December
Summer is well and truly here and our thoughts are turning to Christmas and the summer holidays. Many of you will be heading to the beach, while others will taking advantage of the summer break to travel overseas.
If you are heading overseas, no doubt you are counting the cost of the falling Australian dollar. There is plenty of upside to the weaker currency though, as we explain in our first article which looks at currency winners and losers on the local sharemarket.
We also look at different forms of life insurance, and the importance of having the right level of cover as you move through life.
Are you planning to keep your mobile switched on over the holidays? Do you feel stressed at the thought of never totally switching off? Read our final article for some simple stress-busting tips.
You can read our Summer newsletter here.
Snap Shot November
The iron ore price has taken a dive this year and so have the share prices of Australia’s biggest producers, BHP Billiton, Rio Tinto and Fortescue Metals Group. So why are our big miners ramping up production and flooding the market with cut-price iron ore? In this snapshot we examine the reasons behind the iron ore price war and the potential opportunities for patient investors.
Snap Shot October
Superannuation has been in the news lately, along with talk about Australia being a country that rewards lifters, not leaners. After the recent government decision to postpone increases in compulsory superannuation, Australians will certainly have to do more of the heavy lifting to build their retirement nest egg. That’s because the planned increase in the compulsory Superannuation Guarantee from the current 9.5 per cent of gross salary to 12 per cent has been delayed by six years to 2015-26. In this snapshot we focus on strategies that will put you in the driver’s seat and help you achieve the retirement lifestyle you deserve. As always, if you would like to discuss your savings strategy, don’t hesitate to give us a call.
Snap Shot September
Armed conflicts in oil producing regions of the Middle East and Ukraine have dominated the news all year, along with fears about disruption to oil and gas supplies. In the past, this has meant just one thing for consumers - higher prices at the petrol pumps. But not this time, in fact petrol prices have been falling. We take a look at the shift taking place in the global oil market as new sources of supply from shale oil and other alternatives lessen our dependence on traditional suppliers.
Snap Shot August
To sell or keep the family home? That is the big question for many families when Mum or Dad move into aged care. Recent changes to the way residents' income and assets are means-tested have altered decision making about whether it is better to sell the home or rent it out to help cover the cost of care. The numbers will be different for everyone so getting timely financial advice will be more important than ever.
If you would like to discuss the issues raised in this article or your financial preparations for a move into aged care accommodation, don't hesitate to call us.
Snap Shot End of financial Year 2014
Winter is setting in and another financial year has drawn to a close. There is no better time to rug up, take stock of your finances and make plans for the year ahead.
As our end of financial year economic review reveals, it is hard not to reach the conclusion that the Australian economy is in good shape. The mining investment boom has morphed into a mining production boom, while a surge in residential construction is helping to lift activity in the non-mining economy.
Investors also have plenty to smile about, with double-digit returns from shares and residential property in the year to June. The IMF forecasts global growth of 3.6 per cent in 2014, which should provide further support for the local economy.
If you would like to talk about how this economic review affects you, don't hesitate to call us. In the meantime, we hope you find this review useful and informative.
Snap Shot June 2014
High frequency trading has been getting a lot of media attention lately, following the publication of Michael Lewis’s latest book, Flash Boys. In it, he explains how traders are using high-speed computers to get a jump on ordinary investors in financial markets. While it is important for investors to understand what the trend means for them, it is also important to recognise that the fundamentals of successful long-term investing have not changed.
If you would like to discuss the best way to beat short-term traders and win the investment game, don’t hesitate to give us a call.
Federal Budget Analysis 2014
Snap Shot April 2014
It's as if every second "Gen Y" kid these days owns or wants to own some Bitcoins. So what's all the hype about this high-risk, volatile Bitcoin so called "investment" that provides no dividends? Are they the "new" gold? While the mainstream media might love a new concept to excite it's readers, no one can argue Bitcoins remain high risk and need to be well understood.
As always, if you would like to discuss the contents of this article don’t hesitate to call us.
Snap Shot March 2014
There has been a lot of press lately about the US Federal Reserve’s decision to reduce quantitative easing (otherwise known as “tapering” the printing of money). After talking to some of our clients, we realised many people often don’t understand what this actually means. It is a really interesting issue because the concept of printing money occurred in Germany after the First World War, but the end result compared to today could not have been more different.
In this snapshot we put the spotlight on the key issues around governments printing money, why the US Federal Reserve implemented this approach over the last few years, and the possible consequences for Australia now this strategy is being unwound.
As always, if you would like to discuss the contents of this article or how this might affect your investment strategy don’t hesitate to call us.
Snap Shot February 2014
While investors had many reasons to be fearful at the start of 2013 with the backdrop of the US fiscal cliff, Eurozone debt crisis and a China slowdown, sharemarkets delivered some of the best investment returns in years.
Looking towards 2014, the US Federal Reserve has all but declared its hand for 2014 by continuing a slow and steady tapering of monetary stimulus. The only shock has been the size of the depreciation in emerging market currencies.
In first world economies, a combination of low global inflation and low interest rates has allowed investment confidence to remain positive. The housing recovery in Australia combined with strong sharemarket returns from 2013 provide a solid foundation for investors and the corporate sector heading into 2014.
As well as reviewing last year’s performance, this February Snapshot also looks at what to expect from the world’s major markets in 2014.
We hope our analysis gives you insight into where the economy and sharemarkets are heading. Please call us if you would like to talk about how they relate to your strategy in the coming year.
Snap Shot January 2014
Trying to balance the credit card and determining exactly where the money was spent is a reflective ritual many of us go through at this time of the year. It's no surprise online shopping will fair more significantly this year compared to last.
This raises the question, are Australian ASX listed retailers looking at this as an opportunity or a threat? How significantly are domestic and overseas e-tailers impacting the Australian retail landscape and economy?
In our January snapshot, with strong sales forecasts for the holiday season by traditional retailers, we look at whether online sales represent the big threat we're led to believe?
If you would like to review how your portfolio is positioned for 2014 please don't hesitate to call us.