Your Wealth podcast episodes - nabtrade

Ever wondered why shares keep rising despite an increasingly troubled economic outlook? What do expressions like ‘don’t fight the Fed’ and ‘brrrr’ mean?

The end of the financial year is a great time to review your portfolio and ensure you are aware of the tax deductions and incentives that exist for your investments and your personal income. Many recent changes could offer benefits for certain taxpayers.

Small cap stocks have lagged large caps over the last twelve months, and are often forgotten as investors look to big names in times of trouble. Many Australian smaller companies have come to market seeking capital to ensure they can stay profitable post Covid19 and into a recovery.

With major Australian companies cutting and deferring dividends, investors relying on equities for income are facing a challenging year ahead. Martin Currie’s Australian equity team have crunched the numbers and estimate a cut of 40% in yield for the ASX200 in 2020.

Prior to the Covid19 crisis, the rise of China was one of the driving growth opportunities behind many Australian companies and global mega-caps (think Tencent and Alibaba). Yet many other emerging markets offer similar trends – technological prowess, an educated and increasingly wealthy middle class, and rapid urbanisation.

Precipitous falls on global markets have been followed by thrilling bounces, while economic data is weak and getting weaker. Australia has so far avoided the worst of the health crisis, but its economic fortunes appear much less optimistic, with predictions of recession and even depression. So are share markets looking complacent?

Despite the horrendous toll of Covid19 dominating the headlines, markets are showing surprising resilience following their initial sharp falls. Recent bounces have been some of the largest in history, illustrating the optimism of some market participants. So is all the bad news priced in?

Platinum’s Dr Bianca Ogden has a PhD in virology, and manages their Global Healthcare Fund. On this podcast, Platinum’s Julian McCormack told investors to take money off the table in 2019, saying sectors of the market were hugely overvalued. So what are they saying now?

Kochie has been a business journalist – and a business owner – covering economics and business for more than four decades. He’s seen – and survived - the Global Financial Crisis, the tech wreck, 1987’s Black Monday, the Asian Financial Crises and even the Gold Crisis of the late 1970s. So what can he tell us about how to survive as an investor and/or as a business owner about how to manage the coming weeks and months?

The ASX200 had its largest one day fall since the GFC this week, the S&P500 was closed to prevent a fall of more than 7% in a session, and record highs are a distant memory. Coronavirus and oil shocks are creating worldwide disruption and investors are fearing recession – or worse.

Thank you for your support, topic suggestions and listening in. To celebrate our 100th episode we've prepared a short video with some of the highlights from the past 100 episodes.

No one is born a great investor, and the process of learning about money and investing can be both rewarding and painful. So what do the pros wish they had known earlier, and which of their investments paid off most handsomely?

When searching for businesses that can generate excess returns on a sustainable basis, the concept of a moat can be invaluable. How wide is the barrier between you and your competitors, and can it be maintained.

It is said you can’t avoid death and taxes, but how do taxes affect your earnings, and what can you do about it? Listeners regularly ask us to discuss franking, the 45 day rule, deductions and other tax rules that affect how much of your investment returns you keep.

One of the questions we most frequently get asked is how to build an investment portfolio. If you’re just starting out, or you’ve decided to review your portfolio, what are the key principles you can use to build a suite of investments you’ll want to hold for the long term?

As we enter the 2020s, there are signs of the end of globalisation, trade liberalisation and capitalism as we know it. Critical technology and demographic trends will arise, presenting both opportunities and threats for your portfolio.

A dividend bonanza in early 2019 has rewarded many income investors, however some have hurt badly with unexpected dividend cuts from former blue chips. So how to manage an income-focussed equity portfolio?

One of the greatest challenges for any investor is determining the value of a company they wish to invest in – how good is the business model, and how much should you pay for it?

Australian retailers are currently recording some of their worst trading conditions on record, but are these challenges cyclical or structural? In other words, is the pain inflicted on your portfolio likely to be temporary, or permanent?

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The ASX has delivered over 18% calendar year to date, an exceptional result. So is there still value to be found in Australian equities, or should you look elsewhere for returns on your investments?

The ATO recently sent letters to 18,000 SMSF trustees with potentially inadequate diversification, which sent a lot of recipients and their advisers into a spin. So what is the ATO really looking for when they regulate the SMSF sector?

