The Wotherspoon Wealth Blog

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Wotherspoon Top Performer in 2019

Last year was a particularly good year for investment returns. The latest data from superannuation consultants Chant West shows growth-oriented super funds delivered an average 14.7% return in 2019. They define a “growth fund” as one with 61 to 80% allocated to growth assets (largely related to shares, property and...

How to Invest in 2020

The two previous blogs in this series (5 Reasons for Optimism in 2020 & 5 Reasons for Vigilance in 2020) identified some key global themes for 2020. But what’s an investor to do? Here’s our 5 tips for successful investing in 2020: Diversify and look beyond conventional assets Renew your focus...

5 Reasons for Vigilance in 2020

Interest rates are expected to stay lower for longer and the looming US election seems to have eased global trade tension but investors must remain vigilant.  With many moving parts, here’s our top 5 reasons to remain alert: Universal social unrest Monetary Policy running its course Recessionary risk Deflationary impact...

5 Reasons for Optimism in 2020

This three-part blog series provides a detailed investment outlook for 2020, including our 5 reasons for optimism, 5 reasons for vigilance and our 5 best investment ideas for 2020.   At the beginning of 2019 the market had shifted its thinking on interest rates and US rates began to rise....

Limiting Investment Risk

Safety used to pay little… but now pays virtually nothing.  Interest rates have never been so low.  Australia’s cash rate is now 0.75% p.a.; 10 year Government bonds were around 5% in 2011 but are now around 1% p.a.  Many Japanese and European bond rates are now negative.  One Danish...

Investing with low rates

Interest rates have never been this low. If you’re an investor, you’re now getting paid less for your savings, so what do you do? Do you accept more risk and put more of your savings into growth assets (shares and property), despite recent market jitters? Is it better to invest...

What I learned about Investing from Metallica & Megadeth

In the early 1980s, a talented young guitarist was kicked out of his band. The band had just been signed to their first record contract, and they were preparing to record their first album. A week before recording began, they fired the guitarist. There was no warning, no discussion. The...

Persia

Some of you may remember our previous travel blogs… ‘Inspirational Iran’, ‘Surprising Romania’ and ‘Romania to Slovak Paradise’… well, here’s another covering Iran, Armenia, Georgia and Greek Macedonia (much of the old Persian Empire): The ancient Silk Road trade route linked Europe with China and India through Persia via Byzantium...

‘Burning’ for astute regulation

Though well intended, government regulation of investment advice over the last twenty years created supervision and compliance that suffocates financial service delivery. Political appetite for higher governance and control has driven the following: Financial Services Reform (FSR) Act of 2001, 2009 Ripoll inquiry, 2010 Cooper Review, 2012 FOFA Legislation, 2014...

Investing lessons from the election

Few companies or investors expected the recent Coalition Federal election win but many were apprehensive about Labor’s proposed changes.  So anxiety about franking credits, capital gains tax and superannuation policy stability has now eased.  What does the next 3 years now hold for investors? The election result reinforced some investing...