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December 2008

Investor Intelligence

Welcome to Investor Intelligence for December 2008


While 2008 has been a horrible year for investors with the All Ords currently trading 48.6% below its November 2007 high I am optimistic that 2009 will bring better days for investors. The recent 1% cut in interest rates and the distribution of billions of dollars to many poorer Australians should contribute to our economic growth next year.

Around the world Central Banks and governments are spending trillions of dollars and this economic stimulus should go a long way towards rebuilding confidence in the global financial system. Despite the continued volatility, powerful positive underlying economic forces such as the worldwide proliferation of technology and globalisation should see confidence return in 2009.

I cannot predict exactly when the volatility will end but I can confidently say that those investors that dollar cost average over the coming year will be glad they did so in 5-7 years from now. Personally I am using the 2020 DIRECTINVEST BlueChip20 to acquire high quality blue chip companies at sale prices. I think the stock market has over corrected on the downside and stocks are on sale at the moment. To quote legendary investor Warren Buffet “Be greedy when other are fearful and fearful when others are greedy.”

At 2020 DIRECTINVEST we remain committed to helping our customers save money by avoiding unnecessary commissions and unnecessary adviser fees. In 2009 we look forward to bringing you more new and innovative products like our direct wrap accounts and low cost BlueChip20 products. Our Investor Education centre is designed to assist you in becoming a better investor and our friendly and informed staff are dedicated to providing you with superior customer service.

As this will be our last newsletter for 2008 I would like to take this opportunity to thank all of our customers for their continued support and wish everyone a Merry Christmas and a Happy & Prosperous New Year. Have a safe and enjoyable summer.

Michael Lannon & the team at 2020 DIRECTINVEST

Thank you to everyone who joined us for our 2008 Spring Seminar Series “More Smart Ideas and Strategies”. For those that were unable to attend, the presentation is now available to view online. more info
 
November was not a good month for economic news. A range of groups released their 2009 forecasts for Australian and global economic growth.The good news is that all groups expect economic growth to continue in Australia in 2009. The bad news was that forecasts for global growth were particularly weak.

Read the latest Market Updates and Market Volatility News

 
Australian Unity Retirement Village Investment Notes
Limited offer closing 31 December 2008

The Notes combine Australian Unity's Expertise and experience in retirement living, property and investment management, to offer a 3 year term with a competitive interest rate of:

Bonus rate for 1st year via 2020 DIRECTINVEST
Year 1
9.00%^
Year 2 8.50%
Year 3 8.50%

Minimum investment $5,000
Bonus 100% rebate of upfront commission by way of bonus 0.5% interest in the first year.


 
A recent Choice report found that
  • There are 13 million superfluous and inactive super accounts in Australia
  • Australians are losing $1.1 billion a year in extra fees, missed earnings and lost payments
  • $416 million a year is paid in extra fees alone
Whilst it is often placed in the 'too hard' basket - this is your hard-earned money and your future that's at stake. Sort out your super - find out how.

 
Fund Name S&P Rating  
CFS FirstChoice Inv - CFS Prop Sec Opportunities Not Rated Up
DDH Australian Small Companies Fund On Hold Up
Perpetual WealthFocus Inv - Challenger Howard Mortgage Fund Down


On Hold


For a complete list of re-rated funds and to keep up to date with fund ratings from both Standard & Poor's and Morningstar:

Managed Funds more info  
Superannuation Funds more info 
Allocated Pension Funds more info 

 
2020 DIRECTINVEST BlueChip20

Owning a share portfolio has never been easier or more cost effective. The BlueChip20 is an easy introduction to saving and investing with a minimum investment of just $5,000:
  • Own a share portfolio of Australia's largest companies
  • Direct ownership of the underlying shares - not units in a managed fund
  • Grow with monthly direct debits from $500
  • Diversification across top 20 companies
  • Half the cost of a managed fund, and institutional brokerage rates


 
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