InvestSMART - Monthly Bulletin

Buy shares! Are you mad?

These are definitely stormy economic times. Our very faith in investing is being tested and our long held beliefs in BUY & HOLD strategies are being fractured.

Many experts are saying the markets will fall further, whilst others have been calling the bottom for some time and have suggested markets, especially in Australia, have been oversold.

So who is right? The answer is simple: no one knows and long-term wealth builders should not care!

Even though most of us have never seen these types of global economic conditions, there is one thing for sure: ‘History will repeat itself’. The ‘bulls’ and ‘bears’ will continue their tug of war, with both teams having their wins and losses for another 100 years and more. And like today, where we are comparing ourselves to the Great Depression of 1930, most likely our grandchildren in 2085 or so will be comparing themselves to the Global Financial Crisis of 2008.

Investors need to keep the faith and stick to their long-term wealth building strategies.

This does not mean we do not change our asset allocation to take advantage of economic cycles. Our investment strategy may be a very simple one, such as moving more of our money into cash as the interest rate cycle peaks and moving more of our money into growth assets as cash rates bottom.

No matter where we are in the economic cycle, long term wealth builders need some exposure to growth assets like shares and property.

In light of our views on long term wealth building through long term exposure to growth assets, InvestSMART launched our WealthBuilder service last week. WealthBuilder is designed to help investors re-enter the market confidently.

WealthBuilder provides free access to recommended fund portfolios, which have been:

Independently researched by Zenith Investment Partners

Chosen to diversify your money over multiple asset classes, and

Available on Australia's most popular investment platform

Please take a look at our WealthBuilder service at www.wealthbuilder.com.au

Ron Hodge

General Manager

My Portfolio

Take the hassle out of monitoring your portfolio of ASX shares and managed funds by using InvestSMART’s free automated portfolio management system. It’s easy to set up – just name your portfolio and choose the stocks or funds you want to track.

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Will the gold rush continue?

thumbnail Oliver's Insights | Right now, gold is attracting a lot of interest. It’s about the best performing ‘asset’ so far this year, rising 10% in US dollars (US$) and 18% in Australian dollars (A$). Why all the interest and will it be sustained? Full article...

More from Oliver's Insights...

A new year doesn't always bring good news

thumbnail Catons Corner | Those thinking the turning of the year would immediately bring better news now know they'll need to wait longer. January was again not a happy month for investors. Full article...

More from Catons Corner...

Q: How do I know when it’s the right to get back into the investment market?

A: Well know body seems to be exactly sure when the right to invest is at the moment. However you maybe able to get a bit of an insight by reading the expert articles of Chris Caton, Chief Economist for BT and Dr Shane Oliver, Head of Investment Strategy and Chief Economist for AMP.

Q: I have noticed that TrailCap no longer appears on the main menu bar of the InvestSMART website, how do I access TrailCap now?

A: If you are an existing TrailCap member then you can access ‘Accumulated Trails’, ‘Past Payouts’ and ‘Non-contributing Funds’ under the ‘Home’ menu bar. If you are not an existing TrailCap member and would like to read more about this service, you will find ‘What is TrailCap?’ under the ‘Managed Funds’ menu.

Q: I have invested in some managed funds via InvestSMART and I would now like to purchase additional units. How do I go about doing this?

A: Most fund managers tend to accept the purchase of additional units in writing or by completing the additional contribution form available from the InvestSMART website inside the Product Disclosure Statement for the fund you are invested in. And as long as InvestSMART is currently listed as your discount fund broker/adviser you will automatically receive our 100% entry fee rebate on your additional contribution.

FREE Essential Guides

The Sydney Morning Herald and The Age FREE Essential Guides are written by journalists who offer integrity, independence and authority. They are intended to act as an introduction to some of the more complicated financial issues faced today and educate you about many of the investment choices available to you. They also provide information on a range of other topics from travel destinations to lifestyle choices such as choosing the right wine or retirement village. Visit The Sydney Morning Herald shop or The Age shop for your FREE Guides.

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Offer	Closing date
AMP Capital Sustainable Share Fund	Open ended
BlackRock Australian Share	Open ended
BlackRock High Conviction Consolidated Australian Share	Open ended
BlackRock Index - Top 20	Open ended
BlackRock Property Securities Index	Open ended
BlackRock Resources	Open ended
Colonial FirstChoice FirstRate Saver	Open ended
LMWI Diversified Property Fund	Open ended
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FXCM Opens FXCM Australia Ltd. Offers No Dealing Desk Execution

Press Release 26/02/2009 | New York, February 26, 2009 - FXCM Holdings LLC announced the opening of its newest office in Sydney, Australia.

Property trusts under the gun

Sydney Morning Herald 4/03/2009 | REAL ESTATE investment trusts were hard hit yesterday, amid another round of rating reviews and pricing downgrades following the worst reporting season in 40 years.

In the ups and downs, hedge funds don't deserve scary image

The Age 4/03/2009 | GIVEN their secretive image and complex trading strategies, hedge funds continue to cop a battering - although most Australians have exposure to them in one form or another.

Elderly poor are the victims of an unfair pension system

The Age 4/03/2009 | Reforms are needed to ensure benefits reach the people in need.

No rest for the worthy

Sydney Morning Herald 4/03/2009 | The economic downturn means retirement is no longer an option for many Australians.

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IMPORTANT : InvestSMART Financial Services Pty Ltd makes no recommendations as to the merits of any investment opportunity referred to in this email or its related websites. Before making any investment decision on the basis of any reports or information provided you must read the disclosure document and make your own investigations regarding the accuracy, reliability and completeness of this information. This information has been prepared for distribution over the internet and without taking into account the investment objectives, financial situation and particular needs of any particular person. All indications of performance returns are historical and can not be relied upon as an indicator for future performance.