Mercer actuary David Knox says the data used to determine the old age dependency ratio is “totally out of date” and overstates the severity of the problem.
From their inception, SMSFs have always attracted more than their fair share of criticism. Now it’s an ageing membership that’s being used to restrict their numbers.
ASX falls on RBA minutes, lithium price slides, property market hit
The Australian sharemarket reversed course on Tuesday, falling 0.3 per cent after the Reserve Bank released the minutes from its latest board meeting. According to the summary, there is a strong case for further rate rises, which triggered weakness in property related sectors led by Domain Group (ASX:DHG) which fell by 2.6 per cent. Across the market the energy sector was the major detractor, falling 1.9 per cent as new emerged of a growing glut of LNG, triggered by falling demand and prior higher prices. Lithium miners were also in focus, with the materials sector managing a 0.2 per cent gain on stronger iron ore prices, but hit by a significant selloff in related stocks in Sayona (ASX:SYA), down 9.3 per cent, and Lake Resources, which fell 9.2 per cent. This was triggered by broker UBS cutting forecasts for earnings from lithium stocks and price expectations in 2024.
Chinese economic growth jumps, Hub 24, Praemium deliver updates
The Chinese economy is roaring back to growth, with the country growing 4.5 per cent in the first quarter of the year, triggered by a rebound in factory and consumer activity following the end of COVID-19 restrictions. This bodes well for a return to tourism and consumption in Australia. Shares in Praemium (ASX:PPS) were flat despite the group reporting another 1.2 billion in inflows and an 8 per cent increase in funds under administration to $43.7 billion. It was a similar story for Hub 24 (ASX:HUB), which added another $1.9 billion in flows, taking total assets to $76.9 billion, an increase of 16.5 per cent on the prior year. Among the biggest standouts was cancer imaging business Telix (ASX:TLX) which rallied close to 13 per cent after posting a quarter of positive operating cash flow on sales of $83.2 million. US sales were the key driver, up 27 per cent, with management announcing plans to accelerate the rollout in both Europe and the Asia Pacific.
US markets flat, Netflix sinks on disappointing growth, Goldmans weathers the storm
Both the Dow Jones and Nasdaq finished slightly lower overnight, while the S&P500 gained close to 0.1 per cent as earnings season kicked off. Disappointing results from Goldman Sachs (NYSE:GS) and Johnson & Johnson (NYSE:JNJ) weighed on the Dow Jones, while weaker than expected subscriber growth saw Netflix (NYSE:NFLX) end broadly flat. The company reported just 1.75 million in new subscribers, below the 2.2 million expected by analysts while also announcing a slight improvement in revenue growth on the back of the release of the ad-supported lower cost platform. The company also finally put an end to its DVD in the mail service. Goldman Sachs finished 1.6 per cent lower despite the company announcing it had weather the storm related to Silicon Valley Bank reasonably well, with quarterly earnings falling from US$3. 8 to $3.1 billion. Revenue also fell slightly but management remains confident on the opportunity set that is emerging. Housing starts also fell once again after a recovery in the prior month.
