Investment Research
We have attached below a library of websites and articles which have influenced the strategies we recommend to our clients. Please take the time to read those articles of interest to you as they will help you better understand your finances. Please feel free to discuss these articles with us at any time.
The library will be expanded over time.
Sticking with Quality - Interview with Robert Hook, Manager of SGH20
This article, written by Michael Pascoe, is a discussion of the portfolio and relative performance over the past 12 months. The SGH20 portfolio is a recommended investment of Absolute Financial and held within some client portfolios.
TARP Refund a Further Positive - Royal Bank of Scotland (ABN AMRO)
The author views the part repayment of the "Troubled Asset Relief Program" (TARP) loans signals that the worst of the financial crisis may be past us and that the key focus for equities should be the global recession.
BT Market Perspective Presentation
This presentation illustrates the different in volatility and returns of short term and long term investors.
ABN AMRO - Australia Strategy 14th January 2009
We referred to this article in our Investment Strategy Summary (19/01/2009). The Australia Strategy section provides a detailed summary of how Fiscal (Government Spending) and Monetary (Interest Rates) efforts could affect the domestic economy and equity markets in 2009.
Looking Beyond the Uncertainty
This is a short article produced by Macquarie discussing investment strategies in times of market volatility.
Determining Withdrawal Rates Using Historical Data by William Bengen
This article uses historical investment data (US based) to determine prudent withdrawal rates from retirement investment portfolios so that the portfolio has a high probability of funding a retirement period of at least 30 years. The conclusions are:
- (a) withdrawals of 4% pa indexed at inflation is a prudent withdrawal strategy
- (b) the optimal portfolio allocation was 50% - 25% Defensive Assets (Cash and Fixed Interest) and 50% - 75% of equities (we now believe this to represent a diversified portfolio of growth assets including Australian and International Equities, Property and Alternative Assets).
Emotions felt when Investing
This illustration provides a snapshot of the array of emotions that investors can feel as markets move between periods of rising and falling markets. Interestingly the point of maximum risk in a portfolio coincides with the time when investors feel the best about their portfolio, conversely the point of maximum opportunity is at the point when you are feeling the worst.
Warren Buffett - Buy American - I am
This is a letter from Warren Buffett asvising readers that he has begun to purchase American Equities on his personal account. He makes the point that he can not predict short-term movements of the stock market. He also states "what is likely, however, is that the market will move higher, perhaps substantially so, well before either sentiment or the economy turns up". This is also reaffirmed by another article "Buying Low, Selling High not always the answer".
Buying low, selling high not always the answer SMH 18th October 2008
This article from the SMH examines the stock market gains in the 12 months following market corrections. The article shows historical market returns of between 20% - 60% in the 12 months following a market correction.