This week Joel and Louis give us a financial updated before releasing the UGC financial report. The Australian equity market finished in negative territory, the ASX400 down by 0.4%. The ASX200 has had a decent run for the year set for the best year to date performance. The total return for this year is 22%, coming off the back of a poor performance last year.

We are seeing encouraging signs across most equity markets. All 3 major stock indexes break out fresh all-time highs. The S&P500, Nasdaq and Dow Jones have all broken out to a new all-time high. While we are getting a break out there is more work to do. 

In other financial news, of the nine IPO’s that have come out over the last 12 months including Snapchat, Dropbox, Pivitol, Pinterest, Ebay, Lift, Spotify, Survey Monkey and Clouded, all but 2 of them are higher than their closing price on the day they listed 24 months later. I fact four of them are down by more than 30%.

Listen in for more insightful news.

This Week’s Investor Exchange Round Table Covered:

Joel discusses the latest article from the financial review by Jones Lang Laselle. They are on record in the latest third-quarter market report stating that they expect to see a supply shortage of apartments which is not where we have been for 5-6 years. The total number of new apartments being marketed dropped 72% from the national peak 34,488 in 2017 down to 9565

Last week Louis talked about what it is that is holding you back from succeeding financially. What is your money blueprint? What did you observe or experience in your early family life that could be impacting on your money blueprint? For example, if you grew up in a family with a seasonal income, such as a farm or property you may have experienced high financial times with the best of the best and then experienced great financial stress. This could be impacting on your current financial behaviors.

It is important to look for these patterns that could be being driven by these early examples(18.22)

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This week Joel, Brett and Louis discuss the continual break in the Initial Public Offering (IPO) market. Recently KKR group tried to bring another company to Australia but failed. Other failures include Retail Zoo, Betty’s Burger and Boost Juice. What happened is the brokers acting for the sellers have not been able to find enough interest at the price the vendors were looking for. The valuations seem to be priced too high, burning potential investors.

Zoom and Beyond Meat were priced at 80 times the sales. The stocks are now down 35% over the last few months, a good thing for sustainable cheaper shares.

Joel shared the latest statistical update on the top 1% of the wealthy population. the top 1% have continued to get wealthier. The top 1% are now 35% wealthier than they were in 2011. In the US if you are earning over 515,000 per annum you considered part of the 1%. In Australia to be part of the top 1% you need to earn 351,000 a year. The ABS have put out some further stats on what qualities the top 1% have.

Listen in to find out more.

This Week’s Investor Exchange Round Table Covered:

Louis talks about the things that can hold us back. When we make a decision we consider what we might lose and on the flip side what we might gain. Louis encourages you to consider what you might lose after you gain. In other words, what is holding you back from succeeding that is self-sabotaging? Consider what you need to let go of in order to make a decision to succeed. (20.55)

Brett discusses the current state of the housing market. The current data is supporting a trend upwards in Australian property prices. There has been an 11.6% accumulative growth ending in August. The value of investment home loan commitments has increased by 19.1% (31.23).

You Cannot Be Serious:

In Port Lincoln a property recently sold for just $97,000, a loss of $70,000 on the previous sale of the property. 

A copycat poo jogger was recently caught in Sydney. Unfortunately for the poo jogger they happened to be relieving themselves in front of a very famous socialite, Roxy Jejernko who made big news of the issue.

A man took to the internet to check if he had behaved badly. His girlfriend frequently complained of being scared of walking an hour home from the station in the dark. To cure her fear he decided to hide in the bushes and jump out and scare her. The internet agreed, this was not great behavior.

A new study of the stock market has shown that the reaction to forecasts by analysts is directly correlated to their surname. Following 911 in the US, forecasts delivered by analysts with middle eatser surnames were negatively received. The same applies following the french and german government’s opposition to the US-led Iraq war – us market reactions weakened with people with french or german surnames

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This week Joel, Brett, and Louis discuss the major changes in the banking industry. The recent introduction of Osko has highlighted the technology reform that has occurred in the banking industry and the impact these changes will have in the coming years. In the last decade, the major banks have overhauled core systems, however, the tools used to communicate between the banks have remained the same. These tools, Bpay electronics transfer (EFT), real-time gross settlements, swift etc have all been limited in terms of communication between banks

In the last few years, these tools have been under development and most recently released to the major banks. Osko is a payment tool that allows for real time instant communication between all of the major banks. A payment from one bank to another will be transferred in an instant. What impact will this have to Crypto Currency, when its major value proposition was an instant transfer?

Other key changes, neo banks, and open banking are set to shake up the banking industry. Listen to the podcast to hear more.

