On the Money

Talk about an index fund bubble is very passive-aggressive

If you’ve seen the movie The Big Short you will remember Christian Bale’s quirky character Michael Burry – the manager of the Scion Capital hedge fund who realises the US mortgage-backed security market is a massive bubble. He goes on…

Why now is the right time for value

The past two years have seen poor performance for value style indices and typical value managers globally, and stronger performance for momentum, growth and quality factors. There have been recent comments in the market that value is broken or that…

CIPR is an opportunity not a chore

Superannuation funds need to get on the front foot and respond to the strategic challenge of developing good retirement solutions now. Although superannuation funds can follow the Government’s legislative timetable to develop a Comprehensive Income Product for Retirement (CIPR) by…

The end of shareholder capitalism

Capitalism’s days may be numbered – at least judging by recent polls. A majority of millennials reject the economic system, while 55 per cent of women aged 18 to 54 say they prefer socialism. More Democrats now have a positive…

Developing a Trumptweet investment strategy

On August 1, President Trump sent four tweets about China. With tweet three, which talked about additional tariffs on US$300 billion of goods exported from China to the US, Trump rocked markets by publicly escalating trade war rhetoric. Traditional conventions—whether…

Proceed with caution in emerging markets

Investing in emerging markets is a bit like making a soufflé: it’s a courageous undertaking fraught with the risk of things not working out as hoped. EM economies may be buffeted by political strife, currency crises, and other upheavals, leaving investors a…

Will business and consumer confidence converge?

Global consumer and business confidence have diverged, a trend that started in 2018. It is otherwise pretty rare, only occurring two other times over the last 30-plus years. These two sentiment factors previously diverged in the periods after the East…

Equity income opportunities in focus

The global Purchasing Managers’ Index (PMI) has been in decline since 2017. Combined with the heightened risk of a prolonged US-China trade war; this has caused global interest rates to decline and for the US Federal Reserve to halt any…

There is a problem with retirement incomes but it isn’t the super guarantee

There is a case for not proceeding with, or at least further deferring, the legislated increase in employers’ compulsory superannuation contributions from 9.5 per cent to 12 per cent. But the Grattan Institute’s latest analysis, published in The Conversation and…

Home ownership is no longer a one-way street

More than in many countries, in Australia home ownership has traditionally been seen as a journey, with most of us aspiring to own a home and pay down a mortgage by the time we retire. Because it’s been seen as…