This week we continued our look at interest rate sensitive sectors. A predicted RBA rate cut got us to lengthen our income portfolio’s duration and we are getting bullish in the short term on a number of contrarian sectors, dwelling construction and retail, notwithstanding our longer-term bearishness. The trick is in balancing a theme of not “fighting the RBA” with minimising the downside risk.
All in a day’s work for a buy-and-sell investor, of course, but what if you are a more passive investor? There’s ways for you too and in addition to last week’s coverage of ways to automate and streamline you’re ordering and investment systems we introduced a new column from respected financial planner Liam Shorte who looks at SMSF strategies. Structuring your tax arrangements properly is often just as important as selecting your asset composition, let alone choosing what securities to buy and sell.
We’ve got another new face as well, with former BRW journalist and noted business satirist David James joining us for a regular back page feature.
Finally, we introduced live trades this week, with daily emails advising on our MacroTrades portfolio positions.
As you can see above it was another week of consolidation for our model portfolios as our favoured QE3 picks ran into resistance.
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