31 Jul 2023
Asian Century: China collapse
- Posted by Dejan Pekic BCom DipFP CFP GAICD
There is not much doubt that this will be the Asian Century given that half of the World’s population live in this region however China may not be as dominant as has been previously forecast.
The challenge is demographics due to the One-Child Policy implemented by China between 1980 and 2015 to curb the country’s population growth.
The supply of working-age people peaked at a billion in 2010 according to the Chinese census but the Chinese census results in 2020 revealed that the number of working-age people had fallen by 30 million.
Chinas median age is now higher than the Unite States, deaths outnumber births and the fertility rate which needs to be at 2.1 children per adult woman to maintain a steady population has fallen below 1.1.
If China has ghost cities now, imagine what will happen to property values in a country where half of its population disappears?
Click for chart.
If you have family, friends or colleagues that want financial advice please ask them to contact us and we will work out how best to help.
24 Jul 2023
Decarbonisation: Solar Hydrogen Device
- Posted by Dejan Pekic BCom DipFP CFP GAICD
Are we there yet?
We must be close given the vast dollars being spent on clean energy solutions.
The World is planning to transition to Net Zero by 2050 and last year alone US$1.1 trillion was spend on renewable energy, storage, electrification and carbon capture.
Rice University engineers have worked out how to turn sunlight into hydrogen using a device that combines halide perovskite semiconductors with electrocatalysts in a single, durable, cost-effective and scalable device.
This is a big breakthrough.
Click to read.
If you have family, friends or colleagues that want financial advice please ask them to contact us and we will work out how best to help.
20 Jul 2023
Inflation Expectations
- Posted by Dejan Pekic BCom DipFP CFP GAICD
The news has been good for investment portfolios heavily weighted to growth assets (specifically Australian listed companies and international listed companies) over the past 12 months to 30 June 2023 with most returning over 10% after costs and before tax.
What is driving this?
Inflation or more precisely inflation is falling in both the developed World and emerging World and is forecast to drop lower but not for the emerging World.
Click for chart.
If this trend proves correct then asset price returns will continue to improve but the future is always an unknown.
This is why we adhere to Benjamin Graham’s value investing principles which teach us to remain invested according to our appetite for volatility and look to buy more quality assets when prices fall.
If you have family, friends or colleagues that want financial advice please ask them to contact us and we will work out how best to help.
7 Jul 2023
Friday Tidbit
- Posted by Dejan Pekic BCom DipFP CFP GAICD
Superannuation is such an amazing taxation vehicle to use to accumulate wealth for retirement.
Income (rental, dividend and interest) is taxed at a maximum 15% and capital gains are taxed at a maximum 10% provided that the investment has been held for a minimum 12 months.
Also, you can continue to contribute into this taxation vehicle up to a total balance cap limit of $1.9m per person.
For a couple that equates to $3.8m that can be rolled over into an account based pension which will then pay no tax on income, no tax on capital gains and no tax on withdraws during the decades that you are retired.
As far as taxation vehicles go in Australia, it is in first place when you exclude the primary residence which is also advantageous because it attracts no tax on capital gains.
We have attached the superannuation contribution cap limits that apply from 1 July 2023 for both concessional contributions and non-concessional contributions.
Click for table.
If you have family, friends or colleagues that want financial advice please ask them to contact us and we will work out how best to help.
5 Jul 2023
Market Metrics: ASX Winners & Losers (Part Two)
- Posted by Dejan Pekic BCom DipFP CFP GAICD
Investing is hard.
Attached is the single year calendar performance since 1994 (except for year 2023 which is only 6 months to the end of 30 June 2023) for the top 200 publically listed companies on the ASX (Australian Stock Exchange).
It also shows the biggest fall from peak to trough in each calendar year (except for year 2023 which is only 6 months to the end of 30 June 2023).
Not all calendar years posted a positive performance however during every single calendar year there was an opportunity to buy at a discount.
Intra-year falls happen every single calendar year.
Click for table.
Investing is hard which is why speculating so often fails.
The smarter method is to learn from Benjamin Graham’s value investing principles which teach an investor to remain invested according to thier appetite for volatility and then look to buy more quality assets when prices fall.
WARNING, this does not constitute Personal Advice. To discuss if this is an appropriate strategy for your given circumstances please do not hesitate to contact us directly.
If you have family, friends or colleagues that want financial advice please ask them to contact us and we will work out how best to help.
3 Jul 2023
Market Metrics: ASX Winners & Losers (Part One)
- Posted by Dejan Pekic BCom DipFP CFP GAICD
Investing is hard.
Attached is a 1 year performance table to the end of 30 June 2023 for all 2,077 publically listed companies on the ASX (Australian Stock Exchange).
It ranks them in order of highest gainers to biggest losers.
Even though the ASX returned 15.27% in total to 30 June 2023 the numbers still confirm that investors had 1,349 opportunities to either lose money or not make any money at all.
Meaning that 64.9% of all the publically listed companies on the ASX were either loss makers or dud investments.
Click for table.
Investing is definately hard and challenging which is why the smart money seeks to employ the best PMs (Portfolio Managers) that money can buy and their job is to find the winners and not invest in the losers.
If you have family, friends or colleagues that want financial advice please ask them to contact us and we will work out how best to help.
