Media Super’s Jon Glass explains how super funds manage risk and why they’re better than the average investor
The GFC decimated not only the world financial markets but also Australia’s super funds. Over $75 billion was wiped off our share value and it will be another two years before super savings are back to their pre-GFC levels. Yet here has been a recovery during that time — albeit with some hiccups along the way.
One positive from the economic tsunami has been the adoption of more risk averse strategies, as Dr Jon Glass, chief investment officer for Media Super, will explain on our upcoming 3Q.
But what if I want to take those risks and manage my fund according to my needs? The evidence suggests you’ll be much worse off, simply because of a tendency to stick to bad habits and make poor decisions.
Dr Jon Glass, chief investment officer for Media Super, explains how the psychology of risk affects our actions when it comes to investments — and not in a positive way.
ACTU’s Jeff Lawrence explains why we should increase the minimum wage.
Each year negotiations begin on a decision which will effect the lives and livelihoods of one in six Australians. They are the low wage workers who are employed in places where there is no collective agreement to ensure they receive basic wages.
It’s called the Annual Wage Review and it’s an opportunity for the ACTU and unions to mount arguments for an increase in the minimum wage. For the 1.4 million people on the minimum wage, its their one chance a year for a pay rise.
Last year, the minimum wage increased by over 3 per cent to $589.30 a week, or $15.51.
But is it enough? How far does less than $600 a week, before tax, go in the capital cities where rents and prices are up? Not far enough, according to Jeff Lawrence, the ACTU general secretary, who outlines on 3Q why there needs to be an increase for the country’s most disadvantaged workers.
All this fighting and cussing in Canberra has at least silenced the elephant in the Lodge, that $28 per tonne price on carbon.
It seems weeks since Tony Abbott strapped on a reflective vest and imposed himself on a Queanbeyan lunch room, but it’s only months until the price takes affect.
At this point one of two things happens – the sky falls in and Abbott blames the carbon tax or the sky doesn’t fall in and Abbott blames the carbon tax.
So as Julia Gillard prepares to strap on the safety helmet and assume (resume?) the position, here are a few clues from the polling to help her though the difficult times ahead.
1. Never again call the Carbon Price a Tax – It’s not and your concession that a price on carbon as part of the transition to an Emissions Trading Scheme was one of the most spectacular own goals in recent political history. Language does matter.
2. Take it Back to the Science – our polling shows that the biggest single determinant on supporting action on climate change is not party affiliation, age or gender but belief in the reality of climate change. The ability of the denial movement to cloud the science on climate change was decisive. Once the facts were clouded science never really had a chance, being a discipline based on scepticism as it is. Giving science a voice and then finding a forum to spread its word may be too important to trust to the media.
3. Tell the whole Story – support for a carbon price shifts from majority opposition to majority support if the question changes from support for a price on carbon, to include the compensation and investment in renewables that are part of the package. Getting the airtime to get the whole sentence out is vital to selling the measure.
4. Focus on the Car not the Carburettor – the great myth about the carbon price is that the public went from supporters to opponents in one fell swoop of Abbott vitriol. The reality is that the decline in support was first based on confusion as the Rudd-Wong dream team (and we’re talking sleep here) got obsessed with the detail of the CPRS. After 12 months of technical debate most had lost interest and drifted into indifference and confusion. From there they were easy pickings for a scare campaign.
5. Remember the best response to a scare campaign is a scare campaign – Running the high road of caring about future generations will never trump fear and loathing. Better point out as the most carbon-exposed economy in the developed world there are huge economic dangers if we sit back and wait for others to act. Get the markets scared, there is nothing rational about denial.
6. Remember this is the great moral challenge of our times – on this K Rudd was K Rect; it was the backflip that killed him. Dealing with the challenges of climate change is why we entrust our nations to governments – we expert them to make tough decisions in our long-term interests, even if we don’t always like the medicine.
7. And finally, stop pretending you didn’t do something that was brave and right – Like taxing our natural resources, building a national broadband network and giving the disabled a better deal. These are the anchor points of a Labor Government to be proud of. If only it would let us.
Read Essential's ongoing research on the public response to Covid-19.
In this week's report:
- Performance of Scott Morrison
- Performance of Anthony Albanese
- Preferred Prime Minister
- Views towards re-electing the federal Coalition government
- Party trust to handle issues
- Importance of Australia’s international reputation
- Scott Morrison’s impact on Australia’s international reputation
- Views towards Australia’s international reputation