Most of us have seen ourselves as stock pickers extraordinaire at some point in our investing journeys. The idea of investing in stocks is exciting, seductive even. After all, all you need to do is press buy and sell online and you could make yourself a fortune.
Most of us have seen ourselves as stock pickers extraordinaire at some point in our investing journeys. The idea of investing in stocks is exciting, seductive even. After all, all you need to do is press buy and sell online and you could make yourself a fortune.
It’s easy to forget that sometimes small decisions can change our financial outcomes. Little investments today can compound to bigger ones tomorrow, and likewise, the investments we buy or sell today can make a difference at tax time too.
Australia’s stock market has a concentration problem: the top ten companies in the ASX 200 account for 48% of the entire index, with three of the top six names being banks and representing over a quarter of the index. Commonwealth Bank alone represents 11.3% of ASX 200. Think about that for a moment. One bank represents over a ninth of the index of Australia’s two hundred largest companies.
In a year where headlines have been dominated by tariffs, geopolitical activity and the ongoing AI boom – and there are queues for gold bullion snaking down Martin Place – it’s unsurprising that investors are following the money and using ETFs for swift access.
You may have come across the unique breed of individual known as a day trader in your travels. Their numbers have been on the rise for some time now, so much so that they’re reshaping the very architecture of markets along with the notion of price discovery. What was once the province of nimble derivatives players is now having systemic ramifications across global equity markets.
When you were attracted to the exciting world of investing, risk management probably wasn’t a primary drawcard. Worrying about all the things that could go wrong is at odds with the reasons most independent investors enjoy investing. Yet, the truth is it’s hard to succeed long term as an investor without mastering risk. So maybe it’s high time you turned this less-than-sexy skillset into an investment superpower.
If you’ve noticed a change in the way markets have been functioning in recent years, you’re not wrong. The exponential growth of U.S. money supply, fuelled by decades of deregulation, cheap debt, and increasingly aggressive central bank stimulus has arguably changed the very nature of investing.
Have you ever invested in a fund with the expectation that you’ll be able to sell your stake at a fair price, only to discover liquidity was non-existent when you eventually tried to sell? Welcome to the liquidity illusion, the time-worn tendency for investors to run for the exits at exactly the same moment only to discover the exit is closed.
Global bond markets are far from boring in 2025. The death of the ‘TINA’ era (‘There is No Alternative’ to Equities) is resulting in surging bond demand from institutional and superannuation investors, while the supply of primary local issuance is under strain.
There’s some sobering news to report. Despite being one of the world’s richest nations in personal wealth terms, Australia has slipped to 105th out of 145 countries in Harvard University’s Economic Complexity Index (ECI)
Tired of hearing about AI being the main investment game in town? That’s understandable. Since ChatGPT’s launch in 2022, the market has been somewhat obsessed with all things AI.