Your Portfolio

Why global equities?

By Magellan Group Australians have heavily tied their financial fates to Australian equities. Australian stocks have certainly proved to be good investments over the past two decades. The industrialisation of China boosted commodity prices, which has helped Australia’s economy expand continuously since the early 1990s. Our banks and mining stocks, in particular, thrived. But is…

Winning on US tech stocks using an Aussie broker

Although some will argue that money never comes easily, investing in some of the big-name US stocks of late has been as close as you could get to making “easy money”. Take Facebook, for instance. Had you invested $10,000 into the popular social media site in 2015, it would be worth around _ today. Similarly,…

The economics of ridiculously expensive art

What would possess someone to buy Leonardo da Vinci’s Salvator Mundi for US$450 million? You might think it’s an investment – after all it was previously sold for just US$10,000 in 2005. From an economic point of view, art can be an investment. Although the research shows art investing has mixed results. Art also has…

Being a successful investor

In 2008, John Bogle, founder of The Vanguard Group, said in a speech to a conference of Financial Planners: “Investing to me, is all about the long-term ownership of businesses, focussed on the gradual accretion in intrinsic value that is derived from the ability of our corporations to produce the goods and services that our…

10 Tips for Succesful investing

To be a successful investor over the long term, we believe it is critical to understand, and hopefully overcome, common human cognitive or psychological biases that often lead to poor decisions and investment mistakes. Cognitive biases are ‘hard wired’ and we are all liable to take shortcuts, oversimplify complex decisions and be overconfident in our…

The paradox of the bull

Would it surprise you to hear that we are now in the eighth year of a bull market in Australian shares? There’s always plenty of doom and gloom in the media about the current state of markets, but the All Industrials Accumulation Index is up over 3 times from its post-GFC hangover. That’s the good…

Three charts on: the great Australian wealth gap

It’s a tale of two Australias: older Australians are getting much wealthier, and the young are being left behind. It’s a story only too familiar to Australians under 45 who have struggled to save enough money to access the housing market in Australian cities. They are a generation for whom the great Australian dream of…

Do rising interest rates reduce returns on income investments?

Many will remember to their cost the infamous “taper tantrum” in June 2013. It was the moment Ben Bernanke, the then Chairman of the US Federal Reserve, indicated that the quantitative easing (QE) would be scaled back, or tapered. The QE programme had fed money into the financial system to stimulate the economy following the…

Show me the incentive, I’ll show you the outcome

“Show me the incentive and I’ll show you the outcome”.  Charlie Munger’s quip is typically insightful and relevant to many of the ructions currently facing the domestic economy and a number of the key sectors within it. Structuring incentives which engender desirable behaviour is often more complex than it appears, whilst misguided incentives almost always…

If the ‘bond market rout’ continues it could impact home prices

For the past three decades the yields on long-term bonds have been on a downward trend. This has dramatically reversed since the election of Donald Trump, with more than a trillion dollars wiped off the global bond market in the past week and a half. But it’s not just investors that are impacted by this…