Archive: February 23, 2016

Key Man Insurance

February 23, 2016

Key man insurance, sometimes referred to as key person insurance, provides cover against business losses that may be incurred as a consequence of the prolonged absence or death of the business owner or a key member of staff.

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Shares hitting bear market territory – the fear of fear itself or something more fundamental?

February 18, 2016
  • The malaise in financial markets is continuing with Australian shares now joining Europe, Japan and emerging markets in a bear market.
  • Global growth worries could drive more short term weakness. But in the absence of a US/global recession it’s hard to see a deep and long bear market.
  • The key for investors is to recognise that periodic declines in share markets are normal, that selling after big declines just locks in a loss, that dividend income from a well-diversified portfolio is little affected by share market volatility and that income flow from Australian shares is now very high relative to bank deposits.
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The plunging oil price – why and what it means

February 2, 2016
  • Oil prices are down more than 70% from their levels two years ago driven by a combination of a surge in supply relative to demand and a rise in the value of the $US.
  • Further weakness down to $US20/barrel is possible, but we are getting closer to the point where supply slows.
  • So far the negative impact on oil producers has predominated but ultimately it will be positive for growth.
  • The fall in petrol prices is saving the average Australian household around $14 a week versus two years ago.
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