The US Fed raises rates

The US Fed Increases rates again in 2018

https://edition.cnn.com/2018/12/19/business/federal-reserve-december-rate-hike/index.html

APRA to remove banks' interest-only lending restrictions

APRA to remove banks' interest-only lending restrictions

https://www.abc.net.au/news/2018-12-19/apra-to-remove-interest-only-benchmark-for-residential-mortgage/10633748

Contrarian Evidence Piling Up

Stock Market - Contrarian Evidence Piling Up

https://www.businessinsider.com.au/stock-market-crash-contrarian-evidence-piling-up-2018-12

Australian Budget Surplus forecast for next year

Australian Budget Surplus forecast for next year

https://www.abc.net.au/news/2018-12-17/josh-frydenberg-forecasts-federal-budget-surplus-next-year/10625838

Population Growth and the Economy

Population Growth and the Economy


https://www.abc.net.au/news/2018-12-14/population-growth-and-economic-growth-intertwined/10615352?section=business

Outlook for Australian Equities

Interesting to see the diverse opinion of equity managers on the outlook for Australia Equities

https://www.smh.com.au/business/markets/stick-with-aussie-stocks-or-ditch-them-investors-can-t-agree-20181213-p50lx6.html

Australian Space Agency HQ will be in Adelaide

Australian Space Agency HQ will be in Adelaide

https://www.businessinsider.com.au/australian-space-agency-adelaide-headquarters-2018-12

Credit Crackdown is affecting the property market

Credit Crackdown is affecting the property market

https://www.abc.net.au/news/2018-12-11/credit-crackdown-putting-heat-on-apartment-buyers-and-developers/10586582?section=business

APRA acts against IOOF executives

APRA acts against IOOF executives

https://investmentmagazine.com.au/2018/12/apra-tries-to-ban-ioof-top-brass/

Potential Impact of Huawei CFO Arrest

Potential Impact of Huawei CFO Arrest

https://edition.cnn.com/2018/12/06/business/huawei-us-china-trade-war/index.html

Why you would have not invested with Warren Buffett

Why you would have not invested with Warren Buffett

https://behavioralvalueinvestor.com/blog/2018/11/26/why-you-would-not-have-invested-with-warren-buffett

Global Investor Study

Global Investor Study

https://www.schroders.com/en/insights/global-investor-study/investors-forecast-returns-of-9.9--millennials-expect-more/

Retirement won't wait

Retirement won't wait.

https://www.ricewarner.com/retirement-wont-wait/?utm_source=Email+Campaign&utm_medium=email&utm_campaign=42575-54738-Insight_Retirement+won%E2%80%99t+wait_4.12.18

Neuroscience

Neuroscience

https://qz.com/1476175/whats-it-like-to-be-a-dog-brain-scans-reveal-the-answers/

Sydney Light Rail

Sydney Light Rail

https://www.theguardian.com/australia-news/2018/nov/29/nsw-government-dropped-a-bomb-on-us-sydney-light-rail-contractor-says

The Transport Freebie

The Transport Freebie

https://www.schroders.com/en/uk/private-investor/insights/markets/the-transport-freebie-the-benefit-of-land-ownership-next-to-mass-transit/

Potential Negative Gearing Changes

Potential Negative Gearing Changes

https://www.investordaily.com.au/regulation/44055-tax-experts-respond-to-negative-gearing-proposal

Investing in Cash is the Worst Thing to Do

Investing in Cash is the Worst Thing to Do

https://www.cnbc.com/2018/11/13/bridgewaters-ray-dalio-saving-in-cash-is-the-worst-thing-you-can-do.html

ASIC

ASIC at the Royal Commission

https://www.abc.net.au/news/2018-11-26/asic-should-the-watchdog-be-put-down/10553206?section=business

https://www.investordaily.com.au/markets/44035-asic-strongest-message-to-banks-was-a-press-release

The "Macquarie Model" at the Royal Commission

The "Macquarie Model" at the Royal Commission

https://www.smh.com.au/business/banking-and-finance/macquarie-s-model-struts-its-stuff-on-royal-commission-catwalk-20181122-p50ho5.html

