Diversified Portfolios - International Equities - 31 January 2016
InvestSMART International Equities Portfolio January Report
Plan for past returns and you will lose
Anyone whose investment strategy is modelled on past returns is kidding themselves. It's time to face reality or lower savings targets.
The tips and traps of trading ETFs
Investors who don't understand the peculiarities of buying and selling ETFs will miss out on some of their benefits. Exchange-traded funds are gaining traction with retail investors in Australia for some very good reasons: they offer instant diversification, the fees are low and international markets can be bought without any fuss.
Don't panic when you're still being paid
When markets are volatile remember it's prices, not income. Payments from equities have been far calmer than you may realise.
Is this 2008 or 2011 all over again?
Let's face it no-one really knows what is going to happen during the rest of 2016 but we can say something more sensible about what might happen if the news turns out to be bad - a rerun of 2008 seems unlikely.
Why you should hold more equities in retirement
Dialling down exposure to equities as you grow older is a big mistake. As we all live longer, it's the "safe" portfolios that are risky.
Why we all stall in wild markets
Markets are always volatile, but investors only remember that when prices drop. They are missing out on opportunities.
Why we think Australian equities are kinky
InvestSMART has recently reviewed their Diversified Portfolios and projected returns for the different asset classes. The take-away? Our portfolios remain well diversified and we have decided not to change any weightings across the various asset classes.
Australian equities, are currently a little bit kinky or volatile, but at these prices, should provide a decent long term returns with a few meaningful bumps along the way. Bond investors shouldn't expect too much.
There is no "big problem" with ETFs
Some ETFs are better than others, and it pays to know the market before you pick the product. Everyone should be open to a bit of intellectual debate. When it comes to investing, you have to be willing to listen to other people's opinions. You don't have to buy what they're saying, and sometimes it's good to "block out the noise", but qualified views are always worth hearing.
How Robo Advice works
To trust robo advice, you have to understand how it works. It's not as mysterious as it sounds.
US shares did well in January. Stay away.
The world's largest economy looks overvalued and there's no more free ride from a falling $A.
5 Surprising things about markets in 2015 and how it affected your portfolio
1. Despite all the bad news, diversification helpedInvestors were riding high in the first half of the year and it looked like we were heading for a bumper year, then it all got a bit trickier. Interestingly, markets shrugged off worries over the break-up of the European Union but the prospect of slowing Chinese economy really changed the landscape, especially in Australia. In the end, some asset classes still produced double digit returns.
SMSF portfolios are 'upside-down'
Who would ramp up risk in retirement? An ATO survey has shown the average SMSF does exactly that. Good news: it's easily fixed.
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