This Week’s Investor Exchange Round Table Covered:

Brett looks at a high-level comparison of investments. A recent Vanguard report on diversification reviews 30 years of data, dating back to 1990. The report highlights the best and worst of a number of asset classes and the avg comparable return. The highest average return was US shares with 11.8%, the next two highest was the Australian and US international listed property (10.6%), followed by Australian shares (10%). Do you know the single highest return at 57.5%? Listen in to find out. (25.04)

Joel discusses the fractured state of the IPO, impacted by the controversy surrounding Wework. Yesterday we found out the Latitude finance failed to get its second attempt at the IPO with what appears to be an attractive deal. This may be as a result of the fear amongst private investors of private equity firms overselling poor-performing entries (38.14).

You Cannot Be Serious:

An unlucky UK teenager drove 160kms to a music festival. He decided to find the closest parking spot in a side street and catch a taxi the remaining 10 kms. After having a great time at the festival he headed back to his car to discover he had no idea where his car was. Unable to locate it, he had to catch a taxi the 160kms home. 2 weeks later he is yet to find it!

A lady in Pittsburgh went to drive her car, unable to start it, she opened the hood and found a clever little squirrel had been storing it’s nuts. In fact, when she opened the hood 200 nuts came out. On further inspection they discovered nuts in the engine, over 50 more nuts were safely stored in the engine casing

Ironically the annual conference held by the intergovernmental council on climate change in dis attended every year by more politicians traveling in more than 1300 and 1700 private jets!

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This week Joel discusses the 40 billion dollar ASX fall last week and what it means for the market.  The media hype has people concerned however according to the statistics over the last 70 years, there is always a dip at this time of year. Since 1937 the avg September performance of the US S&P500 index is actually a 1% decline.

In fact, the statistics show an actually bullish time, with a report by LPL research indicating that the past 15 times the S&P lost growth in August, the rest of the year saw positive results every single time. October tends to be when the market bottoms out.

There are many headlines causing concern in the markets, the impeachment of Donald Trump, the US has launched tariffs on the EU, the trade spat with US and EU on airplane tariffs and whiskey, rising unrest in Japan, one of the worlds largest financial sectors. 

Listen to the podcast to answer the question: are these events going to be the catalyst for a major market decline?

This Week’s Investor Exchange Round Table Covered:

Brett looks at the latest interest rate cuts and the impact on the market. The RBA announced a new record low-interest rate of 0.75%. This is the first time it has been under 1% and the twelve consecutive rate cut since 2010. The banks have now confirmed if they will pass on the new interest rates to their customers(12.30)

Brett continues with more data on the bounce-back of the property market. While there has been a decline across all states over the last 12 months, if you look at the past 5 years there have been large increases with as high as 38% in Hobart and 26% in Melbourne. Listen in for the latest house price mediums for each state (26.25).

Louie discusses “how to think like a good financial advisor”. A good financial advisor will start by looking at your financial resources and what capacity you have to invest, what does the end game look like, and projecting it forward. A good financial planner has removed the risks associated with investing so there is no logical reason not to proceed with the plan. However, in many cases it comes down to how comfortable a person is emotionally.

You Cannot Be Serious:

You may have heard of swimming with the sharks but what about entering the lion’s den? A lady at New York zoo thought it was a good idea to enter the lion’s den. She danced, clapped and sang with the Lion watching on. Luckily there was a 14-foot moat between them and she walked away unharmed.

A person in Florida tried to fix his own clothes dryer only to discover the issue was a trapped snake! The man started to pull the dryer apart and discovered a snake trapped in the air filter. When he reached in to remove an obstruction he felt something moving, he had managed to create a gap for the snake and it slithered away.

A swiss tourist visiting Disneyland decided to make the place a little happier by taking LSD before visiting the park. After disappearing he sparked a 130 people search party to find him as the park closed. He was discovered a mile away naked and covered in scratches with no memory of what happened. 

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This week Brett presents the findings from a recent report of the most liveable cities in Australia. The report is an important potential indicator of housing prices to watch out for across the country. And while Melbourne is considered only second to Vienna in the world ranking, we came in 4th in a study conducted in Australia.

The study considered a small selection of the population (10,000) and ranked regions into the most liveable region for metropolitan and the most liveable region for regional areas of Australia.

The study was based on key attributes including, safety, high-quality health services, job prospects, affordable housing, and reliable public transport. The result ranked inner Perth as the most livable metropolitan region and Warrnambool (In Victoria) as the most liveable regional area.  Melbourne inner south came in 4th in the metropolitan rankings, behind Adelaide Hills and Sydney’s eastern suburbs. 

Typically liveable areas with these ratings should translate to an increase in property prices. Listen to find out which other regions made the rankings.