While the overall results looked mildly positive, there were some warning signs in the latest reporting season, for specific sectors and the outlook for the ASX in general.

With interest rates at unprecedented lows in Australia, the search for yield is pushing investors into new assets and asset structures to boost their income. Lower yields may result in higher risk strategies, however; how do investors avoid falling income along with falling rates?

We all know someone who has fallen victim to a scam – a phone call purporting to be from Telstra, a link supposedly from your bank, PayPal or the ATO. The world of scamming has become increasingly and terrifyingly sophisticated, and you’re at risk.

Chris Joye, AFR columnist and portfolio manager at Coolabah Capital, is a prolific and thought-provoking commentator on economic and credit topics; he also runs a number of credit strategies which are unlike the traditional buy-and-hold fixed income strategies most retail investors are generally familiar with. So is this area of credit for you, and how do you make room for it in a traditional portfolio?

Given its powers, it’s generally a good idea to understand the ATO’s views on how to manage your affairs – and comply with them. Thankfully with SMSFs, it’s not that hard, so long as you keep up to date.

Markets around the world have been rocked by Trump’s tariffs and concerns about Chinese retaliation. But how much does this really have to do with Australia? When two of our biggest trading partners start limiting trade, are we likely to win or lose?

Australian official interest rates are now at 1%, and markets predict them to go lower. While this is a first for Australia, other developed countries have lived with zero or even negative interest rates for a decade now (much longer in the case of Japan). So how can investors respond to this environment?

Despite the numbers and the headlines, markets are simply comprised of individual buyers and sellers making decisions about where to place their money. The choice to buy or sell a stock can be as much an emotional one as a rational one, and the ability to manage our feelings can greatly improve our financial outcomes.

While Australia’s tech darlings have achieved spectacular share price growth, the global tech behemoths continue to dominate markets. These ‘growth’ companies are trading on eye watering multiples in many cases, while less glamorous companies languish on valuations well below their long run averages. The divergence in valuation between growth and value stocks has not been this great since 1999.

Disruption has affected most industries and fortunes are made and lost where investors are most able to position themselves for trends and themes that shape our world. This year’s Kanga conference hosts a line-up of professionals who are thinking about investing in the future.

Disruption has affected most industries and fortunes are made and lost where investors are most able to position themselves for trends and themes that shape our world. This year’s Kanga conference hosts a line-up of professionals who are thinking about investing in the future.

Many investors are reluctant to enter the share market despite higher potential returns than other assets due to their lack of knowledge and experience. If you’re one of them, you’re probably asking yourself: where to start, how much money is needed and what to buy.

Whether you rolled over your super fund or have excess cash available, the big question is: how to invest your next dollar? The question is especially pertinent for investors who experienced poor returns from assets they had little knowledge of during the global financial crisis.

While the resources boom that saved Australia from the GFC may have subsided, there is no question that global demand for Australian resources will continue. Trends can be tricky though; those who joined the lithium bandwagon have experienced a wild ride.

Most Australians are surprised - even shocked -to discover that their superannuation is not covered by their Will, and decisions about who receives it upon death can be made by a trustee whom they’ve never met. Given super is often a person’s largest financial asset, investing a little bit of time to ensure it goes to those you love can be critical.

ETFs now account for a substantial proportion of daily turnover on the ASX and are often the first investment for investors looking for exposure to the sharemarket or a new sector.

Ever wondered what it would be like to throw in your day job and trade full time? Ten years ago, Lucio Conte left his job and spent the last decade making a successful living trading domestic and international shares.

As InvestSmart portfolio manager Nathan Bell explains, ethical investing is not hugging trees while your returns blow in the wind. It makes good financial sense to avoid harmful industries, and he’s got the stock picks and numbers to prove it.

Ensuring your loved ones are taken care of and your assets go to your intended beneficiaries is not as simple as downloading an online Will kit. Failing to get it right can cause additional grief and considerable cost to your loved ones once you’re gone, even if you feel you have very little to leave.

Scott Phillips from the Motley Fool gives his thoughts on Australia’s tech darlings, the WAAAX stocks. Can they continue to deliver great outcomes for shareholders and customers, or will they inevitably succumb to the powers of gravity?

The WAAAX group of companies, Australia’s answer to the US’ FAANG megacaps, has had a stellar run in 2019. With valuations far exceeding other sectors on the ASX, however, have you missed the easy gains or is there still more upside?

