[Smart Investing] The trouble with intuition when investing

Investments and personal finance insights from Vanguard Australia

9 September 2020 In this week's Smart Investing, we discuss cognitive biases and why our desire for quick, intuitive answers may impact our investments. Vanguard Senior Financial Writer Tony Kaye also takes a look at the Super Early Release Scheme and how the ATO is paying close attention to potential tax avoidance. Lastly, we have included a piece on market speculation and why day trading and market timing poses clear risks to financial health. Regards, Robin Bowerman Head of Corporate Affairs Vanguard Australia

The trouble with intuition when investing By: Robin Bowerman Researchers and psychologists have identified endless ways in which the human brain is prone to bias, errors and poor judgment – and the investing community has latched on. Read more

The Tax Office targets COVID super recontributions By: Tony Kaye The Australian Tax Office is paying very close attention to potential avoidance where individuals have withdrawn superannuation funds and then recontributed those funds back into their super account to claim a tax deduction. Read more

To speculate or not to speculate ASIC recently conducted a review into 2020's sudden surge in sharemarket speculation as it grew increasingly concerned about the risks being borne by small investors. The findings of the review were extraordinary. Read more

VANGUARD IN THE NEWS Growth assets an SMSF priority Darin Tyson-Chan | Self-Managed Super | 2 Sep 2020 The 2020 Vanguard/Investment Trends SMSF Investor and Planner Report revealed 30 per cent of trustees surveyed said maximising capital growth was their main goal in selecting investments over the coming 12 months.This compares to 22 per cent of respondents who named this as their main focus in 2019 and 23 per cent providing the same answer in 2018. To read more, please visit the SMSF Magazine website. Please note the link above will show a copy of the article (where freely available), or the publisher's website if a subscription is required.

IN CASE YOU MISSED IT

How SMSF trustees navigated COVID-19 volatility While the SMSF market continues to grow, the impact of COVID-19 and subsequent macroeconomic uncertainty appears to have exacerbated the slowing rate of new SMSF establishment. Read more

The investor warning signs ASIC is watching By: Tony Kaye Amidst the COVID-19 pandemic there's been a surge in day-trading activity by retail investors chasing quick wins. Read more

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