11 Nov 2014

Volatility is an occasional yet inevitable feature of equity markets. Corrections are to be expected over the course of a long bull market; indeed, they are often healthy pauses that set the foundations for the next upswing. However, common behavioural biases such as herding and loss aversion can encourage many investors to react emotionally and […]

21 Oct 2014

Ever heard of the amygdala? It’s the part of our brain that governs subconscious responses to, and memories of, fear, pleasure and pain. Evidence suggests the amygdala, essential to our day-to-day survival, is terrible at making investment decisions. The problem is that faced with complexity, rather than think more about an issue, we tend to […]

20 Oct 2014

Global shares may have had a “rough week”, but there are signs that the stock markets may be close to a low, says AMP Capital chief economist Shane Oliver. Mr Oliver said concerns about global growth and increased concerns about the Ebola crisis have seen most share markets fall in recent weeks. But Australian shares, […]

07 Oct 2014

This month we look at the importance of actively contributing to superannuation and how this can assist in increasing retirement savings and ultimately ensuring a comfortable retirement.   Please find below the link to our monthly snapshot for October.   http://eread.com.au/visis/7351   We then look at the issue of inflation and how to beat it […]

24 Sep 2014

Nearly half of Australians aged under 50 have admitted they have little or no understanding of the insurance cover provided by their superannuation fund, according to the Association of Superannuation Funds of Australia (ASFA). The survey asked respondents to rate their understanding of the insurance options available through their super fund. One in five Generation […]

17 Sep 2014

If history is any guide, non-mining business investment will soon pick up, says RBA assistant governor Christopher Kent. Speaking at a Bloomberg conference in Sydney yesterday, Mr Kent said non-mining business investment has been subdued – with capacity utilisation “below average levels”. “Meanwhile, over the past year or so there has been a gradual increase […]

09 Sep 2014

EY argued that decades old industry approaches “have devalued advice by offering it as a loss leader into a product sale.” The consulting group noted that this has resulted in “technical capabilities and skills required to deliver high quality advice being undervalued relative to sales capabilities.” Another effect has been consumers’ “limited appreciation of potential […]

28 Aug 2014

While it does not support a mandatory minimum balance for SMSFs, ASIC has suggested there could be merit in introducing a “soft” minimum balance or guidance on an appropriate minimum balance for SMSF establishment. In a submission to the Financial System Inquiry (FSI), ASIC acknowledged there are situations in which establishing a low-balance SMSF may […]

27 Aug 2014

ASIC has called on the financial services industry to make the distinction between independent and restricted advice. In its second submission to the 2014 Financial System Inquiry, the Government’s financial services regulator has made a raft of recommendations, including one based on the argument that consumers are regularly under the impression that ‘… they are […]

19 Aug 2014

Australia’s largest financial services conglomerates have been placed on notice by the Australian Prudential Regulation Authority (APRA) that they have to take consistent responsibility for all elements of their businesses, even those which fall outside APRA’s jurisdiction. The point has been made in draft guidance issued by APRA which the regulator has said it will […]