An inversion in the yield curve is one of the most respected predictors of a forthcoming recession - the last time it occurred was in 2006. Now the yield curve has inverted again; what does this mean for your portfolio?

With an election looming and both parties seeking to win swinging voters, the key financial policies of the Opposition are as relevant to investors as those of the current Government.

We discuss key Budget proposals at length and what they could mean for you.

With many large cap sectors under pressure or fully valued, investors seek growth potential in small and micro-cap stocks. With this end of the market less well researched and therefore subject to less scrutiny, how does one avoid the blow ups and seek out the next big thing?

There has been recent commentary on the quality of global credit currently being issued and the risks involved, with fears that GFC-like mistakes may be repeated. Other concerns include the spectacular rise of passively managed bond portfolios and fears of a vicious cycle should the market turn.

Residential property remains the asset class that most Australians aspire to own, both as owner occupiers and investors. After five years of astonishing growth in our largest cities, house prices are falling in some areas, with potential consequences for the wider economy.

Recently investors have started looking toward the Asian tech giants such as Tencent, Alibaba and Baidu for diversification and growth opportunities. So which region holds the greatest opportunity for investors?

This time last year, we spoke to NAB’s head of FX Strategy, Ray Attrill who forecasted the movement of the AUD for 2018. If we revisit that episode, we can’t help but notice his predictions were fairly accurate. In this much needed follow up episode, Ray looks at the outlook of the AUD.

In last week’s episode, retirement researcher and strategist Phil Augustine outlined the four pillars that contribute to retirement happiness for most Australians. In this follow up, Phil outlines key strategies to improve your retirement health and happiness.

While many of us dream for decades of riding off into the sunset, research shows that many find the transition to retirement much more difficult than they anticipated. Drawing on hundreds of interviews, and thousands of pages of research, MLC Retirement Expert Phil Augustine believes a successful retirement boils down to four key things.

We’ve recently received a number of enquiries about an asset class that rarely receives any attention from investors – yet its total market value substantially exceeds the equity market. It’s one that pays you an agreed interest rate for a set period of time when you lend your money to the Government or a company. Bonds.

After years of relatively low volatility, market gyrations took many investors by surprise in 2018. As Fidelity International’s Managing Director, Australia Alva Devoy explains, this is really a return to more normal market conditions, presenting both challenges and opportunities for investors.

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The outlook for US equities looks more uncertain in 2019 than it has in many years, with the withdrawal of supportive monetary policy and political tensions creating a perfect environment for increased volatility. With US stocks having delivered years of strong returns post the GFC, many are wondering whether the party can continue, or whether it’s time to pack up and go home.

Some investors have sold off parts of their portfolio and changed their asset allocation under the assumption that the Opposition’s policy proposals have been implemented. However, this is not the case and frankly, any announcements could take a while to reach implementation.

Many see the healthcare sector as providing ideal defensive exposure and yet some of Australia’s best growth stocks reside in this sector. As Australia’s best rated healthcare analyst, Andrew Goodsall from MST Marquee, explains, healthcare offers a wide range of fascinating and complex opportunities, from private hospitals and insurance to world class medical device manufacturers.

S&P Dow Jones Indices Managing Director and Head of Global Index Investing Craig Lazzara, has dedicated his career to researching whether fund managers can consistently outperform their respective benchmarks. He and many researchers with nearly a century of studying the topic, conclude that is it not often, and not for long.

One of the greatest concerns for Australian investors looking to invest offshore is the impact of currency on the value of their portfolios. Magellan Asset Management Portfolio Manager Chris Wheldon offers his insights into strategies to manage currency risk and his thoughts on hedging in the current market.

At the ASX’s recent Investor Day, nabtrade’s Gemma Dale shared with attendees what other investors are holding in their portfolios, and what they’re buying now, both domestically and abroad. This episode is designed to show how today’s smart investor can tap into high-performing overseas markets, invest in top stocks and achieve quality portfolio diversification without leaving the ASX.

Superannuation is likely to be your second largest asset after your home, so it should be an important part of your planning, but for most people it rarely rates a mention until they’re just a few years off retirement.

With a technical correction in market values occurring in October, many investors are wondering whether it is time to snap up bargains… or wait on the sidelines for fear of further price falls.