Volatility is Normal

Volatility is Normal

https://www.aberdeenstandard.com/en/australia/investor/insights-thinking-aloud/article-page/fear-not-volatility-is-normal

Oil Prices at 13 month low

Oil Prices at 13 month low

https://edition.cnn.com/2018/11/20/business/oil-prices-plunge/index.html

CBA at the Royal Commission

CBA at the Royal Commission

https://www.morningstar.com.au/stocks/article/cba-admits-it-failed-to-prevent-misconduct/171964

The Enemy of Successful Investing

The Enemy of Successful Investing

https://www.afr.com/markets/equity-markets/rob-arnott-on-the-enemy-of-successful-investing-20181118-h180y3

No bargain in the absence of fear.

No bargain in the absence of fear.

https://www.investordaily.com.au/markets/43993-no-bargain-in-absence-of-fear

Goldman Sachs and the Malaysian Sovereign Wealth Fund

Goldman Sachs and the Malaysian Sovereign Wealth Fund

https://edition.cnn.com/2018/11/15/business/goldman-sachs-1mdb-scandal/index.html

My devices are sending and receiving data every two seconds

My devices are sending and receiving data every two seconds

https://www.abc.net.au/news/2018-11-16/datalife-i-spied-on-my-phone-and-here-is-what-i-found/10496450

Pitt Street Retail Rents

Pitt Street Retail Rents are in the 10 most expensive in the world.

https://www.smh.com.au/business/companies/pitt-street-trumps-rodeo-drive-in-top-10-priciest-retail-strips-20181113-p50fti.html

Stamp Duty vs Land Tax

Stamp Duty vs Land Tax

https://www.abc.net.au/news/2018-11-14/the-bad-economics-behind-swapping-stamp-duty-for-land-tax/10495096

Using Super to Fund Infrastructure

Using Super to Fund Infrastructure

https://www.abc.net.au/news/2018-11-13/would-you-like-your-super-to-build-roads-and-housing/10490380

Why debt will be the cause of the next stock market jolt

Why debt will be the cause of the next stock market jolt

https://www.abc.net.au/news/2018-11-12/why-debt-will-be-the-cause-of-the-next-stock-market-jolt/10486554

Richest People in the World

This article summaries the Credit Swiss Global Wealth Report 2018

https://www.businessinsider.com.au/richest-countries-in-the-world-2018-10

https://www.credit-suisse.com/corporate/en/articles/news-and-expertise/global-wealth-report-2018-us-and-china-in-the-lead-201810.html

The Coolest Cars

The Coolest Cars

https://www.businessinsider.com.au/coolest-cars-from-each-year-2018-9

Not Learning from History is a Hazard to Wealth

This article outlines some different historical fads in the investment landscape, but what remains the same is valuation and the price paid for an investment.

https://behavioralvalueinvestor.com/blog/2018/10/31/not-learning-from-investing-history-can-be-hazardous-to-your-wealth

House Prices Still Rising ?

This article highlights the disparity between property markets in Australia.

https://www.abc.net.au/news/2018-11-06/property-boom-far-from-over-say-investors/10468586?section=business

Royal Commission - Interim Report

Summary of main themes in the Royal Commission Interim Report

http://aicd.companydirectors.com.au/membership/company-director-magazine/2018-back-editions/november/royal-commission-book-of-revelations

Retirees at Risk

Labor's proposal to change dividend imputation to affect Self Funded Retirees

https://www.smh.com.au/politics/federal/all-that-is-now-at-risk-retirees-vent-their-anger-in-super-inquiry-20181101-p50ddr.html

Solar Power

This article highlights the issues that Solar Power on homes is causing the power network.

https://www.abc.net.au/news/2018-10-26/victorias-renewable-energy-boom-could-burn-electricity-market/10405210?section=business

Are Shares Expensive ?

