Eureka Correspondence

Recession tipping

Alan, I hope anyone can join your parlour game on the recession (see: Kohler’s Week: Things Are Getting Better, The End of QE, The Bond Bear Market). My view is that 2014 will see the global financial crisis return in a big way, as nothing has really changed. So a recession is on the cards, even with a change of government.

On that basis my tip is 90%. People out here in the real world are very nervous and hence still cautious, regarding spending. And we are supposed to be one of the “good” countries. I keep repeating that the analysts are the last ones to see this because they are too close to see what is behind the gloss.

Jack Little

Mismanaging the country?

Robert, as an uncommitted but generally Green voter, I have little regard for the competence of either of the main parties but I was surprised by your comment about the appalling level of the current government in your recent article, The key pointers to problems ahead. I realise that they have failed to sell their program and opinion polls show that both the Prime Minister and Labor are on the nose but I was wondering what particular actions, if any, by the government have given rise to your assessment of their management of the country?

Keith Fletcher

Editor’s response: Thanks for your letter. Robert recent wrote an article for our sister site, Business Spectator, that looked at the numerous mistakes the Gillard government has made (see: Seven deadly Gillard sins).

SMSF balancing act

I would appreciate more articles on balanced portfolios for SMSFs. My wife and I, both 80 years old, are trying to protect our asset base whilst maintaining a yield of between 5% and 6%. To do so we are heavily skewed toward shares that pay fully franked dividends and have to accept the risk and wild fluctuations.

Editor’s response: Scott Francis has just written an article that I think you may find of interest, Going for growth: A 30-year retirement plan, while Doug Turek touched on the need for a balanced portfolio in his recent article, Is higher risk paying enough? Doug also had some advice on successful investing in his most recent article, The secrets of wealth destruction.

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