Increasing yield through selling options

Volatility is the only thing we can be certain of today. The crazy price action in the past 3 months is enough to make any prudent investor want to stay away from the stock market.  However, if we take a closer look at the market action, we can still find some safe investment strategies using [...]

A Hybrid Income Strategy

Australian investors are a lucky lot when it comes to getting big dividends from our stocks. Dividend yield of more than 6 per cent is not uncommon especially when you include franking credits which can add another 43 per cent to fully franked dividends if you have an SMSF in pension phase. I remember how [...]

Interest rates falling?

Everyday we read about how well the Australian economy is doing and how inevitable it will be for the RBA to raise interest rates. Like most other people, I was expecting interest rates to go up so I was very surprised to read this article Woe for savers as banks slash rates which stated that [...]

Will the bond rally last?

Looking at the chart above, it quite obvious that bonds have outperformed stocks in 2010. The S&P 500 (red line) is down 2 percent while TLT, the ETF for long-term bonds (blue line) has rallied 17 percent since the start of this year. The spectacular bond rally in recent weeks has become the hottest topic [...]

Term deposits vs treasury bonds

I would like to apologize for the lack of new posts in the past few weeks as we were away for two weeks and last week I have been busy with getting the household back in order and helping the newest member of our family (a homestay student from China) settle in. I have also [...]

Hybrid Securities Part 3 – Preference shares

Many thanks to Dean Greacen from SMSF Investor for today’s post. Dean will be sharing with us a series of posts on Hybrid Securities, which could be a great investment for SMSFs seeking high yield with capital growth. A preference share is a type of equity interest which has preferential rights over ordinary shares. The company’s [...]

Hybrid Securities Part 2 – Convertible notes

Many thanks to Dean Greacen from SMSF Investor for today’s post. Dean will be sharing with us a series of posts on Hybrid Securities, which could be a great investment for SMSFs seeking high yield with capital growth. Convertible Notes are debt instruments that may be converted to an equity holding at a future date. [...]

Hybrid Securities Part 1 – what are they and what are the risks?

Many thanks to Dean Greacen from SMSF Investor for today’s post. Dean will be sharing with us a series of posts on Hybrid Securities, which could be a great investment for SMSFs seeking high yield with capital growth. Hybrid securities have the characteristics of both debt and equity and the enormous growth of hybrid securities [...]

High interest cash accounts for SMSFs

In my last blog post, I mentioned that with the rising interest rates and low inflation, cash is becoming an attractive investment option especially when compared to the increasingly volatile stock market. I started my search for good high interest savings accounts and term deposits and noticed that some of the highest yielding accounts were [...]

Why I am (still) buying Telstra

Today is expiration day for August 09 ASX Exchange Traded Options. By end of today, I will know if SLI Super would have become the owner of another 9360 Telstra shares. On 20 July 2009, I sold 9 contracts of Telstra 3.36 Aug09 put option for 0.15 per share. At the time of writing this [...]

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