This Week’s Investor Exchange Round Table Covered:

Louis talks about how people at the top of their game, stay at the top. Top AFL clubs have a recent tendency towards consistent performance and it is similar in terms of personal finance. In order to stay at peak performance levels, he suggested that developing habits can eliminate the need for motivation and willpower. To form a habit you need the right environment and the right ritual. (16.10)

Joel provides an interesting report on the current remuneration trends for 2018/19. Reporting that CEO of Latitude finance, Ahmed Fahourhas negotiated a whopping 22 million dollar bonus and a 4.4 million dollar annual salary. Joel compared this with US executives which peak at 2.6 billion dollars for Elon Musk (whose company is currently being sued by a shareholder for inappropriate conduct for the remuneration paid to Elon.  (28.10)

You Cannot Be Serious:

A German court made a landmark ruling that officially recognises a hangover as an illness. On the back of a company taken to court over claims their product cured hangovers, the court ruling resulted in declaring hangovers an illness to prove that the claims by the company were in fact against the law

A broken-hearted 19-year-old living in an apartment decided to burn the love letters on the lounge room floor and then went to sleep leaving the love letters to burn. The fire department was called but no major damage

Proving hair loss is a serious business, a wigs trader in the US declared they had lost $80,000 in wig merchandise in a robbery.

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The issue of performance enhancing drugs in sport has recently been highlighted in the media. Some athletes look for the quick fix to achieve their goals, and it is no different in the world of finance.

This week Louis kicked off the discussion with the topic, ”In finance, what are the methods that people talk about to try and get ahead that actually lead to disaster?”

In finance, the equivalent of a “performance enhancing drug” could mean a promise of getting ahead without the fundamentals. They might be performance enhancing but if you get caught doing it or if certain things happen you could lose everything.

Spruikers can often be found delivering finance versions of performance enhancing drugs. The quick fix remedy that promises big returns. So, how do you identify a spruiker and how do you determine if the offering is legitimate?

There are four elements to look out for 1. If it only considers one factor without the fundamentals (e.g. guaranteed to work, get rich quick). 2. Are you being presented with only one option. 3. If there is no independent umpire or the ability to consider someone outside of the sphere 4. What is their motivation?

Listen in for more great suggestions.

This Week’s Investor Exchange Round Table Covered:

* Brett discusses where to find the best property investment yields. In the top 100 rental suburbs around the country, 42 were in Queensland. This is a result of a combination of the job market and the duration of the population moving through. The majority of the high yields are regional rather than metropolitan and these are not the areas with the highest capital growth. The research showed 62% of suburbs were houses and 38% were units (13.57)

* Joel provides an economic update and discusses some recent IPO’s and one failed IPO. The US Federal reserve has cut interest rates again down to 2%. Joel believes this could lead to a powerful rally to the upside beginning sometime in the next 3 to 6 months. He also discusses the correlation with the late 1990’s when new technology IPO’s were hitting the market and the distinct number which had poor fundamentals. Joel provides an example of the recent IPO debacle with WeWork, valued at 10 times its closest competitor despite losing US$900 million in it’s recent filling (21.32)

You Cannot Be Serious:

Last week a lady literally landed in someone’s lap aboard a paddle wheeler on the Brisbane River. The Kookaburra was involved in a crash with the jetty and on impact threw a lady from the deck into the lavatory below, unfortunately, the lavatory was in use at the time giving the lady below quite a fright. Luckily nobody was seriously injured.

Dozens of containers of frozen bull semen have been destroyed by a fire at the Victorian cattle facility, a huge blow to the farming industry.

A tiny fish has made a full recovery after radical surgery to remove a growth from its stomach. The owners paid one hundred pounds to save the life of the fish during a 40 minute procedure.

In France, there was an anniversary for a certain after-hours entertainment venue that decided to use robots as pole dancers.

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Special guest Nikki Smith explores her program, helping people discover their maximiser strengths and ultimately uncover their dream life. Nikki is a psychologist and career coach who grew up with parents who loved their job, and she set out on a mission to do the same personally and for her clients.

Over a series of 12 months, Nikki worked with 4 participants to find their top 5 strengths. They underwent a series of mini experiments that helped determine what tasks they enjoyed the most and that they were the best at. These top 5 maximiser strengths are a combination of a unique personal roadmap. In fact, only 1 in 33 million people are likely to have the same combination.

Listen as she shares incredible journeys of self-discovery and reinvention for two of her clients, Kate and Fred.

“Knowing your strengths is like peeling an onion”. If you work to your strengths for 60 to 80% of the week you boost your productivity, your resilience, your positivity, and your creativity and your happiness is bound to shine. This happiness leads to greater personal and team efficiency.

You can see more of Nikki’s programs and free tools here https://www.nikkismithcoach.com/ or listen to her podcast Dream Life. Best Fite Role. 