Given the continued volatility in share markets, an obvious question is:- Are shares expensive?

https://www.ampcapital.com/au/en/insights-hub/articles/2018/October/Are-shares-expensive

Ray Dalio's powerful formula

Today's article covers a simple formula used by Ray Dalio to learn from challenging situations.

https://www.cnbc.com/2018/10/11/this-powerful-formula-helped-ray-dalio-build-his-18-billion-fortune.html

Trade War Beneficiaries

The "Trade War" coverage has initially focused on the negative impact it will have on various economies.   This article outlines economies that are benefitting.

https://www.bloomberg.com/news/articles/2018-10-22/thanks-to-the-trade-war-southeast-asia-has-an-investment-boom?srnd=premium-asia

Observations on Aspects of the Market

Market Volatility can be an opportunity for Long Term Investors.

https://www.janushenderson.com/aupi/post/18392/for-long-term-investors-market-volatility-can-create-points-of-entry

Smart Beta - potential risks for investors.

https://www.institutionalinvestor.com/article/b1bf9hmldl3x80/The-Smart-Beta-Risks-You-re-Overlooking

Inversion

Inversion is an interesting concept to help one focus on achieving their goals.

https://www.businessinsider.com.au/warren-buffett-business-strategy-set-path-to-early-retirement-2018-10

Philanthropy

This article discusses issues with managing Foundations.

https://www.institutionalinvestor.com/article/b1bdrr1g6jff06/The-Curious-Case-of-the-Vanishing-Capital

Share Market Outlook

Recent Volatility has brought out a lot of dire predictions for the stock market.  This article gives a different view.  We are continually amazed by the large change in view from day to day during volatile periods in the stock market.

https://www.smh.com.au/business/markets/the-market-is-cheap-why-the-worst-may-already-be-over-for-the-asx-20181016-p509v0.html

Sears files for Bankruptcy

Sears files for Bankruptcy

https://www.nytimes.com/2018/10/14/business/sears-bankruptcy-filing-chapter-11.html?rref=collection%2Fsectioncollection%2Fbusiness

Water vs Oil

Will Water become more valuable than Oil?

https://www.schroders.com/en/uk/private-investor/insights/markets/will-water-become-more-valuable-than-oil/

Solar Power

The Impact of Solar Power on the Grid

http://www.abc.net.au/news/2018-10-11/solar-farm/10366460

Industry Funds

Industry Funds have led the way in many ways.  Now after capturing a significant share of the market, Industry Funds are beginning to introduce new provisions, in this case, to freeze redemptions in the direct property options.  This highlights flaws in the super system in terms of liquidity, portability, investment allocation and overall asset/liability matching.  Hopefully any provisions will be solely for the benefit of the investor.

http://www.abc.net.au/news/2018-10-10/australias-biggest-super-fund-plans-for-property-downturn/10359198?section=business

Enough Said

The headline in this article says it all.

https://www.smh.com.au/business/markets/the-next-financial-crisis-is-staring-us-in-the-face-20181009-p508i8.html

Climate Change

Why half a degree of Global Warming is a big deal

https://www.nytimes.com/interactive/2018/10/07/climate/ipcc-report-half-degree.html?action=click&module=Top%20Stories&pgtype=Homepage

Denmark Tax Scandal

Today's article refers to a tax scandal in Denmark.

https://www.nytimes.com/2018/10/05/business/denmark-skat-tax-scandal.html

Soaring US Dollar

The effect of the Appreciating US Dollar on emerging markets.

https://www.theguardian.com/business/2018/oct/04/soaring-us-dollar-threatens-trouble-for-emerging-markets

Circle of Competence

An interesting article making us think about what we know and what we don't.

https://behavioralvalueinvestor.com/blog/2018/9/30/circle-of-competence

Battery Power

This article gives a good example of the real benefits of Battery Power based on the Tesla Battery set up near a Windfarm north of Adelaide.

http://www.abc.net.au/news/2018-10-02/tesla-battery-proves-a-leading-source-of-dispatchable-power/10326420?section=business

Will the Hayne Royal Commission Report be a Game-Changer?

