Dear %%first_name%%,
Charlie Aitken says that even though he believes in structurally low interest rates, he never thought he’d see the Aussie cash rate and Australian 10-year bonds with “0” in front of them. He maintains (and I agree) that if the Government doesn’t use fiscal policy to increase demand, there’s every chance we’ll see zero interest rate policy in 2020. Under that scenario, the Aussie dollar will have a 5 in front of it and Charlie says the best returns investors will generate will be via investing in unhedged global equity funds. He discusses this in his article today.
While still traversing Europe, Paul (Rickard) has taken time out to look at how our model income and growth portfolios performed in September. With the Aussie share market on track for its best year since 2009, our model portfolios performed strongly in September. Year-to-date, both portfolios have returned more than 20%.
Tony Featherstone says buying a small group of yield stocks for income is crazy but income investors have limited choice. Investors who need at least a 5% yield will have to buy shares. Tony says if you’re going to chase blue-chip stocks for yield, be careful and consider choosing funds rather than direct stocks. In his article today, he examines 5 managed funds.
Are you prepared if the ATO knocks on your door about your SMSF’s investment strategy? Many trustees have information in their head, not in writing, or have completed a standard investment strategy template that neglects to consider the fund’s specific circumstances, which is what the ATO is really after. Graeme Colley offers some suggestions to improve yours!
And in Buy, Hold, Sell – What the Brokers Say, FNArena records that stockbrokers have issued 6 downgrades and 1 upgrade so far this week.
Finally, in Questions of the Week, Paul Rickard answers readers’ queries about Latitude’s IPO – whether to take part or not; the Coles demerger from Wesfarmers – what is an investor’s cost base?; and Pilbara Mineral’s share purchase plan.
With a public holiday in some states on Monday, we won’t be publishing our Monday edition so we’ve made this a bumper! Talk to you Saturday!
It’s your last chance to register for our webinar tomorrow, where James Dunn and I will be discussing value stocks and answering your questions live.
Tune in to our YouTube channel to watch our investing show every Monday night and our property show every Thursday night.
Pick up a copy of my book Join the Rich Club from the Switzer Store.
And tickets for our next conference, the Switzer Income Conference in Sydney, Melbourne and Brisbane, are now available. Click on the event you would like to attend below:
Sincerely,
Peter Switzer