 This Week’s Investor Exchange Round Table Covered:

Brett discusses the recent UBS forecast adjustment for Australian House prices. They expect the medium house price to increase by 10%. According to key industry insiders – the market has not just stabilised but has started to improve. Listen in for more details. (34.19)

Louis discusses how you can use a pay rise for a permanent increase in life fulfillment.   Listen in for his fascinating advice. (37.28)

You Cannot Be Serious:

Brittish transport police are asking people to label goods when 25 bags of powder were discovered and police alerted. The bags turned out to be ingredients for a cake (that’s a lot of cake!)

Nikki googled the UGC podcast only to find that the first entry is a star trek fan podcast.

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A report came out last week on the amount of funds managed by retail and for-profit super funds versus not-for-profit super funds (primarily industry super funds). The report states the amount of funds under management of the retail super fund sector have increased only by 0.51% in the last 12 months.  

Generally, retail super funds are run by banks and wealth management companies that are listed on the stock exchange. Their objective is to generate a profit to return to shareholders. 

Of course, the mandated job of the trustee of the super fund is to generate a return in the best interest of it’s super member. However, what the Royal Commission exposed is some super fund trustees have charged higher fees unnecessarily, and generated a lower return than could have been achieved; showing these trustees were not acting in the best interest of their members.  

Listen in now for more of our discussion the industry and retail super fund performance.. 

This Week’s Investor Exchange Round Table Covered:

Brett shares survey results on the costs of building defects or remediation to new home-owners of new apartment buildings over the past decade. Listen in for the data findings. (14:17)

Louis and Brett discuss using the family home as a potential source of retirement funding. Listen in for his thoughts. (16:16)

Joel shares news that the world’s largest economy seems to be in pretty good shape. Cities on the west coast of the US are excelling in the tech industry, and residents are not holding back on spending on retail and entertainment. (34:32)

 You Cannot Be Serious:

Authorities in a German city had to evacuate an apartment block after a cobra escaped from a home and was spotted in the hallway!

A man was asked by his girlfriend to pick up some female hygiene products for her, asking if she wanted the lemon or lime ‘flavour’ as the boxes were either yellow or green. Of course, she posted the text he sent onto social media, and now males all over the world are confused. 

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It looks like the inferior apartment developments built in recent decades are creating a major issue for property investors. Headlines are warning buyers to avoid purchasing modern apartments like the bubonic plague.

Other reports state over 3,400 apartment buildings across Australia had defective, non-compliant, combustible cladding installed, and would require remediation work just to make the building safe. 

Of course, this news puts the construction industry in a bad light, and it’s a wake-up call for purchasers thinking of buying off the plan. Listen in for our discussion on the pros and cons for purchasing off the plan. 

This Week’s Investor Exchange Round Table Covered:

Joel discusses the yield curve inversion in the U.S. Treasury bond market and the concerns it’s causing. Listen in for more on the inversion and what it could mean. (24:00) 

Louis describes a 90-day reflection and goal-setting practice that can help you clarify your thinking around your finances and overall lifestyle. (39:50)

 You Cannot Be Serious:

A CEO saw an intern wearing airpods fired him on the spot! He was wondering why he was wearing airpods when he is an unpaid intern. Not only did he do that, but he went on LinkedIn and told his network all about it saying airpods are reserved for his “core team”. Awkward…

Porthcawl, a seaside town in Whales is planning to install public toilets that will prevent occupants from using them to engage in sexual acts by spraying them with water and sounding an alarm!

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Last week stocks went into a freefall with $60 billion ‘wiped off’ the stock market. Despite this freefall, there isn’t necessarily a need for major concern. We often see headlines like this that incite fear among investors. However, they aren’t always reflective of the gravity of the situation in the stock market. 

What you need to be aware of is these changes in the share market can happen, because large volumes of comparable assets are being traded at the same time. 

You aren’t likely to see these changes in other markets quite so often, like in the property market. Of course, there are some instances, like the global financial crisis, where the property market is hit hard and quickly. However, for the most part, it takes longer to measure and quantify how events impact the property market.

Given the fast-changing nature of the share market, it is important to consider how often you should be reviewing your investments. Listen in for more of our discussion on the topic now.

This Week’s Investor Exchange Round Table Covered:

Brett and Louis discuss how often you should be reviewing your portfolio and what to look for when you do. (16:37)

Louis explains the psychology behind envisioning long term financial goals and making good decisions based on those goals. Listen in for his advice. (20:35)

Brett discusses the labelling of high rise units as the ‘real estate’s equivalent of the bubonic plague’. Listen in for our discussion on the data on the median apartment price in Australia’s biggest cities. (25:53)

You Cannot Be Serious:

A Canadian woman attending an airshow in Calgary was knocked over by winds whilst in a porta-potty. We wouldn’t wish that situation on anyone!

A Florida man has driven a golf cart into a Walmart as deputies chased him with a taser!

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