Here’s what you need to know today

• Torrential rain in northern Queensland has led to severe flooding, with meteorologists suggesting these could be the worst floods in North Queensland in over 60 years. Thousands of people have evacuated and one person has died as the Townsville airport closes, supermarket shelves run empty and power outages are reported across the region. (ABC News | Guardian)
  
  

• Markets had a terrible day as they digested the news of President Trump’s tariffs: the Australian market (ASX 200) was down 2% and the Aussie dollar hit a 5-year low against the US dollar, buying just US$0.61. (ABC News) Worst hit of the ASX stocks was Fisher & Paykel Healthcare down 8% after it warned that 43% of its revenue comes from the US, and 60% of its products sold in the US are manufactured in Mexico. (AFR)
  
  

• Analysis by Bloomberg estimate that the tariffs will increase inflation in the US by 0.7%. The threat of higher inflation is expected to temper the Trump administration’s desire to impose more widespread tariffs on other trading partners. (Bloomberg)
  
  

• President Trump did announce one exception to his new tariffs. Oil from Canada and Mexico will be spared, as the US relies on the two countries for more than 50% of its imported oil. While not officially exempt yet, President Trump told reporters “Oil is going to have nothing to do with it as far as I’m concerned”. (CNBC)
  
  

• House prices in some Australian cities have fallen for the second consecutive month in January - led by falls of 0.6% in Melbourne, 0.5% in Canberra and 0.4% in Sydney. However, it is not consistent with prices continuing to rise in Adelaide (+0.7%), Perth (+0.4%) and Brisbane (+0.3%). (Capital Brief)

What the…?

NASA have just discovered a 100-metre-wide asteroid, named 2024 YR4. Bad news, there is a 1% chance it hits Earth. Good news, we’ve got time, it won’t collide with Earth until 22 December 2032.

The next observation opportunity will be in 2028, with experts suggesting that if it looks on course to collide with Earth then, we will start needing to think about planet defence, including intercepting it with a spacecraft. (NASA)

What podcast segments do you want more of in 2025?

One data point we try and collect through the Equity Mates Community Survey is which parts of the podcast are working (and which aren’t).

We’re starting to analyse the 2025 results and we’re learning:

• Favourite segment: Pimp my Portfolio (60% of respondent’s favourite segment)

• Least favourite segment: Book Club (27% of respondent’s least favourite)

These are the data points that help us when planning for 2025 and beyond. The survey is open for one more week, so please have your say and help us make Equity Mates even better in 2025! (Survey Link)

Investing is a lifelong journey

Here’s what you can learn today.

Don’t cut your pie too thin

Community Question: "If I have $10,000 or $20,000 or even less, how should I think about splitting that across my investment options?”

We put this question to Charlie Viola, Executive Chair, Adviser and Founding Partner at Viola Private Wealth.

Charlie: My counsel always is if you got a small amount use the same principles, but invest in options that are suitable for that smaller pot of money. Don't cut up your pie too thin. Think about good quality ETFs that have got good quality underlying assets and have a material amount of your pot of investments in those good quality assets. 

If you've got a small amount - less than $100 each time or less than $50,000 total to invest - you really don't want more than two or three lines of investments, to be honest, because you end up cutting up the pie too thin.

You end up having immaterial exposures that even if that exposure grows 100%, it actually doesn't change your life.

So if you've got $50,000 and you've got 20 lines of investments, you know, simple maths tells you you've got about two and a half grand or two grand or whatever in every investment. Even if that thing shoots the lights out, two grand turned into four. It actually hasn't changed your life.

You want a greater exposure or more material exposure to normal, good quality lines of investments and allow efficient market theory to do its job over the medium to long term.

Interested in speaking to a financial adviser? Fill out the form on our website and we’ll match you with one of our hand-picked financial advisers.

Today’s sponsor is Magellan

Starting points matter – Understanding the three components of shareholder returns.

Portfolio Manager, Emma Fisher discusses why starting points matter and how they influence investment strategies. Emma breaks down the key factors that drive shareholder returns, sharing insight on future returns, the potential impact of interest rate cuts, and investing in businesses with lower expectations. 

Airlie provides an opportunity to access an experienced investment team with a proven track record of prudent, common-sense investing. 

Airlie’s funds are actively managed, concentrated funds that seek to invest in quality Australian listed companies that aim to deliver attractive long-term capital growth and regular income to its investors. 

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