The Tortoise, Hare and Financial Markets

tortoise and hare

Why stock-market volatility tests our resolve In the Aesop’s fable of the tortoise and the hare, the hare is so confident of winning the race that he stops to have a nap. Meanwhile, the tortoise plods along without stopping, and to the hare’s utter surprise, wins the race.  The moral lesson of the story is that we can be more successful … Read More

Who Wins from a Trade War?

Since the federal election in Australia last month, there has been increasing talk of a recession, the Reserve Bank has lowered interest rates to an all-time low of 1%, and there is increasing talk of of a global economic slowdown. The last recession in Australia was in 1990-1994, the famous ‘recession we had to have’, according to then federal treasurer, … Read More

Helping Your Grand-children Succeed in Life

At my firm, Capital Partners, we often have conversations with clients about how they might help family out from a financial perspective, but a subject that is rarely discussed is their grand-children’s student loans. When it comes to retirement planning there’s no doubt that the initial focus is on questions like – how secure will we be?  How much will … Read More

An Emotional Perspective on the Market

The last few months have been a roller-coaster of returns, and what a difference a quarter makes.  It is hard to forget the sinking feeling we had in the last quarter of 2018, when the share market fell 9.27 per cent between the start of October and the end of the year. One of the things I have found having … Read More

Vale John Bogle

Many of our readers may never have heard of John Bogle, and yet he was one of the most important figures in the investment industry over the past 50 years. For investment industry insiders he is the father of modern index funds. He died last week aged 89. Bogle was the founder and CEO of Vanguard Investments, now the largest … Read More

The 70-20-10 Rule for Investing

I’ve been thinking a lot lately about what investors should expect from financial markets and how to deal with the inevitable emotions that come from volatility and downturns in markets. Over the past two months we have seen markets jittery once again, with the S&P/ASX300 retreating by -6.18% in October and again by -2.75% in November.  This is in contrast … Read More

Who Should be Concerned When Markets Tumble?

When markets tumble, as they inevitably do from time to time, we are always inundated with news headlines designed to shake you to your boots and leave you pondering the impact on your own investment fortunes. We’re only human after all! For those who don’t work in financial markets, a severe market down turn is really the only time you will take any … Read More

GFC Ten Years On | A Reflection on the Collapse of Lehman Brothers

We have just passed the anniversary of the scariest day of my financial career – the day Lehman Brothers collapsed.  While the GFC was well underway, it was the Lehman Collapse that shifted us from a garden variety downturn, to a truly momentous event that threatened the financial system itself. In the lead up to 16 September 2008, we had … Read More

Creating Family Harmony

“ You don’t choose your family. They are God’s gift to you, as you are to them.”    Desmond Tutu None of us expects life to be perfect and I guess in the game of life some get luckier than others. However, preserving happy healthy relationships with the people we care most about is one of our most important indicators of … Read More

Planning to Give?

giving back

“As you get older you will discover you have two hands, one for helping yourself, and one for helping others.”                                                                                    … Read More

Dealing with a Liquidity Event

A liquidity event can be a once in a lifetime occurrence and may present specific issues an individual has never dealt with before. Liquidity events fall into three broad categories: sale of a business or major asset; inheritance; and divorce settlement. Business sale Many business owners are savvy with money and know what to do when the proceeds of their … Read More

Why Financial Advice in Australia is Broken

The revelations coming out of the Royal Commission into banking, superannuation and financial services recently have been remarkable. For AMP to admit to deceiving the regulator 20 times over one issue is an extraordinary admission and one AMP had clearly hoped would never see the light of day. When AMP executive Anthony Regan said the words “we preferenced shareholders not clients” the Australian public could see … Read More

Money Habits: Why Are The Rich So Rich?

It’s easy to think that people with money got lucky, inherited it or just got famous somehow. But the truth might be different. Sure, some people do get lucky but the vast majority of people with money got there the old-fashioned way.  Take the chairman of Harvey Norman, Gerry Harvey. He’s worth $3 billion but he says he stopped counting … Read More

A Positive Cash Flow Story

Australian Cash

Each month we either have month left at the end of the money, or money left at the end of the month! This story lies behind my passion for helping people get their household spending in order. Before going into business in 1999 my family spent several years paying down personal debt to get into the position to be able … Read More

Defining Wealth Management

“Fortunate are those who take the first steps.”  Paul Coelho   The term wealth management means different things to different people. If you asked 10 individuals to define wealth management you would likely get 10 different answers. Indeed, ask 10 financial advisers and the answers would probably be just as diverse. Most of the answers will be around the management of money and investing.  While this … Read More

Going Green, Going Social

Building a sustainable investment portfolio. Growing interest in the impact of fossil fuels on the global climate often sparks questions from people about how they can integrate their values around sustainability with their investment goals.   The idea of ‘responsible investing’ seems to be catching on in Australia, with a global sustainable investment group that covers Australia, New Zealand and other developed nations, reporting that assets … Read More

Buffett Wins 10-Year Hedge Fund Bet

In December 2007 the Oracle of Omaha, Warren Buffett, made a $1 million bet that an S&P 500 index fund would beat 10 hedge funds, net of fees, over 10 years. At the time there wasn’t an immediate rush of hedge fund managers taking up the offer until Ted Seides of Protégé Partners stepped forward to take the bait.  A confident Mr Seides was … Read More