Interim Report of the Hayne Royal Commission has been released.  What actions will come from this?

https://www.theguardian.com/australia-news/2018/sep/28/why-kenneth-haynes-banking-royal-commission-report-is-a-game-changer

Preparing for a Market Downturn

Today's article provides another view on preparing for a market downturn.

https://www.ricewarner.com/preparing-for-a-market-downturn/

Concentration Risk in Portfolios

Where underlying funds make the same/similar investments then you have more Concentration Risk than you may think.

https://www.institutionalinvestor.com/article/b19mz7cc095bhf/concentration-risk-in-long-duration-portfolios-manager-diversification-does-not-necessarily-mean-issuer-diversification

Banks take 1,726 days to realise they've broken the law: ASIC

According to ASIC banks are taking more than four and a half years to identify significant breaches.

So what is going wrong?

http://www.abc.net.au/news/2018-09-25/asic-reveals-how-long-banks-take-to-report-breaches/10302894?section=business

Westpac is ditching high risk property investors

Westpac is ditching high risk property investors.  This is interesting in that they originally provided these loans to the borrowers.
What would be the impact if the banks started doing this on all the home loans?

https://www.businessinsider.com.au/westpac-property-investment-loans-high-risk-2018-9

S&P lifts Australia's rating outlook

Australia's credit outlook has been upgraded from negative to stable by global agency Standard and Poor's for the first time in two years.

https://www.smh.com.au/business/the-economy/s-and-p-lifts-australia-s-credit-rating-outlook-on-surplus-expectations-20180921-p50586.html

Cryptocurrency Scams

Cryptocurrency Scams - ASIC has recently shut down a few offers in this space.

http://www.abc.net.au/news/2018-09-20/asic-warns-on-cryptocurrency-scams/10286528?section=business

Lobbying In Australia

Some insight into how big business deals with Government.

https://www.theguardian.com/australia-news/ng-interactive/2018/sep/19/lobbying-in-australia-how-big-business-connects-to-government

Good news - bad news

There is so much conflict in business stories - either good or bad news - that it makes it difficult for investors.  2 examples are shown below.

https://www.smh.com.au/business/markets/it-s-raining-money-why-you-shouldn-t-bet-against-wall-street-20180918-p504d1.html

https://www.smh.com.au/business/the-economy/we-don-t-have-any-strategy-to-deal-with-it-experts-warn-next-recession-could-rival-the-great-depression-20180917-p5046e.html

A brief history of the Volkswagen Beetle

Volkswagen has announced that they will end production of the Iconic Beetle in 2019.

https://www.forbes.com/sites/msolomon/2018/09/14/luxury-lineage-a-brief-history-of-the-volkswagen-beetle/

Ray Dalio

Some wisdom from Ray Dalio

https://www.smh.com.au/business/the-economy/hedge-fund-billionaire-spells-out-america-s-worst-nightmare-20180913-p503er.html?crpt=index

10 years after the GFC

10 years after the GFC.  A number of articles discuss activity at that time and some lessons.

http://www.abc.net.au/news/2018-09-13/global-financial-crisis-guy-debelle-rba/10240948

http://www.abc.net.au/news/2018-09-13/gfc-government-wargamed-financial-disaster-scenarios/10238912?section=business

https://www.schroders.com/en/uk/private-investor/insights/markets/10-years-on-from-lehmans-collapse-seven-charts-to-consider/

https://www.ampcapital.com/au/en/insights-hub/articles/2018/September/lessons-from-the-GFC

Yield and Income

This article revisits thinking on what is yield and what is income.

https://www.morningstar.com.au/funds/article/why-yield-and-income-arent-the-same-thing/170291

Massive Global Debt still a major risk

10 years after GFC, the massive global debt levels still pose significant risks for markets.

http://www.abc.net.au/news/2018-09-11/global-debt-looms-as-major-risk-ten-years-after-gfc-machin/10230538?section=business

Has finance been fixed?

