Small caps set to sail out of doldrums
Signs are emerging that Australia’s quiet small companies sector is about to roar back to life. The large cap market broke out of the bear cycle about 12 months ago but the small caps have been left behind.
The dove has landed: Janet Yellen for the US Fed
The nomination of Janet Yellen to be the first woman to lead the United States Federal Reserve will increase the chances of the Fed prolonging its unprecedented $US3.5 trillion stimulus that has propped up sharemarkets around the world.
House buyers follow the sun
Queensland’s housing market is showing real signs of improvement with one of the worst markets – the Sunshine Coast – bouncing back with higher sales.
National rents prices stagnate
While house prices have soared during the past 12 months, the national rental market is moving at a much slower pace, according to Australian Property Monitors.
Academic urges higher super weighting to property
David Higgins said the importance of diversifying into property investment was being recognised by some fund managers.
NAB’s Clyne urges caution on cutting interest rates
National Australia Bank chief Cameron Clyne has told home owners not to worry about a collapse in house prices, soothing fears of a property bubble fuelled by record low interest rates.
ANZ chief Mike Smith tells RBA to hold off cutting rates
ANZ Banking Group chief Mike Smith has cautioned the RBA against any further official interest rate cuts, as the debate rages about whether Australia’s record low borrowing costs will fuel a house price bubble.
Construction sector on the mend as new orders rise
Australian construction rose to its highest level in almost three and a half years in September, as house and apartment building expanded in a sign the sector is stabilising.
ASX book-build service an ‘evolution’
Ben Bucknell describes it as a natural evolution for the sharemarket, but for some investors, it may be more of a revolution.
Inflation-linked bonds on the menu as investors guard against inflation
As analysts ponder when the Fed will start its taper, a leading fixed income manager argues that what month the policy change occurs does not matter as the long term inflationary effects are inevitable.
US debt default would dwarf Lehman
Fears grow that a failure by the world’s largest borrower to pay its debt will devastate sharemarkets around the world.
Super tax threat puts splitting back on agenda
The prospect of super funds paying tax could resurface after changes in 2007 made it a non-issue for retirees. Commentators believe it is a possibility, with the Coalition government giving no indication of rescinding a proposed Labor tax on the investment earnings of funds in pension mode.
The pros and cons of segregating assets in DIY funds
With a growing proportion of do-it-yourself super funds taking pensions, one issue that can become important for trustees is how to deal with situations where contributions become a minor part of the fund’s activities.
Keep tabs on super’s tax-free components
A superannuation expert says failing to monitor tax-free super components could result in costly mistakes that affect those who inherit the death benefits.
Superannuation
Why DIY super is not for everyone
Self-managed super funds are popular but those with less to invest or who are less financially savvy, may be better off using a cheaper and safer superannuation option.
Stick to the fundamentals in DIY super investment
Most advisers agree it’s a healthy strategy for serious personal investors like trustees of do-it-yourself superannuation funds to review their investment portfolio after big events such as the twice-yearly company reporting season.
Investing
Doctor’s slide has investors worried
The copper price, which is a good predictor of global economic trends, edged lower this week, on the back of weaker Chinese demand and the US’s decision not to taper its bond-buying program.
Trading on volatility becomes a profitable niche
Holed up in a spartan shoe box of an office in Sydney’s Bligh Street, Triple 3 Partners’ Simon Ho, the 41-year-old Australian son of Chinese and Ukranian parents, and the three PhDs who work for him, are a rare example of the new class of volatility traders.
Property
Why residential property investors should hold tight
Interest rates are at record lows, rental demands are high, stock levels are low and agents are hungry for listings. It is little wonder that residential property investors are considering whether it is time to shake things up a bit.
New retirement village contracts will benefit buyers
All those buying into a retirement village in NSW after October 1 – and all their relatives and advisers – face new contracts and new inquiry documents that better protect the rights of residents.
Budgeting
Let your heart be the guide in rug affairs
As a $US30 million sale testifies, there can be huge value to be found in rugs – but knowing what makes great quality takes some research.
How to reinvent a business after a partner’s death
Anna Dimond started Palas jewellery with her sister Eran but dramatically reinvented the business following her sibling’s sudden death in 2007.
