Morning Report Monday 16 March 2015
I was at the gym early on Saturday morning, before coming into work when I started chatting to a friendly guy next to me. It turns out that literally this week, he has just sold his successful Barbers business after 20 years, to move into property sales and development. There is a saying in the stock market that when taxi drivers start talking about shares with you it’s time to sell up. I’m not saying for a moment that either property or shares are about to crash, but I do feel the “easy money has gone” and more prudent investing is required going forward to achieve healthy returns.The growing and very influential SMSF market has recently been pouring monies into Listed Investment Companies (LIC’s), creating a $28 billion industry. There has been a 23% increase in the number of LIC’s available to investors in 2014 alone, with a number of players considering listings in the future. Investing monies into a LIC removes the need to directly manage a portfolio, while importantly allowing access to healthy dividends. However, most LIC’s have enjoyed significant advances during the current bull market, hence I believe investors need a lot more thought than previously, prior to committing at current levels:
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