The world has not learned the lessons of the financial crisis.

https://www.economist.com/leaders/2018/09/06/the-world-has-not-learned-the-lessons-of-the-financial-crisis

The Resistance against Trump

More commentary from an insider on the workings of the Trump administration.

https://www.nytimes.com/2018/09/05/opinion/trump-white-house-anonymous-resistance.html?action=click&module=Opinion&pgtype=Homepage

Royal Commission Fallout may favour "not-for-profit" sector

There was always going to be some fallout from the Royal Commission, but this article really presses home what "not-for-profits" have been arguing for a long time - "that all profits go to members".   It is difficult to argue with the principle of this.

https://investmentmagazine.com.au/2018/09/you-cannot-serve-two-masters-scheerlinck/

Fear: Trump in the White House

An interesting view on Trump from some insiders will feature in a new book.

https://edition.cnn.com/2018/09/04/politics/bob-woodward-book-donald-trump-fear/index.html

Royal Commission focus on APRA

With calls for more regulation of the "bad things" that financial institutions have done, the focus in this article is on the regulator, highlighting how they played their part with "feeble" regulation and enforcement.

http://www.abc.net.au/news/2018-09-04/banking-royal-commission-embarassing-apra/10200028?section=business

Why the Euro failed

Some analysis of the risks of having a common currency.

https://qz.com/1377098/why-the-euro-failed/

The Eerie Calm of the US Stcck Market

Today's article takes a different look at the recent performance of the US Stock Market to highlight the relative low level of risk in the recent market and why we shouldn't get complacent about risk.

https://www.schroders.com/en/uk/private-investor/insights/markets/the-chart-that-highlights-the-eerie-calm-of-the-longest-us-bull-market/

Breakdown of apartment supply for Sydney and Melbourne

Today's article provides a view on the potential supply of Apartments for Sydney and Melbourne.

https://www.businessinsider.com.au/australia-propety-market-sydney-melbourne-apartment-supply-price-falls-2018-8

Latest from the Future Fund

Here is the latest update on returns for the Future Fund.

https://www.smh.com.au/business/banking-and-finance/future-fund-s-bumper-return-comes-with-a-warning-from-costello-20180829-p500ja.html

Real Assets are the New Bonds

Today's article looks at the place Real Assets have in a portfolio. Traditionally Bonds have been used for their income-producing defensive qualities, but for this part of the cycle, Investors may find that Real Assets provide a better risk/return outcome.

https://www.institutionalinvestor.com/article/b19prw1qdrqblf/JPMorgan-Real-Assets-Are-the-New-Bonds

Global Economy Facing "Perfect Storm"

Today's article gives BIS view that the Global Economy could face significant risks due to US Tariff Policy.

 https://www.theage.com.au/business/the-economy/global-economy-is-facing-a-perfect-storm-warns-bis-chief-20180827-p4zzzq.html?promote_channel=edmail&mbnr=MTI3MzY1NTc&eid=email:nnn-13omn657-ret_newsl-membereng:nnn-04%2F11%2F2013-business_news_pm-dom-business-nnn-age-u&campaign_code=13IBU019&et_bid=29141255&list_name=2034_age_busnews_pm&instance=2018-08-27--08-09--UTC

Inflation

Today's article gives us a reminder of how we should invest if and when inflation re-appears.

https://www.mercer.com.au/content/dam/mercer/attachments/asia-pacific/australia/investment/Investment-Perspectives/Understanding%20Inflation%20and%20Its%20Impact%20on%20your%20portfolio.pdf

Royal Commission will be an Opportunity for Some

Industry Funds and Other Not For Profit Funds could benefit from any fallout from the Royal Commission

https://www.investordaily.com.au/superannuation/43490-industry-funds-eyeing-corporate-super-accounts

Your Lying Mind

Cognitive Biases are a fascinating thing that our brain has to constantly deal with.  This article gives a detailed explanation and some examples. 

https://www.theatlantic.com/magazine/archive/2018/09/cognitive-bias/565775/

Norwegian Sovereign Wealth Fund Q2 2018 Performance

Norwegian Sovereign Wealth Fund Q2 2018 Performance was strong aided by strong returns in Equities driven by higher Oil Prices.

https://www.ai-cio.com/news/oil-stocks-drive-5-5-q2-performance-norwegian-sovereign-wealth-fund/

How much Cash is too much?

