Opinion

To make advice work, advisers need to home in on the centre of their business proposition, sometimes at the expense of their better intentions.

The recent underappreciation of value stocks has made them an attractive proposition, but knowing the most important metrics to look at when appraising companies is crucial.

For the last decade, equities (repackaged and otherwise) have reigned supreme. But in a market where everything might soon start to break, investors have to be more nimble.

Even with a lightened agenda, the government failed to finish its homework and instead delivered only a portion of the first tranche of advice reforms. It’s a poor return, and at this rate the advice review could be a ten-year project.

The Australian stock market has seen a stagnation in returns since 2006, leaving many questioning the wisdom of long-term equity positions. For retirees, it’s a particularly fraught issue, as their financial security depends on how these investments perform.

The meteoric rise of industry funds has earned them a rightful place at the top of the superannuation food chain. But their standing is not a given, and the failures are starting to mount.

Technology stock valuations are rising, bucking the prevailing market conditions and further inverting the traditional bond/equities relationship. “This shouldn’t be happening”, says Ruffer’s Steve Russell.

Diligence and frugality can lead to wonderful retirement outcomes, writes Alteris Financial Group senior adviser Jaxon King. But if the journey to retirement is bleak, it could sap the joy out of reaching the destination.

Events like the Israel-Palestine and Russia-Ukraine conflicts may shock the world, and they may even influence markets. But history tells us geopolitical risks are always present, mostly factored in, and should never predicate panic selling.

The aggressive sell off in US bonds has prompted many to speculate that interest rates have adjusted upwards on a structural basis. But Ninety One investment strategist Russell Silbertson takes a different view.

Repeating his warning that markets are undergoing a “sea change” that will see a new set of winners and losers emerge in short order, the famed distressed-debt investor said it’s time to consider a profound shift from asset ownership to lending and credit.

Investors have a lot to gain from identifying the risks and opportunities present in the management of human capital. Productivity demands innovation, says Ruffer, and the companies that understand this will thrive.