You may have been told; never invest in anything that eats or that you can eat. Mark Todd thinks otherwise.

Warrants are a product structure that have been around for a long time but very few know about them and how they could be used as tool to manage portfolio risk.

With both the ASX200 and the tech-heavy Nasdaq having dropped 8% from their August highs, many investors are asking if recent market falls are the beginning of the end for the longest bull market in history. Rising US interest rates, a resurgent US dollar, stretched valuations and potential trade wars all loom as potential catalysts for a correction.

The ASX offers investors many types of instrument through which to build a diversified portfolio, but how do they differ, and which is best for your needs?

Trust in financial advisers is at an all-time low, and yet good quality financial advice can be the difference between a secure future and constant struggle.

India is the world’s third largest economy in purchasing power parity (PPP) terms. It has the best performing stock market in the world over the last 5 and 20 years and generates GDP growth of 7.4% pa. Yet, it does not feature in the MSCI World Index, and has only a 10% weighting in the MSCI Asia. Most investors, consequently, have little to no exposure to this powerhouse economy.

The dynamic of investment markets has been highly disrupted over the past two decades, with technology companies now making up 7 of the top 10 companies in the world ($ market capitalisation). Now that these disruptors have climbed to the top of the ladder, how do investors pick tomorrow’s winner?

Sky Business and podcast favourite Mark Todd recently hosted the Kanga Conference: Fixed Income Beyond the Institutional Sector. This summit brought together senior Treasury executives, fund managers and investors to discuss key developments in fixed income and equity markets across the globe.

Self-managed superannuation funds make up 30% of the $2.3 trillion total superannuation pool and there are more than 1.1 million SMSF members, according to the Australian Taxation Office. From gearing to renting out vintage wedding cars, SMSFs offer investors the ability to deploy a wide variety of investment strategies and the structure provides various tax and other benefits. However, investors need to understand the complexities and obligations involved in running a SMSF.

With the Asian region expected to host 4 of the world’s 5 largest economies in less than 12 years, investors are starting to take note of our northern neighbours. Despite the fierce growth and positive demographics of the Asian region, global indices under-represent its key markets, and most Australian investors have little to no exposure at all.

Former Financial Review journalist Bianca Hartge-Hazelman created the Women’s Index in 2017 to track women’s financial progress over time – the wage gap, tertiary enrolments, board representation and more. The data isn’t positive – in one telling statistic, women in Australia retire with just 73% the superannuation balance of men, despite living an average of four years longer.

The growth of technology stocks over the last decade has completely reshaped investment markets, and investor returns - the technology-based NASDAQ index is up an astonishing 240% over 10 years, while the tech-lite ASX200 still languishes below its pre GFC highs. The technology sector itself, however, is diverse and complex, ranging from producers of core components to disruptive innovators.

With the official cash rate at just 1.5% for the past two years, many Australians have become used to historically low rates on their mortgages – and their deposits. In addition, at the peak, 40% of all home lending in Australia was originated on interest only terms. Warnings of rising rates may feel overblown as the RBA maintains a neutral stance, and yet the funding pressures on lenders are increasing. So what does this mean for your portfolio?

In a recent podcast, a respected investment strategist said that increasing downside risks were forcing him to allocate a proportion of his investment portfolio to gold – and he hates gold! So what can precious metals offer your portfolio?

Appetite for ethical and sustainable investments has increased dramatically in recent years, as investors increasingly seek to avoid harmful corporate behaviour and support positive industries such as renewable energy and green alternatives to traditional waste management.

Most investors understand the principle that diversification reduces risk and potentially improves returns in a well-constructed investment portfolio. Yet when the whole of Asia ex-Japan represents approximately 2% of the MSCI World Index (according to MSCI data as at June 2018), are they really getting access to the opportunities they’re looking for?

Small and mid-cap companies are often overlooked by investors, as the information available to assist with investment decisions, can often be harder to find when compared with those companies in the ASX top 50. Yet many small and mid-cap stocks offer long-term growth opportunities that may exceed the mature investments that dominate investor portfolios.

US markets have rallied strongly in recent years, shrugging off concerns about over-valuation and stretched fundamentals. The US economy is showing strong signs of growth also, buoyed by a decade-long period of low interest rates, huge tax cuts and Trump’s protectionist policy announcements. So are all lights turning green? Or will tapering and tariffs present headwinds that clash with tailwinds from Republican fiscal policy?