Todays' article raises an interesting question.

https://www.smh.com.au/business/the-economy/why-having-too-much-cash-is-a-bad-thing-for-your-financial-future-20180820-p4zyj8.html

Fees vs Value

Today's article is a piece that tries to put up the proper argument for fees and value.  Lower fees are not always better for a client.  Value for money is the correct approach for valuing any service, and investment management is no different.

http://www.ricewarner.com/fees-versus-value/

Reversal of the US QE during the GFC - is this starting to happen?

Today's article highlights the impact any US Fed tightening of its balance sheet may have on the rest of the world.

https://www.businessinsider.com.au/turkey-lira-crisis-caused-by-the-us-fed-2018-8

Lowering your Expectations

Today's article comments on the observation that share prices don't always move in line with a good news or bad news story. (The Framing Effect)

https://www.thecluelesseconomist.com/single-post/2018/08/13/Lower-Your-Expectations-It-Increases-Share-Prices

Are Fees on Index Funds falling to zero?

Today's article highlights the latest evolution of index funds in terms of fee reduction with Fidelity launching two index funds with zero fees.

https://www.morningstar.com.au/etfs/article/are-no-fee-index-funds-coming-to-australia/169557

Tesla Shorter receives "Shorts"

Today's article takes a light-hearted look at an investor who has shorted Tesla, and how getting positions like this wrong can affect performance.

https://www.institutionalinvestor.com/article/b19g81cgr80d12/Musk-Sends-Einhorn-Short-Shorts-as-Bets-Against-Tesla-Hold-Strong

Gambling - Windfall gains for Crown funded by problem gamblers?

Today's article covers recent disclosure by Crown of its Poker Machine profits, showing the extent of losses by problem gamblers.

https://www.theguardian.com/australia-news/2018/aug/09/crown-resorts-reveals-profits-gained-from-pokies-for-first-time

GFC Impact still being felt

The impact of the GFC is still being felt as outlined in this article covering the settlement by S&P for rating CDOs.

https://www.smh.com.au/business/banking-and-finance/sp-settles-landmark-lawsuit-in-australia-over-its-role-in-the-gfc-20180810-p4zwrp.html

ASIC vs ACCC

Today's article discusses who is best placed to regulate effectively.

http://www.abc.net.au/news/2018-08-09/former-accc-boss-alan-fels-slams-asic/10092864?section=business

Pricing Infrastructure

This article highlights a major problem with the pricing of infrastructure.  At what point does revenue turn from a risk adjusted return and capital charge to super profits?  I would argue that Toll Roads in Australia have either gone bankrupt or created super profits for their owners, a very binary outcome.  The question is who is paying for these outcomes?

https://www.morningstar.com.au/stocks/article/transurban-profit-doubles-as-revenue-rises/169399

How big can the biggest Global Pension funds become?

Japan's Government Pension Fund continues to grow and is nearing $US 1.5 trillion.  When will these large funds growth "max out" and start paying out to their members?  What will be the impact of this on financial markets?

https://www.ai-cio.com/news/worlds-largest-pension-fund-nears-1-5-trillion/

ASIC takes positive action

ASIC has decided to take some positive action in response to the various compliance issues that have been highlighted recently.

https://www.theguardian.com/australia-news/2018/aug/07/asic-to-embed-staff-in-big-banks-to-enforce-compliance

Why so much money is wasted on the wrong infrastructure

Today's article highlights issues in govt spending on infrastructure.  Whilst there will always be a difference of opinion, the amounts involved are so large that we are all affected by the process.

https://www.smh.com.au/business/the-economy/why-so-much-money-is-wasted-on-the-wrong-infrastructure-20180728-p4zu6o.html

Confessions of a Portfolio Manager

Some interesting thoughts on managing funds are discussed in this article

http://blog.russellinvestments.com/confessions-portfolio-manager-1/

5 best and worst performing equity funds of FY2018

Not much explanation required here. 
What is interesting is the large disparity between the best and worst funds.

