Your Portfolio

Do current interest rates justify chasing yield?

By Wealth Foundations With bank term deposit and other short term interest rates at historically low levels, many of those who rely on fixed interest to fund their lifestyles (retirees, in particular) feel under increasing pressure to examine higher yield alternatives. These usually come with significant additional, and often underappreciated, risk. Investment decisions should not…

Still too much risk chasing cyclical growth stocks

Many have been sceptical of the so-called “yield trade” over the past three years. Strong gains in interest-rate-sensitive securities such as banks, utilities and listed property suggested it was time to take profits and chase cyclical growth stocks. The Australian sharemarket’s recent bounce from its September low has some commentators recommending investors switch to growth-sensitive…

Significant wealth rarer than marketers would have us believe

By Wealth Foundations The Australian Bureau of Statistics recently released its bi-annual survey of Australian household income and wealth for 2013-14. In January 2012, we used the results of the 2009-2010 survey to look at the financial health of Australians in two articles, “Household income and wealth in Australia” and “A high income does not…

How the small business write-off can make you worse off

The $20,000 immediate assets write-off for small business has been widely welcomed. However, our modelling shows some small unincorporated businesses could actually be worse off under this measure. Most unincorporated businesses (that is, individuals, trusts and partnerships) are taxed on the basis of the marginal tax scale for individuals. That is, the more that is…

China’s Stock-Bubble Burst

China’s stock bubble has burst, with its stock markets utterly collapsing after rocketing parabolic.  The failure of this popular speculative mania has grave implications for the global stock markets.  It shatters the universally-believed myth that central banks can nullify normal market cycles.  No government has more power over its stock markets than China’s, yet not…

What is your future capital? A guide to risk taking

By Wealth Foundations When it comes to personal finance, as in most areas of our lives, we often rely on some fairly simple notions to make some very significant decisions e.g     “As a 40 year old, the bank is willing to lend and I’m comfortable borrowing five times our household income to purchase a…

Consumed: why more stuff does not mean more happiness

Judith Stark, Seton Hall University Consumption. By a strange shift of meaning, this 19th-century word describing a serious and often fatal disease is the same word used now for a way of life focused on material goods. Is it time to bring back its negative, and often deadly, associations into our public discourse? Consumption as…

Priceless: the inefficient, but merry economics of Christmas

By Kevin Albertson, Manchester Metropolitan University Fingers crossed, we are soon to be inundated with Christmas joy disguised as presents from our family and friends. I received my first card more than a week ago and a present – now sitting under the tree – from our eldest, wee Jimmy (now not so wee and…

5 Entertainment Stocks Hitting 52 Week Highs

Whether the share market investing climate is bullish, uncertain, or bearish, Rolling 52 Week High Lists are a valuable tool for investors looking for stocks with growth potential. On occasion, one finds a cluster of stocks from the same sector appearing in these lists.  Looking back a few weeks at stocks reaching 52 Week Highs…

The shape of your financial future

By Wealth Foundations Let’s compare the situation of two (fictitious) couples, the Blacks and the Whites, who are both successful young professionals and 27 years away from their nominated retirements. While retirement seems a long way off, the  framework reveals that financial decisions made at this stage of life can significantly limit future financial flexibility…