Investors have generally been rewarded for holding – and sticking with – growth stocks throughout FY18, with the ASX delivering another year of strong portfolio returns. Many valuations look stretched, however, and headwinds are facing many popular stocks and sectors.

The collapse of Lehman Brothers in 2008 is often seen as the catalyst for the Global Financial Crisis, which wiped trillions of dollars from global markets and shook confidence in financial systems across the world. According to veteran investor and commentator Graham Hand, the GFC actually started a year earlier in the global credit markets, but the equity markets ignored it. With hindsight, everyone had the chance to exit shares at elevated prices with plenty of notice, as the credit markets were screaming for all to see, in every part of the world.

End of financial year is a common time for people to think about gearing – the potential deductibility of a year’s worth of interest cost can reduce your tax while borrowing to invest can boost your returns. This strategy is not without risk, however, and understanding the implications of both the strategy and the structures you use to implement it is critical.

The end of the financial year offers an ideal opportunity to review your financial position, and to take advantage of tax concessions and strategies that are offered to help you grow and protect your wealth. This year offers significant new benefits for many investors, as well as pitfalls to avoid, so the time to prepare is now.

With a decade of record-low interest rates, retail investors have previously steered away from the bond market and have focused their capital on equity markets. Now that the Federal Reserve has announced a rise in rates, should we be worried? Considering the current level of global household debt, a small rise in rates could have a dramatic impact on the Australian and global economies.

With capital city house prices having doubled in the last five years, many parents despair of their children ever being able to afford their first home, and wonder if they should be reaching into their own pockets to help. According to Digital Finance Analytics, the ‘Bank of Mum and Dad’ is providing up to $85,000 each to nearly 56% of first home buyers, and most of those buyers are already in their thirties.

Treasurer Scott Morrison’s third budget features personal tax cuts as one of the Government’s core measures. Gemma Dale, discusses the key takeaways from the Budget announcement and specifically takes a deep dive into the proposed changes to the taxation, superannuation and pension systems.

Treasurer Scott Morrison’s third budget features personal tax cuts as one of the Government’s core measures. Gemma Dale, discusses the key takeaways from the Budget announcement and specifically takes a deep dive into the proposed changes to the taxation, superannuation and pension systems.

In part 1 of this must-listen podcast, renowned finance expert Paul Clitheroe, Chair of InvestSmart and the Government’s Financial Literacy Board, outlined the critical steps for creating your own financial plan – and achieving your goal of financial independence. In part 2 of this two part series, Paul goes further to explain some of the critical concepts of building wealth.

Most Australians know that a good financial plan will set them up for the life they dream of, but are nervous about seeking advice from a financial planner. Renowned finance expert Paul Clitheroe, Chair of InvestSmart and the Government’s Financial Literacy Board, is passionate about helping all Australians reach their financial goals – the smart way.

In this podcast, leading SMSF expert Meg Heffron discusses many of the issues you can and should consider if you want to use your super to borrow.

The U.S. argues that trade barriers are warranted in order to reduce its deficits against its trading partners as well as to protect American jobs and intellectual property. However, the risk is that as other countries retaliate against tariffs, there could be unintended consequences for various industries and workers and global growth is impacted.

While many of us long for leisurely days playing golf and gardening, or perhaps travelling the world, the reality of retirement presents many challenges for older Australians. Making your savings last a lifetime is a tricky proposition, and both spending too much, and too little, during this stage of life can hugely affect the quality of your post working life.

While many of us long for leisurely days playing golf and gardening, or perhaps travelling the world, the reality of retirement presents many challenges for older Australians. Making your savings last a lifetime is a tricky proposition, and both spending too much, and too little, during this stage of life can hugely affect the quality of your post working life.

In early 2018, US equity markets had reached their highest levels on record, the ASX had shrugged off the shroud of the 5000s and volatility was at all-time lows. Yet for those who closely watch Treasury markets and geopolitics, there was great uncertainty unheeded by exuberant equity investors.

Welcome to Your Wealth. In our pilot episode, we look at strategies to save for your children’s education expenses – a serious topic for many parents and grandparents with young kids. I interview finance expert Katie Whiffen about when to start saving, how much you need, saving vs investing and whether borrowing can help.