Higher bond yields are making fixed income fundamentally more attractive than it was during years of ultra-low interest rates. AMP’s Diana Mousina and Chris Baker recently discussed the opportunity set as investors look to add income and defensiveness in a new paradigm.
Saying the plan to double the tax rate on super balance amounts exceeding $3 million will improve the sustainability of Australia’s retirement system, the peak industry body nonetheless called for careful retooling of aspects that it says could lead to inequity.
Repeating his warning that markets are undergoing a “sea change” that will see a new set of winners and losers emerge in short order, the famed distressed-debt investor said it’s time to consider a profound shift from asset ownership to lending and credit.
Morningstar head of equity research Peter Warnes recently laid out a bleak take on the chances of a recession, along with simple rules for investors to follow in the coming economic and market confusion. Simplicity and risk control will be key, as will harnessing sustainable tailwinds.
The government’s plan to increase taxes on super balances above $3 million will have a costly impact on the SMSF sector, with thousands of members likely to face liquidity stress, according to new research from the University of Adelaide’s International Centre for Financial Services.
Australian retail investors are trading less since the height of the pandemic, as uncertainty over the direction of markets prompts them to accumulate cash. But while even the pros may be tended to blink, the overwhelmingly buy-and-hold retail cohort is proving its savvy, says nabtrade’s Gemma Dale.
The rise of AI is part of a global knowledge revolution that is reshaping every aspect of our lives, according to AI thought leaders at the Australian Investor Association’s recent investX conference. While it’s new territory, the same investment principles should apply in picking the winners from the losers.
Most Australian financial professionals are now using smart beta ETFs and other passive investments in their clients’ portfolios, a new VanEck survey shows, continuing a three-year trend away from active management approaches.
The government’s plan to include unrealised capital gains in earnings calculations when it doubles the tax rate for super balances above $3 million is “flawed policy”, according to the SMSF Association. It says there’s an easy fix.
Whether an investment is expensive or cheap is a key and often overlooked driver of future returns, explains AMP’s Shane Oliver. At the moment, starting points signal a brighter medium-term outlook for some asset classes than for others.