NOTE.  PPCP's Dynamic Market Long Fund has returned 26.54% (before fees) over the same period, putting it up with the best returning Large Cap funds.

https://www.morningstar.com.au/funds/article/5-best-and-worst-performing-equity-funds-of-f/169076

"On the Retirement Crisis"

Today we look at a major unsolved problem of financial security in retirement.
This is even after all the research and the new "whiz-bang" products being offered, retirees are no better off.

https://blogs.cfainstitute.org/investor/2018/07/24/screams-from-a-burning-theater-jeremy-gold-on-the-retirement-crisis/

Fund Manager performance affected by Size

Today we revisit an age old argument about the affect of FUM Size on Performance

https://www.investordaily.com.au/markets/43346-capacity-like-weighing-down-a-horse-lonsec

Industry Funds vs Bank Run Funds

Today we highlight 2 articles that put forward opposing sides of the argument.

https://www.theguardian.com/business/grogonomics/2018/jul/22/greg-jericho-industry-super-funds-keep-outclassing-retail-ones-but-the-attacks-dont-stop

https://www.moneymanagement.com.au/news/superannuation/no-certainty-industry-funds-out-perform-says-cfs

Why Good People do Bad Things

Interesting reading with litt comment required.

https://www.smh.com.au/money/banking/why-good-people-do-bad-things-20180716-p4zrq5.html

Why Index Funds Promote Market Efficiency

Index Funds have been growing in popularity with investors due to their low cost, index replication features.  Arguments have been made recently that Index Funds may cause market volatily or even cause the next crash.  This article explains how Index Funds may actually improve market efficiency.

https://www.msci.com/www/blog-posts/why-index-funds-promote-market/0977080570

How to Make Property Work Better for Society

Today's article is thought provoking, in that it makes us think a little differently about Property.

https://www.strategy-business.com/article/How-to-Make-Property-Work-Better-for-Society

Superannuation Returns not so "Super"

Today's article highlights the low returns delivered by some funds for their investors over the longer term. 

https://drive.google.com/open?id=1OOtBE0BQ1NFORH9FkRVTZQNfmDSzU6jN

Risks in a Diversified Business

Today's article looks at Diversified Businesses or Conglomerates and the risks associated with operating in more than one industry.

http://aicd.companydirectors.com.au/membership/company-director-magazine/2018-back-editions/june/strategist-jack-of-all-trades

How Hedge Funds are Performing

Hedge Funds can perform well in times of higher volatility. This article shows that the hedge fund index has not performed recently.

https://www.nytimes.com/2018/07/12/business/hedge-funds.html?rref=collection%2Fsectioncollection%2Fbusiness&action=click&contentCollection=business&region=rank&module=package&version=highlights&contentPlacement=1&pgtype=sectionfront

How the 'big four' Accounting firms could threaten the global economy

Today we look at some commentary on the expansion of accountancy firms into consultancy services.

http://www.abc.net.au/news/2018-07-12/richard-brooks-accountants-who-broke-capitalism/9971084

The Cost of Retirement

Today's article highlights the inevitable position we all face - what is the Cost of Retirement?
Flowing from this is the income level and capital required to provide for the Cost of Retirement.

https://www.morningstar.com.au/learn/article/falling-short-aussies-underestimate-the-cost/168815

Where to for the US Stock Market

Today we highlight some views on 10 year Nominal Return expectations for investors.

https://www.morningstar.com.au/stocks/article/us-stock-market-offers-worst-returns-for-next/168750

Some thoughts on Diversification

Today's article offers some thoughts on diversification.

https://www.smh.com.au/business/banking-and-finance/review-your-risk-and-sleep-well-at-night-20180706-p4zq03.html

Thoughts on Value Investing

Value Investing is a popular approach used by investors. Why?

