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Eureka Report Archive 
Eureka Report Articles 2008 Archive

22/12/2008 - Storm's doomed model - At its core the Storm Financial model relied on an ever-rising sharemarket. Its crisis has wounded the advice industry as well as clients.

 

12/12/2008 - A fatally flawed model - Storm Financial grew quickly with its high gearing model, but has been hit hard by the sharemarket fall.

 

01/12/2008 - Double or nothing - There are strong opportunities for investors, particularly those with a time frame of at least 10 years.

05/11/2008 - Warren Buffett's textbook on investing ... and life - The Snowball, a biography of Warren Buffett, is a very readable account of his philosophies and contains lessons for all investors.

24/10/2008 - Last rites for mortgage funds? - Investors can get better returns from cash in government-guaranteed bank accounts, leaving riskier mortgage funds with a problem.

 

20/10/2008 - Financial planning's big six - From regular investing to paying off debt, there are six basic elements of a financial planning strategy all investors should consider.

 

08/10/2008 - Yields the new king? - One big rate cut, and the possibility of more, take cash rates below yields on shares.

06/10/2008 - Inside the Future Fund - Like SMSFs, the Future Fund is investing to provide retirement income. Unlike most SMSFs, a big slice of its portfolio is in global shares.

29/09/2008 - LICs show their mettle - Market participants expect listed investment companies to continue the outperformance they have shown in the past 12 months.

08/09/2008 - 'What price Wesfarmers?' - Depending on the research, the true value of Wesfarmers shares is above $46 or below $23. The market says $31, which seems fair.

 

03/09/2008 - 'Losing your money, for a fee' - Performance data shows that managed funds failed to protect investors from the market downturn.

29/08/2008 - 'Rate cut the short-priced favourite' - Backing a 0.25% rate cut on Tuesday could make punters and instant, tax-free 12%.

 

27/08/2008 - 'Is share gearing worth it?' - A geared share portfolio will increase returns, but at the risk of much greater volatility.

 

18/08/2008 - 'Emerging markets via the ASX' - The iShares EM exchange traded fund offers investors access to the potential long-term outperformance of emerging markets.

 

13/08/2008 - 'Reply to letter of the week' - Scott replies to a letter written by a subscriber to the Eueka Report based on Scott's What price index funds? article.  The letter and reply were both published in the Eureka Report.

 

04/08/2008 - 'A popular way to lose money' - With a portfolio similar to the index, but higher fees than index funds, Colonial First State Imputation Fund stumbles on its promise to make money for investors.

01/08/2008 - 'The IPO that died of shame' - The BrisConnections tollway float destroyed about $250 million of investor wealth - a similar amount to the Fincorp and Westpoint collapses.

 

30/07/2008 - 'What price index funds?' - In a volatile market that is really tough for a stock picker to beat, index funds are a relatively tax-effective, low-cost investment option.

 

21/07/2008 - 'Tollway float not hazard-free' - Despite the high yield, BrisConnections' lack of a track record makes it difficult to evaluate. Brisbane's other tollway, RiverCity, is trading well below its issue price.

 

09/07/2008 - 'Bearing Up' - The bears are wrong when they forecast another 30 per cent drop in the ASX 200 - but if it happens, it will be the opportunity of a lifetime.

 

04/07/2008 - 'Timbercorp return comes with risk' - The lack of a credit rating and a difficult operating environment mean the return on Timbercorp's bond does come with some risk.

 

26/06/2008 - 'Reply to letter of the week' - Scott replies to a letter written by a subscriber to the Eueka Report based on Scott's Credit crunch's silver lining article.  The letter and reply were both published in the Eureka Report.

 

20/06/2008 - 'Suncorp offering with a bonus' - Suncorp's convertible preference shares, offering an 11.8% fully franked yield, a reward that seems reasonable compensation for the risk.

 

18/06/2008 - 'Credit crunch's silver lining' - Fixed interest investments offering strong returns provide a defensive core to a portfolio. But watch managers' fees and tax implications.

 

02/06/2008 - 'Gateway: Enter with caution' - A capital guarantee makes products more attractive to "volatility shy" investors. Macquarie's MQ Gateway has such a guarantee but is very complex.

 

14/05/2008 - '2008 Budget: Salary Sacrifice Rethink' - Salary sacrificing is an important personal finance strategy for most people, but last night's budget will see areas of that strategy having to be rethought.

 

12/05/2008 - 'Bookmakers Caught by MFS' - Its investment in MFS was classed as low-risk, but the truth was otherwise and could bring NSW Bookmakers Super's first loss in its 30 year history.

 

16/04/2008 - 'Prickly Hedges' - If you are relying on a multi asset class fund manager, you need to be aware of - and comfortable with - how they are managing your underlying portfolio.

 

07/04/2008 - 'Margin loan? Think again' - Investing regularly in growth assets is a powerful and simple wealth-creation strategy free of the risks of margin lending.

 

26/03/2008 - 'Can market 'dogs' outrun the rest?' - Maintaining a portfolio of the market's 10 highest-paying value stocks can offer outperformance; it can also be very volatile.

 

10/03/2008 - 'When it pays to reinvest' - In deciding whether to reinvest distributions, it pays to understand the difference between income and taxable capital gains.

 

03/03/2008 - 'Buffett's Sobering Lesson' - In his latest letter to shareholders, Warren Buffett dispels the notion that house prices and sharemarkets can rise forever.

 

25/02/2008 - 'The money or the stocks?' - Offers to be given more shares in place of dividends might be tempting, but investors need to weigh up the arguments for and against.

 

18/02/2008 - 'Tap your super, but by how much?' - Two US studies offer a guide to the rate super can be tapped, to maintain an income during retirement.

 

04/02/2008 - 'LICs slower, rougher ride' - Many listed investment companies trailed the market average in 2007, and did not reward investors for increased volatility.

 

30/01/2008 - 'Reality check for share bears' - An extended period of poor returns on UK and US markets means returning to normal would actually bring an improvement.

 

23/01/2008 - 'Better Than Cash' - A brief discussion of Listed Property Trust yields in the context of recent market falls.