News & Articles

10 Ideas to Help You When Markets are Volatile

From time to time, equity markets will experience bouts of volatility due to a variety of reasons. Here are 10 key messages that can be used to stop you making rash moves. 1. Volatility is a normal part of long-term investing From time to time, there will inevitably be volatility in stock markets as investors react to changes in economic, political and corporate environments. As an investor, your mind-set is critical. When we are prepared at the..... Read more

A Dozen Quotes to Make (or Save) You Money

"Where a lot of investors make mistakes, I believe, is they go looking for a quick buck and that just doesn’t happen. Whether it be property or shares, it just takes a heck of a long time to get these things to work.”Billionaire property developer Lang Walker1. Shares“It is far more important to minimise the inevitable investment mistakes than be obsessed with trying to find the tenfold investment winners.”Hamish Douglass, Magellan Group CEO, CIO..... Read more

​Why have banks started to increase interest rates?

Interest Rate LiftIn recent weeks many banks have started to lift interest rates on investment loans.It might seem a strange thing to do while the official cash rates is so low, but there’s a reason for it.What’s happening?The latest announcement from RBA is "rates on hold". However discretion prevails with the lenders.Many lenders including major banks such as ANZ, Commonwealth Bank and NAB have announced an interest rate rise on investor loans...... Read more

Why is the gold price falling and where is it going next?

The gold price has been falling since 2011 and this trend will be difficult to reversehe US Federal Reserve plans to raise interest rates this year on the back of an improving American economy, and that is taking the shine off gold.Why? Because gold is a store of wealth for investors, but generates no returns from regular interest payments or dividend income. Investors have been happy to park their money in gold over the past six years while retu..... Read more

China

China's SharesShare prices had risen strongly but steadily in the nine months to March before rallying between April and June, fuelled by an explosion in investment lending to retail investors. By mid-June the Shanghai market had risen by around 150% from June 2014 levels. By June 2015 valuations were looking extremely stretched in a number of sectors in the context of underlying earnings prospects.The average market Price to Earnings (PE) ratio ..... Read more

Housing - The Broader Picture

Diversity Capital city housing markets remain extremely diverse. Home values have recorded strong growth over the past year in Sydney and Melbourne, and moderate growth in Brisbane and Canberra. Values fell across the remaining capital cities. The diversity in the housing market highlights the different growth drivers that are evident from region to region. Outside of the capital cities, regional markets linked to the resources sector are general..... Read more

Market Update 3rd Qtr

Australian Shares Australian equities suffered over the September quarter with the S&P/ASX 300 Accumulation Index falling -6.47%. Investor worries over a slowdown in China and the relatively fragile state of the Australian economy continued to weigh on share prices. Major Australian banks added to the selling pressure via ongoing equity raisings required to meet higher capital requirements demanded by regulators. Australian economic data was ..... Read more

Why We Like Dividends

IntroductionDividends can provide a degree of security in volatile times and are likely to provide a relatively stable and attractive source of income combined with 'earnings growth' giving a relatively high proportion of returns going forward.Up until the 1950s most share investors were long term investors who bought stocks for their dividend income. This changed in the 1960s when investors started to shift focus to capital growth. However, with..... Read more

​BIS Figures Confirm Australian Housing Overvalued

Australia near the top of all measures of overvalued housing.The international body that represents central banks has released data that puts Australia near the top of all measures of overvalued housing.In its latest quarterly update, the Swiss-based Bank for International Settlements (BIS) has published extensive historical analysis on historical home prices in a large number of countries for which reliable data is available.Confirming a recent ..... Read more

Insurance – it can definitely happen to you

Why do I need insurance? Most people wouldn't dream of taking their car on the road without car insurance, or living in a house without home and contents insurance. But when it comes to taking up insurance to protect their life or income, most Australians act indifferently. Common reasons for not taking up insurance are a lack of knowledge, a belief that insurance is too expensive and the age-old ‘it won’t happen to me’ mentality. If this sounds ..... Read more