The Independent Adviser

Economy

‘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...

Choose Your Budget

The proximity and timing of the Federal Budget and upcoming election means that neither the Coalition nor Labor have provided much Budget detail. Instead, voters must choose from their policy ideas. Whichever you choose, they won’t be legislated until the winning party can call the new parliament together and persuade...

Trump Trade Wars

Have we learned anything about investing from the World Cup? Perhaps it’s that nothing is a sure thing – ask Germany, Italy, Spain, etc. The analogy for investing is that no investment is guaranteed, so diversifying away some risk is really important. Apart from diverse spread, buying quality assets while...

Investing amid Geopolitical Change

We’re living in ‘interesting times’ as the Chinese curse is said to have wished. China is steadily flexing its growing power and Russia’s shrewdly successful global chess game has become more visible. Both are led by effectively ‘Presidents for life’ with longer timeframes than the west, unfettered by democratic values....

What the 2018 Budget Means for You

Background Our Reserve Bank has kept interest rates at a record low level because our economic growth is quite modest – wages growth is still very slow and inflation remains below target. It took Government several years to restore tax revenues after 2014 when the commodity boom ended because companies were...

Outlook for Australian Banks

Investors usually have some exposure to Australia’s banks. They’re over-represented in our ASX at 35% of the ASX300 index, compared with about 25% of the US S&P500 Index. It’s because Australia’s industrial base has been hollowed out by the decline in manufacturing. So, if you just buy the overall market,...

Transport Revolution

A slow transport revolution is under way From environmental and increasingly a cost point of view, electric powered vehicles are becoming popular. It’s a trend boosted by significant technological changes and now some countries have mandated towards Electric Vehicles (EVs) to reduce carbon pollution. EVs range from: hybrid electric vehicles...

Trump’s Tax Cuts

Large US corporate tax cuts from 35% to 21% will boost Trump’s standing at home, though covering its cost may not appear on US voters’ radar until much later. In the short-term we can expect a small rise in US earnings per share with a minimal boost to international equity...

Geo-politics… what’s an investor to do?

As the sabre rattling around North Korea continues, world markets seem relatively unfazed. Perhaps concluding neither side would be intemperate enough to press the nuclear button… let’s hope. If the market is wrong about this, money may be the least of our worries! But it has pushed the gold price...