ASX Education: Exchange Traded Funds

Australian investors who want a diversified portfolio in a particular asset class without having to manage it themselves are able to Exchange Traded Funds (ETFs) on the ASX. ETFs are exchange traded on the ASX. That means you can buy and sell them on the ASX just like shares. They trade and settle in exactly…

The importance of knowing the unknown

ASX Education: Knowing the unknown

In order to make any money in the stock market you need to focus on the unknown and stop wasting your time on the known. Every year the top and bottom performing stocks are not the stocks the market predicts most accurately, those stocks will hardly move, the big money is always in the stocks…

The fight between shares and property

ASX Education: Property or Shares

THE DIFFERENCE BETWEEN EQUITIES AND PROPERTY I cannot tell you how many times I have read that you double your money in Australian property investment every ten years. It is the core assumption in all property marketing it seems. Of course to make any money out of that implied 7 per cent return per annum…

Active or Passive investing

ASX Education: Active v Passive

Much has been written recently about the relative merits of taking an active approach or just letting your funds track an index. The growth of passive funds has been extraordinary. The head of Vanguard in Australia was in the news last week as the FUM have grown to $5.4 trillion. $2.9 trillion is tracking indices…

Full service broker

ASX Education: Full Service Brokers

When I started broking in 1982 there were no personal computers let alone email or online broking. Everyone used full service broking because they had to. Now you don’t have to but the industry still exists and if you talk to most people about full service brokers they will immediately launch into the terrible experiences…

The importance of having a strong Self managed super fund (SMSF)

ASX Education: Do I need an SMSF?

Thanks to compulsory superannuation most people are invested in managed funds. You didn’t really make a choice to invest in managed funds but courtesy of the cozy relationship between employers and fund managers almost all of you tick that little box that says “put my super in your default fund” when you are employed. The…

The story of Ithaca

Stock Market Secrets: Ithaca

I wrote this article a few years ago and I reproduce it for my 50th Birthday.  Ithaca is the island in Greece that Odysseus had so much trouble returning to in Homer’s Odyssey. On his way he survives run ins with the Cicones, Polyphemus (Cyclops to you), Circe, the Sirens, Scylla, the winds of Aeolus,…

Buy and Sell Forex Trading

Stock Market Secrets: Forex Trading

YOU TOO CAN BE A FOREX TRADER So the $A goes through parity, in the other direction this time, and again every Tom Dick and Harry is suddenly a currency expert. The same thing happened when it first rose through parity in October 2010. It’s as if the Aussie dollar hitting the big figure miraculously…