Letters of the Week

Food for thought on India. Why a strong share exposure will be maintained, and stats on superannuation’s over-60s.

India in perspective

Michael Feller's feature (see Indian summer not forecast) is truly a gem in the current confused state of the investment and economic climate. It clearly portrays the fact that India is currently not a choice substitute for China which, although endowed with massive cash reserves, could be hampered by its over-population. Michael's population and GDP charts clearly illustrate the strain on the two giant nations in comparison to the third giant, the US, and provides timely food for thought for the war games in the Department of the Prime Minister and Cabinet in Canberra pertaining to the white paper action team.

– V Massonic

Business as usual

I found Scott Francis's article Should you quit the market? very refreshing, given that most recent commentary has been biased towards reducing or even eliminating exposure to equities. I do note that the banks are still open for business and will more than likely pay their dividends, I still have to line up at the Woollies checkout, and Bunnings is always busy. BHP Billiton and Rio Tinto are still exporting ore and it appears to be “business as usual”. This may seem a bit simplistic but my current share exposure of about 75% will remain and I thank Scott for his article that reinforces my thinking.

– S Ford

Super’s over-60s

In Bruce Brammall's article Super heavyweights, statistics on the number of SMSFs with members older than 60 and not in pension phase would be quite interesting. I come across many funds where they receive no advice (except from the accountant), are 60-plus and are only partly in pension phase, which is hard to understand. I've been trying to get the same figures on the total super pool post-60 years not in pension phase, but it would be under 30% I suspect – a nice win for the government to keep clipping their 15%.

– A Donachie

To read this week’s letters, click here.

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