involves the practice of combining investments with…

National economy grows but some non-mining states in recession

By Sunanda Creagh, The Conversation The Australian economy grew 0.6% last quarter but Victoria, South Australia, Tasmania and the ACT are now technically in recession, according to new Australian Bureau of Statistics data. The new figures illustrate the extent to which the mining states like Western Australia and the Northern Territory are racing ahead while…

Explainer: what are safe haven investments?

By Richard Heaney, University of Western Australia Safe haven investments are investments that provide a low level of risk during periods of extreme economic uncertainty. The problem is that a safe haven investment is a safe haven investment until it is no longer a safe haven investment. There are a number of assets that are…

A high income does not imply high wealth

By Wealth Foundations In the past we have examined the progress toward financial independence being made by the wealthiest 20% of Australian households, with wealth measured alternatively by household net worth and household gross income. We found that the net worth measure of wealth was a better indicator of current financial independence than was household…

Do I pay capital gains tax on inherited Aussie stocks if I live overseas?

Question: I am an Australian citizen who has lived overseas for a number of years. I have recently inherited a number of Australian shares from my father’s estate. (Nothing has gone through yet) I am told that I am required to pay CGT to the Australian Government, being an overseas resident. If so, how much…

Test for Alvin

The mining boom is behind a top performing materials sector. According to Standard & Poor’s, the materials sector has delivered an annualised return of 10.99 per cent for the 12 months to March 31, 2011 compared with a negative annualised return of .77 per cent for the S&P/ASX 200. Over five years, the materials sector…

How to set up a watchlist

What progress have watchlists made! From the yellow pad and end-of-day newspaper quotes to instantaneous online watchlists that transverse a multitude of search criteria: sectors, market capitalisation, growth, moving averages or trading volume. All this could be at your fingertips, for free, in just few seconds. For decades, stocks have been the most popular investment…

Get Started Investing Today – But How?

Once upon a time, legendary investor Baron Rothschild was asked the secret of his success; to which he supposedly replied: “I never buy at the bottom and I always sell too soon.” Whether he actually said that or not, the comment speaks to the need to make use of a strategy to guide investing decisions. …