| Hi Aris, Welcome to this week's edition of Smart Investing. The Reserve Bank didn't pull any punches last week when it announced that it was holding its cash rate at 4.35% and had no intention of reducing it anytime soon. That's bad news for borrowers hoping for some near-term rates relief. In our lead article this week, Vanguard's Senior Personal Finance Writer, Tony Kaye, looks into the reasons why our central bank is keeping its official rate on hold while other developed countries, including the United States, have already begun cutting theirs. Yet it's evident that some canny borrowers have been taking advantage of unofficial rate cuts. Many financial institutions have been busy cutting their borrowing rates on mortgages and other loans. Our second article examines what's been happening with rates behind the scenes in anticipation of a RBA cut. Lastly, we take a closer look at the concept of investment diversification. Investors and advisers often see diversification solely as spreading investments across asset classes. But beyond portfolio construction, it extends to tax and income. Read our third article to find out more.
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| Why the cash rate is being kept on hold Our base case is the RBA will not enter the easing cycle until the second quarter of 2025. Read article | |
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| The interest rate cuts happening behind the scenes Interest rates are officially on hold, but unofficially they're not. Read article | |
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| Diversify the way you think about diversification Investors can employ diversification strategies beyond just asset allocation. Read article | |
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| Beating the market is much harder than you think The latest SPIVA results highlight the benefits of index funds as portfolio cores. Read article | |
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| The global 60/40 portfolio: Steady as it goes Returns for the global 60/40 portfolio are positive again, reaffirming its benefits. Read article | |
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| Investor stories: Meet Saul Barnett As other investors panicked in 2020, Saul decided it was time to invest. Read article | |
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