This week on Equity Mates

Hey there Equity Mate,

Here are some headlines that have caught our attention:

• Telstra announced it plans to cut 9% of its workforce, or 2800 jobs, by the end of 2024. The company said it’s part of an effort to improve productivity, saving them $350 million.

• Eli Lilly's diabetes drug tirzepatide gets approval in China, allowing it to go head-to-head with rival, and creator of Ozempic, Novo Nordisk

• Peloton - the maker of once popular indoor fitness bikes - is down 97.99% from it’s peak during COVID. The company is still suffering from waning demand, and has had to refinance debt to stay alive.

With plenty happening in markets, make sure you’re listening to our two podcasts to keep up to date. Here’s what we’re releasing this week:

Equity Mates Investing (Spotify | Apple | YouTube)

• Monday - COVID stocks that haven't recovered (yet?), Pimp my portfolio & should I invest in gold?

• Tuesday - Buy or Sell: Roger Montgomery - Nick Scali, Megaport, NovoNordisk & more

• Thursday - Industry Deep Dive: Healthcare - Double the size of supermarkets, none of the hype

• Friday - Expert: Sam Gordon - How to find suburbs poised for growth

Get Started Investing (Spotify | Apple | YouTube)

• Tuesday - Introducing Pimp My Portfolio

• Friday - Superannuation: You’re Siting On A Monster | Anne Fuchs, Australian Retire ment Trust

Your questions, answered

Mila asked via email:
“Why do I need a specific advisor for insurance”

We put Mila’s question to Phil Thompson, Director & Financial Adviser at Skye

Book a call with Phil to discuss your insurance needs

The short answer is that you don't have to use an adviser to set up your policy. There are three main options, directly with the insurer (or intermediary), through your super fund, or use a financial adviser.

Direct 

• Benefit: You go directly to the insurer and cover can be issued fast with limited underwriting options.

• Disadvantage: Has the lowest claims acceptance rates of the three, which means the policies are generally much worse (with a few exceptions), often insurers will only accept or decline cover and do not give option to have cover with an exclusion and you are limited to only paying premiums from cash flow and often limited options for cover.

Super fund

• Benefit: Fully paid through superannuation, low levels of cover are often quite affordable due to these premiums being tendered.

• Disadvantage: Policy can change over time meaning the policy you sign up for and pay premiums for many years can be a very different policy when you come to claim and some benefits are not available (i.e., trauma cover, etc.)

Advised (retail policies) 

• Benefit: Flexible premium structures available such as choosing the insurer best suited for you but having your super fund pay majority (or all) of the premiums. The policies' terms and conditions cannot get worse over time so the policy you have today is what your claim will be assessed on. Often the most affordable option based on the 1700+ clients we’ve helped set up and compare against the market. You have an adviser in your corner at set up to negotiate most appropriate terms and level of cover as well as at claim time to support you through this process.

• Disadvantage: The process can take longer to get set up as an adviser will need to go through their process to complete all their research and recommendations (presented within a statement of advice). The adviser may charge a fee to complete the initial research and recommendation.

If you have a question you’d like answered, hit us up at [email protected] 

A word from this week’s sponsor, Australian Property Scout

The Scouting Australia Podcast is your go to platform for all the latest strategies and information for your success in property investing.

Hosted by Equity Mates regular property expert Sam Gordon. He unpacks everything from Real Life Investor Stories, Weekly Property News Bulletins, Investing Strategies and much more.

Listen in to The Scouting Australia Podcast on all your favourite listening platforms and start your property education journey.

What we’ve been reading

Influencers Are Spreading Dangerous Misinformation by Saying Sunscreen Causes Cancer — and People Believe Them

The internet is full of dangerous misinformation. That isn’t new news. But the latest conspiracy theory doing the rounds is particularly concerning (especially for a fair-skinned person that bakes under the Australian sun - this is obviously Ren writing this part of the email).

A growing number of influencers are spreading the claim that sunscreen causes cancer.

This is dangerous. More than 2 in 3 Australians will be diagnosed with skin cancer in their lifetime. About 2,000 Australians die each year from skin cancer. In America, it is not as prevalent but it is still the most common form of cancer, with about 1 in 5 Americans developing it in their lifetime.

The Wall Street Journal first reported this online trend (link here, behind a paywall). The conspiracy has been fuelled by a report that found certain sunscreens contained benzene, a chemical that can cause cancer with repeated exposure over time. However, as this article explains, dermatologists have been quick to point out these samples were contaminated. They weren’t quick enough though. And now the internet is running with this sunscreen causes cancer conspiracy.

$400 for one pineapple: The rise of luxury fruit

Would you pay $395.99 for this pineapple?

Welcome to the world of high-end fruit. This pineapple sells for $395.99 at Melissa’s Produce, a California-based speciality fruit and veggie seller. The producer, Del Monte, grows the fruit in Costa Rica and has traditionally sold it in China. Now they are testing it out in the United States.

This article from CNN takes a look at the rise of premium fruit. From Honeycrisp Apples to Cotton Candy grapes and Sumo Citrus, they chart the rise of these premium varieties over the past 30 years. They even look at the vertically grown Japanese Oishii strawberries that sell for $50 for a pack of 8. But even that seems to pale in comparison to the $400 Rubyglow pineapple.