Category: Investments

Getting more from your 30’s and 40’s

March 22, 2016

If you’re in your thirties or forties, chances are you’re juggling a career, kids, a mortgage and home improvements – yet amongst these financial responsibilities lie opportunities to get more from your money

Read More

Diversify? Why Bother?

March 8, 2016

Over the years I have heard from many investors this very question – why bother diversifying? In their view, a portfolio of Australian shares, cash and term deposits does the trick. There are some perfectly good reasons for this.

Read More

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.
Read More

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.
Read More

A rough start to the year …seven reasons not to get too concerned though

January 15, 2016
  • Financial markets have started the year on a rough note as last year’s worries about China and global growth in the face of US monetary tightening continue.
  • This could drive more short term weakness. However, in the absence of US/global recession, which still seems unlikely, it’s hard to see a GFC style bear market.
  • The key for investors is to recognise that shares offer a higher return potential after sharp falls, selling after big declines just locks in a loss and that dividend income from a well-diversified portfolio is little affected by share market volatility.
Read More

Review of 2015, outlook for 2016 – more of the same

December 8, 2015
  • 2015 has been a messy year for investors as worries about China, emerging countries and the Fed caused volatility and uneven returns across asset classes. Australian shares continued to underperform.
  • 2016 is likely to see continued okay but uneven global growth, low inflation & easy monetary conditions. While the US is likely to raise rates gradually, other countries including Australia remain biased to further easing.
  • Most growth assets, including shares are likely to trend higher, resulting in reasonable returns. But volatility is likely to remain high as the easy gains are well and truly behind us.
  • The main things to keep an eye on are the Fed, China and the ongoing rebalancing of the Australian economy.
Read More
1234