December
December is here and as the temperature rises the countdown to the Christmas break begins. But it appears at least one Australian is determined to ‘chill’. When Reserve Bank governor Glenn Stevens was asked recently about the possibility of an interest rate cut he said: “We’ve got Christmas, we should just chill out …come back … and see what the data says.” The markets took that as a no, for December at least.
Mortgage interest rates are still at or near their historic lows in Australia but there are signs that the next move will be up. The big four banks have already lifted their standard variable home loan rates and, while it is difficult to predict future interest rate movements, it pays to be prepared. In this newsletter we provide you with some practical strategies to help minimise the impact of any future rate rises.
We also look at life insurance, which is one area of life where a ‘she’ll be right’ attitude could end in tears. So let’s bust a few common insurance myths…
Our final article has some great tips to set yourself up for success in 2016. The end of the year is a good time to examine your hopes and dreams for the year to come and put some strategies in place to work towards achieving them.
As always, if you would like to discuss the contents of this newsletter don’t hesitate to call our office.
November
It’s November and that can mean only one thing – all eyes turn to Flemington for the race that stops the nation. But financial markets will keep one eye on their screens for the Reserve Bank of Australia’s monthly decision on interest rates.
Volatility has been the name of the game on global investment markets in 2015, with prices for shares and other assets swinging wildly from one moment to the next. It’s no wonder some investors decide it’s too risky to go back into the water. But is volatility the same as risk? In this month’s snapshot we examine the difference. We also look at the different types of risk in the market and how you can not only manage risk but profit from it.
As always, if you would like to discuss the contents of this newsletter don’t hesitate to call us.
October
October is here and it promises to be a month of thrills and spills for footy fans, from the AFL and NRL finals to the Rugby World Cup. While excitement builds on the field, local investors could be forgiven for wishing they lived in less interesting times.
There has also been a lot of attention lately in the media and in our national parliament about Australia’s free trade agreement with China. Most commentators agree that it will be beneficial for Australian exporters and consumers but there are some critics too. In this snapshot we take a look at free trade agreements to find out what they are, the benefits of the many agreements Australia has already entered into and the potential pitfalls, if any.
As always, if you would like to discuss the contents of this newsletter don’t hesitate to call us.
September
Spring is here and not a moment too soon! As the weather warms up it’s the signal to pack away your winter woollies, get back into the garden or start a new fitness program and start planning your summer holidays.
It has been hard to avoid media coverage of recent events on global stock markets. What started as a massive sell-off in Shanghai quickly spread to other global markets including Australia. In this snapshot we look at the causes of the current market volatility and the implications for local investors. The evidence suggests that Australian shares are not over-valued and that investors who hold their nerve and focus on value rather than price will come out the winners.
Our second article looks at options for where to get the best returns on your savings, given our historically low interest rates. A hint – it’s not the bank.
And with the holiday season fast approaching we give you some ideas for fun family holidays that won’t break the bank. Improved facilities and a falling Aussie dollar are behind the growing popularity of camping and caravanning getaways in our own backyard.
As always, if you would like to discuss the contents of this newsletter don’t hesitate to call our office.
August
The recent popping of China’s sharemarket bubble made news headlines around the world. After climbing 150 per cent in the year to June, prices collapsed 30 per cent in the space of four weeks. The fact that this happened while global markets were already spooked by the possibility of a Greek exit from the Eurozone just added to investor’s worries. In this snapshot we examine the causes of China’s recent sharemarket turmoil and what it means for Australian investors.
July
Australian and overseas investors have been pushing up house prices in Sydney and Melbourne sparking talk of a property bubble. The Governor of the Reserve Bank says the Sydney property market is crazy, adding to the national debate about housing affordability, especially for first homebuyers. While only parts of the country are in bubble territory, some of the solutions being suggested have the potential to affect all property investors, wherever they live.
As always, if you would like to discuss the contents of this article or how it might affect your investment strategy, do not hesitate to call us.
June
Winter is here, the perfect time to rug up and plan a mid-year break to the snow or to warmer climates. But before you head off, June is also the month to take advantage of any last minute opportunities to reduce your tax bill before the end of the financial year so check out our tax tips in our first article.
Given that the end of the financial year is fast approaching, if you’ve been thinking about income protection insurance, this is the time to act. Not only will it protect your most important asset – your ability to earn an income – but you may be able to pre-pay 12 months’ premiums in June and claim a tax deduction.
Getting a driver’s licence used to be a rite of passage, but Gen Y is shunning car ownership. Our final article looks at the growing appeal of ride sharing services and other practical alternatives to owning your own set of wheels.
As always, if you would like to discuss the contents of this article or how it might affect your financial situation, don’t hesitate to call us
Budget Special
In what has been dubbed the ‘have a go’ budget, Treasurer Joe Hockey has moved to restore the confidence of ordinary Australians in the country’s growth prospects. The big winners are small business, families, farmers and job-seekers, with spending measures designed to stimulate spending, investment and growth.
There is also a big lift in spending on national security. Retirees and investors will be relieved that the government has repeated its promise not to make any changes to superannuation in this term of government.
Despite the new spending commitments, the government is forecasting a lower-than-expected budget deficit in 2015-16.
As always, if you would like to discuss the contents of this article or how it might affect your financial situation, don’t hesitate to call us
May
The average dividend yield on Australian shares was 4.16 per cent at the end of March and more than 8 per cent for some high-yielding stocks. While yields have fallen in recent years, they are still streets ahead of traditional income-producing investments.
This could be a great time to review your investments and superannuation asset allocation.
If you would like to discuss any of the points in this article then please get in touch.
April
We Australians like to think we live in the Lucky Country, but do the hard economic numbers stack up? The recent Intergenerational Report warned that radical changes are needed if Australia hopes to put its budget on a sustainable footing in the decades ahead. In this snapshot we weigh up Australia’s economic performance and find plenty to smile about.
As always, if you would like to discuss the contents of this article or how it might affect your investment strategy, don’t hesitate to call us.
March
Summer is over and the days should begin to cool down now that autumn is here. We hope you enjoy our March articles, the first of which looks at deflation. Low interest rates and discounting of petrol and household items are good for consumers. But falling prices can lead to deflation, with implications for the global economy and investors.
We also examine the price of gold which is staging a comeback as investors seek safe havens from global economic uncertainty and currency fluctuations. Falling oil prices have also cut the cost of gold mining operations, adding fresh lustre to Australian gold stocks.
Living to 100 is likely to be the norm for a good many Australians, but living longer is only worthwhile if you can enjoy it.
Our final article provides tips on being a happy and healthy centenarian.
February
Local investors with well-diversified portfolios had plenty to be pleased about in 2014. Global shares and bonds and Australian residential property were star performers in a year that was full of surprises. The size of the fall in commodity prices took the market by surprise, as did the continued strength in the bond market. In this snapshot we review the year that was and look ahead to the issues with the potential to impact portfolios in 2015.
As always, if you would like to discuss the contents of this article or how it might affect your investment strategy, don't hesitate to call us.
January
Hi
A new year is already underway and chances are you have already made a few resolutions – like starting that health kick. But what about your financial health? In this snapshot we hope to provide you with some simple tips to boost your wealth, beginning with a long hard look at what you want to achieve in 2015 and beyond.
As always, if you would like to discuss the contents of this article or how it might affect your investment strategy, don't hesitate to call us.