Here’s what you need to know today

• Yesterday marked one year since the horrific October 7 terrorist attacks by Hamas on Israel. In the year since, conflict in the Middle East has expanded from Gaza to the West Bank, Lebanon and Syria. In Australia, thousands of pro-PAlestinian protestors (ABC News | AFR)
  
  

• The aftermath of Hurrican Helene continues to be felt across the US. It will go down as one of the deadliest-ever storms to hit America with 227 people dead across 6 states as the clean up continues. The impact will continue to be felt for months, as businesses slowly recover. For example, Baxter International supplies 60% of America’s IV fluid is based in North Carolina and was wiped out by the storm. (CNN | NPR)
  
  

• Rio Tinto is looking to get further into the lithium industry, despite the lithium price falling more than 80% from its 2022 high. The Australian miner has confirmed it is in takeover talks with Arcadium Lithium. Arcadium currently is valued at $4.8 billion but a Macquarie Bank analysis recently valued it at $8.5 billion (AFR).
  
  

• TikTok-owner ByteDance is playing catch up in the AI arms race. A recent report found that it was scraping the internet and gathering data 25 times more quickly than OpenAI. (Quartz)
  
  

• The competition to buy Platinum Asset Management is heating up. Originally the target of Phil King’s Regal Partners, the fund manager started by Kerr Neilson now has interest from Geoff Wilson’s Wilson Asset Management. This is fast becoming a who’s who of Australia’s funds management industry. (SMH)

What the…?

Here’s a novel re-election message. The mayor of Brazilian city Rio de Janeiro Eduardo Paes has promised free Ozempic for all if he is re-elected.

As the mayor declared when announcing the policy, “Rio will be a city where there will be no more fat people”. With more than 65% of adults in Rio being overweight and 26% obese, that is a big promise from the mayor. (Futurism)

Investing is a lifelong journey

Here’s what you can learn today.

Question from the Community: Should I sell my property to invest in a portfolio of ETFs or hold the property and take advantage of gearing? 

We put this question to Dylan Pargiter-Green, Director and Financial Advisor at Bold Wealth

Like the little girl in the taco ad – Porque no los dos? Given you’re able to gear with only a deposit on a property, this is a wonderful way to build long term wealth, with an increasing income offset against cost over time, and tax benefits to boot.

There is a lot to unpack here though and questions are raised:

• If you sell the property, are you only getting the deposit amount back, less stamp duty paid and selling fees? And is this what you’re using for the ETF portfolio?

• Or do you have equity that you could use in the property? If you own more of the property, you could borrow against this, keep the property and invest in the ETFs.

• Where is the property? Do you have confidence that it’s a great high capital growth asset to hold for the long term?

• Is liquidity an issue for you?

• What is your portfolio of ETFs and how much are you expecting to earn from this portfolio? A property at 80% LVR (20% Deposit) only needs to grow at 4% p.a. to make an effective 20% on your money (before costs, CGT). Are you confident that your portfolio can consistently beat 20%?

When it comes to this choice, we recommend thinking about your future needs and why you’re making this choice, rather than a choice between the two in black and white.

Property is a great asset because it allows for future leverage and the right properties have significant capital growth and wealth creation. We also recommend getting a property advocate involved in these discussions who can give a solid appraisal of the property in question and help build a solid strategy.

Want to speak to Dylan or another of our hand-picked financial advisers? Fill out the form on our website and we’ll put you in touch.

Today’s sponsor is Pacific Equity Partners

Private equity has never been easy to get into or out of, until now. As Australia’s leading private markets investor, Pacific Equity Partners has launched the PEP Gateway Program to unlock global private equity for wholesale investors, with regular liquidity.

Top-tier global private equity funds have consistently outperformed public markets. The PEP Gateway Program facilitates investments with some of the world’s best global private equity funds and fund managers.

Visit www.pepgateway.com.au for more information.

 Please refer to the terms and conditions contained in the relevant PEP Gateway Program fund documentation. Liquidity and redemptions are subject to the limitations in each fund’s governing documents. Past performance is not a guarantee of future results. This information is for wholesale investors only and does not constitute an offer of securities or financial products. Always consult with your professional advisers.

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