PLUS The experts provide answers to some topical questions
SHARES ROSS GREENWOOD
What should my investing strategy be in the current market?
Go for defence, not attack, as the market boom reaches its peak. It’s a matter of when.
As the stock market boom has progressed, my history or my age is catching up with me. Though, unlike the cryptocurrency boom last year, there has not been a “but this time it’s different” moment in the stock market. Not yet, anyhow.
But just as inflated prices and questionable underlying assets caught up with cryptocurrency investors in a big hurry, so too will the inflated valuations on many Australian companies catch up with them.
FUTURE SHOCKS
You might also make a parallel with house prices in the major capital cities. The price increases (which average 70% from trough to peak in Sydney and more than 50% in Melbourne) eventually meant a first home buyer had to save more than $100,000 as a deposit and then to shell out 40% of their net income to manage the mortgage. The speculation in houses was aided and abetted by international buyers and owners of self-managed superannuation funds, which for the first time were capable of borrowing to buy property.
As the valuations increased and worries about first home buyers grew, the regulatory response to limit foreign buyers and to limit credit to investors were all that was needed to bring down valuations.
Consider also what Labor’s plan to change negative gearing and capital gains tax might do to the housing markets – if it is elected. This is the classic example of a policy created in one set of economic circumstances that may be implemented at an entirely different time.
Bu hikaye Money Magazine Australia dergisinin October 2018 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Money Magazine Australia dergisinin October 2018 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
An outrageous, beautiful monopoly
Telstra's mobile business is a cash machine with few competitors, giving it the highest returns in the world.
Drop the anchor to judge value
Buying and selling decisions should be based on where a stock price is going, not where it has been.
Powering the AI boom
Beyond the software and chipmakers, where will the energy come from?
Get into life
Tucked inside super are products that can protect you from life's inevitable uncertainties.
Paths to home ownership
Taking the road less travelled can sometimes deliver unexpected benefits.
Sold! Quick ways to add value
Small, strategic changes can have a big impact on the look and feel of your home. And get you a better price on auction day.
Money lessons the kids need to know
Your children can learn a lot from your past money mishaps. Here are eight financial conversations I have had with mine.
Property-investing rules: are they likely to change?
The pressure for the government to curb the tax benefits of tax concessions, such as negative gearing and the capital gains tax discount, is unrelenting. Most recently, independent senators David Pocock and Jacqui Lambie proposed five options for paring back investment property tax concessions, with savings to the Federal budget of up to $60 billion over the next decade.
What's love got to do with it?
A rollercoaster of emotions could be driving poor crypto behaviour.
Are we ready to be cash-free?
Saying goodbye to our piggy banks too soon could leave small businesses in the dark when problems arise.
