News & Articles

Economic Update April 2015

Investment Markets The global economy in aggregate is ticking along, with positive economic growth against a backdrop of low inflation. The growth, though, is quite varied across the globe – the U.S. has been leading and China has been slowing down. Central banks have cut interest rates, including in Australia. Locally, not a lot has changed, with the Australian economy still growing albeit more slowly than usual. What is of concern is that valua..... Read more

Commodities

The commodities boom made Australia the lucky country. But rising debt and a slump in Chinese demand for resources signal tough times ahead Down Under During the boom years of the so-called commodities “super cycle” China couldn’t buy enough of everything that Australia dug out of the ground. While the rest of the world suffered from the aftermath of the global financial crisis, Australia’s economy – closely tied to China – appeared impervious, w..... Read more

Low Cost Investment Funds

The equity markets continue to change. It used to be that investors would buy shares directly or place their money with a funds manager, who would select stocks on their behalf. However, within the past few years the rise of passive investing using exchange-traded 'index-tracking' funds has changed the flow of money in the sharemarket. Exchange traded funds (ETFs) are transparent, easy to use and cheap. They are bought and sold on the sharemarket..... Read more

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