End of cycles? Think again
The current risk aversion in both debt and equity markets means we’re setting up for a big one. Here we go again, says Frank Gelber. Will we repeat the mistakes of the financial engineering (FE) boom? Not exactly. There are a whole lot of new mistakes we’ll make next time around. But the essence of
February 07, 2010
Anchoring and aversion to ambiguity
Last year finished up being a real surprise for many investors and commentators alike. After dipping 15 per cent in the early part of the year, the Australian sharemarket looked set to repeat 2008’s 38 per cent fall. But how different the year turned out to be, with the market staging an incredible recovery from
February 07, 2010
Know your product
Advisers should know the full range of giving options available – and how they match specific philanthropic aims – before their clients decide to donate, writes Simon Mumme. The growth of private ancillary funds (PAFs) – formerly named prescribed private funds (PPFs) – shows that a new culture of giving in Australia is catching on.
February 01, 2010
Indexing is an alternative, not a replacement
The recent performance of active managers doesn’t mean they should be dumped in favour of using index funds, says David Wright. A number of trends have emerged from the global financial crisis (“GFC”), not the least of which has been the large inflow of investor money into index funds. While this has been very noticeable,
December 07, 2009
Does gearing still work?
Ron Bewley says it’s too soon to tell what effect the global financial crisis has had on properly-constructed, long-term gearing strategies. People only ask questions such as, “Does gearing still work?” when the market is bad – and that is not the time to assess a long-term strategy. We, and others, have argued that the
December 07, 2009
Are we having fun yet?
Frank Gelber looks back over an interesting period in the history of property markets in Australia, and concludes that an upswing is coming. At the risk of alienating those caught up in the course of events, I must say that, as a forecaster/researcher, I haven’t had this much fun since the 1980s boom and 1990s
December 07, 2009
Nothing to fear but fear … and greed
Basic human emotions are the overwhelming drivers of investor behaviour. Craig Hobart looks into why. In the last edition of Professional Planner we started to delve into the wonders of behavioural finance theory, focusing specifically on the role that investor psychology, emotions and confidence can play in investment decisions and in turn their influence in
December 07, 2009
On the hunt for future funds
Future2, the charitable foundation of the Australian financial planning industry, is searching for new sources of contributions. Simon Mumme reports. Most of the money raised by the financial planning industry’s charitable foundation, Future2, has so far been supplied by two companies. AMP gave $100,000 on the heels of the Financial Planning Association’s (FPA’s) annual conference
December 01, 2009
Addressing the big issue of gearing
The traditional model for investing in direct property is not broken, argues Dug Higgins. But watch out for debt While the green shoots of economic recovery are valiantly emerging from the wreckage of the credit crisis (with no guarantee that they will not suffer some wilting), the short-term outlook for the unlisted property funds sector
October 07, 2009
Beware the common wisdom
Frank Gelber explains why we should not believe everything we read. Commentators tend to treat the here and now as though it will last forever. Accordingly, the weight of current opinion sways in the breeze, buffeted by each piece of good or bad news, usually biased towards reflecting the latest piece of news. Now, after
October 07, 2009
Why smart people do dumb things
After receiving average annual returns of around 25 per cent for four consecutive years, Australian share investors have experienced a rude shock over the past two financial years, with the S&P/ASX 200 Accumulation Index falling 13 per cent in 2007-08 and 20 per cent in 2008-09.
October 07, 2009
More than just money
With less money to give, recession-struck donors need to sharpen other philanthropic tools, writes Simon Mumme. The core mission of strategic philanthropy is to overcome entrenched social problems – so during times of economic turbulence, funders should be trying their hardest to maintain their commitments. The downturn shouldn’t stop funders from dedicating time and resources
October 01, 2009
