SMSF Investment StrategiesSharing Simple Strategies for Self Managed Super Funds
Three can get you two
“Debt will get you in trouble” is a strange admonition when it comes a guy who helps to lend $1 trillion of it. This was the opening line used by Bill Gross, Managing Director of PIMCO the world’s largest bond fund in his Investment Outlook for June 2010.
In this issue, he talks about the dangers [...]
Rising bond yields – any cause for concern?
On Monday 5 April 2010, the 10 year US treasury bond yields crossed 4% for the first time since June 2009 (see chart of $TNX below). Bulls believe this is a good sign. Bond yields typically rise and bond prices fall when the economy improves because investors will pull money out of safe, government-backed bonds [...]
Forget Greece, Dubai will default first
While all eyes are focused on Greece, Dubai is quietly trying to work out a deal to restructure USD 22 billion of debt that is coming due soon. Dubai World rocked global markets on Nov 25, 2009 with a request to delay repaying $26 billion in debt linked to its main property units Nakheel [...]
Australian house prices in 2010 – part 2
I don’t know if many people read or realised the significance of this low key article “Westpac tightens mortgage criteria“ in the Business Age two weeks ago. Basically what it said was that Westpac has lowered its loan-to-valuation ratios (LVR) for new full-documentation mortgage customers from 92% to 87%, including two per cent for lenders’ [...]
Is it really different this time?
Recessions are nothing new. From the chart above, there has been 5 recessions (grey areas) in the last 30 years in the US. A recession is usually a few quarters of negative GDP growth. After some help from the government and the reserve bank in the form of incentives and interest rate cuts, the recession [...]
Are we rich or do we just look rich?
Stock markets across Europe tumbled more than 3% last night on the news of debt problems at Dubai World, a government investment company in Dubai. Banks who are the major creditors for Dubai World were the worst hit, with the Royal Bank of Scotland share price falling by 8%. Yesterday, the Shanghai stock market also [...]
Australian house prices in 2010
There is a great debate going on whether property prices will continue to go up, or collapse in 2010. The recovery in property prices in 2009 has been nothing short of spectacular. In many areas, prices are now even higher than what they were in the last housing boom which peaked in December 2007. The [...]
Flight to safety starting
In the last few days, the only “green” on my watchlist of Australian stocks were those of defensive stocks like utilities and consumer staples while the mining and banking stocks tumbled. Telstra, which was so unloved in the past months is finally making a strong comeback. For those public super funds who have to maintain [...]
Double dip recession soon?
I remember a few key people who warned about an impending recession back in 2007 when the stock market was still making new highs. One very vocal person was Nouriel Roubini, an economics professor from New York University, who was so bearish that he was nicknamed “Dr Doom”. Since his predictions have come true, his [...]
