Letters of the Week

Time lag on bonds? Growth stocks. What's happening with GoConnect?

Why so flat?
I am puzzled as to why GoConnect (GCN) shares are remaining flat, or worse. Can other folks see some problem that David Haselhurst can't?

– Name withheld

Editor's response: David has written in some detail on GoConnect in his column this week. Available here, he explains what's happening with the planned listing of its associate First Mongolian Investment Holdings, and some of the effects this may be having on the share price.

The lag effect

Reading Roger Montgomery's article on the less attractive returns on cash and bonds, I wondered why is it the returns on my fixed interest allocation in super have actually gone up (10% in the past 12 months). I'm presuming this is due to the fund having purchased bonds some time ago and the resultant capital gains that have been achieved as rates have come down. Given this time lag, I wonder whether Roger believes fixed interest in super is still a good investment in the current environment and what factors would bring about a decline in returns for this allocation?

– G Joye


Great article by Doug Turek (Goodbye to the 'All Ordinaries'). I'm interested to see how the 'Growth Stocks’ would have fared in figure 5 – one would assume they would closely mimic the ASX200 curve.

– A Browne

To read this week’s letters, click here.

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