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