Market Crashes, Brokers going bust, and Owens model portfolios | Q&A with Gemma and Owen
Mar 13, 2025
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Listeners dive into the current turbulence of the share market and the implications of broker defaults. The hosts tackle the intricacies of diversified portfolios and model portfolios versus ETFs, helping audiences make informed investment decisions. There's a cautionary discussion about online safety and scams, as well as the value of loyalty programs and cashback rewards. Plus, Gemma shares some exciting personal news! Tune in for insightful answers to listener questions and a fresh take on navigating financial challenges.
The podcast emphasizes the importance of understanding market history to make rational investment decisions during recent market fluctuations and avoid panic selling.
Gemma Mitchell's upcoming book aims to empower Australians facing significant life changes by providing practical financial advice aligned with their new circumstances.
The discussion on novated leases highlights potential pitfalls in their termination, reinforcing the need for thorough understanding and independent financial advice before commitment.
Deep dives
Asia's Economic Landscape
Asia has become a thriving hub for technology and finance, characterized by significant players like Alibaba, Tencent, and Samsung, pivotal in the realms of AI and semiconductors. Investors can capitalize on this growth potential through tools like the BetaShares Asia Technology Tigers ETF, which allows investment in various leading Asian technology firms with a single trade. The podcast emphasizes the strategic importance of such investments in the context of global economic trends and planning for future financial stability. This highlights the attractiveness of the Asian market, illustrating its strength in driving innovation and profitability.
Gemma Mitchell's Upcoming Book
Gemma Mitchell has recently secured a book deal aimed at helping Australians reset their financial journey after significant life changes, such as separation or transitioning to a single income. With a tentative release set for mid-next year, the book seeks to complement existing financial literature while focusing on practical advice for readers facing personal finance challenges. Emphasis is placed on its relevance for individuals reevaluating their financial goals and strategies during pivotal moments in their lives. This initiative showcases the ongoing commitment to financially empower listeners and readers alike, making expert insights accessible.
The Risks of Novated Leases
Novated leases are highlighted as a potentially perilous financial decision, with several listeners sharing negative experiences linked to misunderstanding costs upon early termination of contracts. One example shared involved an individual facing escalating costs when attempting to exit a novated lease, initially signed under the impression of easy exits promoted by employers. This calls for caution and a thorough understanding of novated leases before committing, reinforcing the necessity of seeking independent financial advice. A deeper discussion into novated leases is proposed, underscoring the importance of informed decision-making in financial products.
Market Reactions and Investor Emotions
Recent market fluctuations have fostered anxiety among investors, triggered by sensationalist media narratives surrounding potential crashes and losses in market value. The podcast discusses the phenomenon of panic buying and selling driven by fear, contrasted with more rational, long-term investment perspectives. It suggests that understanding market history can shield investors from impulsive decisions during downturns, advocating for a focus on the benefits of market recovery over time. Encouraging patience and a long-term view can potentially help investors leverage market falls as buying opportunities rather than sources of distress.
Understanding Diversification in Investing
Diversification is discussed as a critical investment strategy to mitigate risk, with the idea that spreading investments across various assets prevents significant losses if one sector underperforms. The podcast illustrates this by comparing diversified portfolios that include both equities and defensive assets like bonds or cash. Moreover, strategies for achieving true diversification, including avoiding over-concentration in similar asset classes, are emphasized. It stresses the importance of regularly reviewing one's investment strategy to adapt to changing market conditions and personal financial goals.
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Topics covered today:
Listener questions answered:
What is going on with the share market right now?
Novated Lease update from last week's discussions
Is Owen Rask on Twitter? Why it pays to be cautious online.
What is a diversified portfolio? ETFs, asset allocation & risk.
What happens if Pearler or Stake go bust? Do you keep your shares?
Owen’s model portfolios vs. VDHG—which is better for you?
Loyalty programs & subscriptions—worth it or a waste?
Plus.. Gemma shares some big news!
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DISCLAIMER: This podcast contains general financial information only. That means the information does not take into account your objectives, financial situation, or needs. Because of that, you should consider if the information is appropriate to you and your needs, before acting on it. If you’re confused about what that means or what your needs are, you should always consult a licensed and trusted financial planner. Unfortunately, we cannot guarantee the accuracy of the information in this podcast, including any financial, taxation, and/or legal information. Remember, past performance is not a reliable indicator of future performance. The Rask Group is NOT a qualified tax accountant, financial (tax) adviser, or financial adviser. Access The Rask Group's Financial Services Guide (FSG): https://www.rask.com.au/fsg