Todays's article gives some thoughts on this question.

https://www.morningstar.com.au/stocks/article/why-value-investing-works/168708

Holding Cash in a Portfolio

Investors hold cash in their portfolio for various reasons, including liquidity, capital preservation and for the ability to time asset purchases at more attractive prices (ie buy when there is fear in the market).

https://www.morningstar.com.au/Video/cash-a-safe-haven-in-overvalued-markets/168660

"Exploiting a Vulnerability in Human Psychology"

Today's article focusses on Social Media and the effect it is having on the generations who are immersed in this technology.

Are Users of Social Media "basing their sense of self-worth on the number of "likes" they obtain"?

Are we creating a new form of addiction?

https://www.bbc.com/news/technology-44640959

Vanguard to Offer Commission Free Trading for ETFs

Vanguard is expanding its offer of Commission Free Trading of Vanguard ETFs to include many other non Vanguard ETFs.

This is a strategy of Vanguard leading the marketing to attract more business into its Vanguard Broking Accounts.

https://www.institutionalinvestor.com/article/b18wyy6hw7wwh6/Vanguard-Lures-Investors-With-Commission-Free-Trading-of-Rival-ETFs

https://pressroom.vanguard.com/news/Press-Release-Vanguard-Lowers-Cost-Investing-Broadens-Commission-Free-ETFs-070218.html

Invest Without Regrets - Preparing for the Worst

Today's article provides an interesting view on investment psychology. 

Preparing for the worst outcome seems to be a sound way to get around the "regret propensity" for each individual investor.

https://qz.com/1312744/how-to-invest-without-regrets-according-to-a-nobel-winning-economist/

What is Cash?

Today's article needs little explanation but serves as a reminder that things are not always what they seem. 

To quote the opening quote from the 2nd article:
"The Australian Prudential Regulation Authority has written to Australia’s major superannuation funds telling them that “cash” investment options better be what they say they are – “cash”."

https://www.smh.com.au/business/banking-and-finance/super-funds-misrepresenting-cash-investments-apra-says-20180629-p4zolf.html

https://www.moneymanagement.com.au/news/superannuation/apra-confirms-cash-ain%E2%80%99t-cash-some-super-funds

Economic Disconnect

Today's article (and report) focusses on community feedback on Australia's strong economic track record.

The article argues that leaders in business and Government must listen so that in future any "economic disconnect" is better managed to ensure that economic growth delivers the appropriate levels of prosperity to the community.

https://johnmenadue.com/allan-patience-fragmenting-australia/

https://www.ceda.com.au/CEDA/media/General/Publication/PDFs/CEDA-Comm-Pulse-June-2018-Final_reduced.pdf

Making Decisions Based on Limited Information

Today's article talks about how we often make judgements based on how things appear, at the expense of more detailed and complex analysis.

When one makes investment decisions you need to gather and assess all available information.  The quality and/or completeness of the data will ultimately affect the reliability of the investment decision process.

https://www.fidelity.com.au/insights/investment-articles/behavioural-finance-when-what-you-see-is-all-there-is/

One Risk Aspect of Investing

Welcome to our new blog – PPCP Article a Day

Today's article tries to demonstrate one risk aspect of investing.

For example assuming;

• A Share Index has a long term return of say 10% pa

• with Standard Deviation of Returns of 20% pa, and

• Returns are normally distributed (to keep things simple).

Then there is over 15% chance that any month has a return lower than -5% and there is over 20% chance that any year has a return of less than -5%.

Whilst the yearly result may not be surprising the monthly result seems high.

The point here is that unexpected returns do occur, they can occur more frequently than you think and investors should be prepared for this to occur during the term of an investment.

These 2 attached articles relate to a recent LIC that has underperformed quite unexpectedly on the downside in the first 2 months of operations.  Whether this has been caused by the investment cycle, poor investment selection or a combination it doesn’t matter.   Events like this can and do happen.

https://www.afr.com/brand/rear-window/l1s-rafi-lamm-mark-landau-torched-134-million-in-nine-weeks-how-20180624-h11sbt

https://au.finance.yahoo.com/news/why-l1-capital-long-short-055344739.html