Econosights: The impact of economic shocks on inflation

  Econosights: The impact of economic shocks on inflation Key points COVID-19 has caused a big change in consumer spending patterns. In developed countries, demand for goods has generally gone up but services demand has collapsed. Changes in demand along with some supply constraints have caused an increase in goods prices while prices for services have been weaker. Consumer inflation data uses consumer spending baskets from prior years to construct quarterly price changes. However, these …

September job figures make the case for further monetary easing

September job figures make the case for further monetary easing After a stronger-than-expected performance in August, September employment numbers exceeded expectations for the second month in a row, falling by 29,500 jobs as opposed to consensus estimates of a 40,000 drop. Nonetheless, this month’s decline in employment figures after three months of growth suggests we’re now on track to see slow growth in employment and a rising participation rate. We expect the headline unemployment rate …

Market Update 23 October 2020

Market Update 23 October 2020   Investment markets and key developments over the past week Global share markets were mixed over the last week being buffeted again by waxing and waning stimulus prospects in the US and ever rising numbers of new coronavirus cases. US and Eurozone shares fell but Japanese and Chinese shares rose slightly. Reflecting the messy global lead Australian shares fell slightly as a rise in bond yields pushed down utilities, telcos and …

Expect slower medium-term returns

Expect slower medium-term returns Key points The continuing decline in investment yields on the back of falling interest rates and bond yields has seen our medium term (5 to 10 year) return projections for a diversified mix of assets fall to around 4.8% pa. At least it’s still better than sub 1% bank deposit returns. The key for investors is to have realistic return expectations, allow that inflation is also low and focus on assets …

Q&AMP Live – Property market update with Shane Oliver, October 2020

AMP Chief Economist Shane Oliver delivers the October 2020 economic market update with particular focus on what’s happening with property investments. Dr Oliver covers topics including ‘economic and investment outlook’, the ‘impact of coronavirus on consumer markets’ and delves into the ‘positives and negatives of the housing market’. For regular updates an insight into investing and finance, please review our insights section: https://www.amp.com.au/insights Original Author: Produced by AMP and published on 16/10/2020 Source

Five areas set to benefit from this year’s Federal Budget

Five areas set to benefit from this year’s Federal Budget This year’s Budget saw a big bag of measures announced to get growth accelerating in the Australian economy. Some people and sectors will feel its impacts more than others. Most groups in the Australian community look likely to benefit from this year’s Federal Budget in some way, assuming the measures are enacted (remember, the Budget is not legislation). You can read our detailed analysis of …

Nine keys to successful investing – and why they are more important than ever in the face of the coronavirus shock

Nine keys to successful investing – and why they are more important than ever in the face of the coronavirus shock Key points Even in good times successful investing can be stressful. For this reason, it’s useful for investors to keep a key set of things – call them rules – in mind. The key rules I think are: make the most of compound interest; don’t get thrown off by the cycle; invest for the …

Market Update 09 October 2020

Market Update 09 October 2020 Investment markets and key developments over the past week Share markets rose solidly over the past week on hopes for a stimulus deal in the US, whether before the election or after if there is a Democrat clean sweep. Australian shares benefitted from the positive global lead but also from fiscal stimulus in the Budget with the ASX seeing strong gains across all sectors but particularly in energy, financial, IT, material …

Oliver’s Insights: Federal Budget 2020-21 overview

Oliver’s Insights: Federal Budget 2020-21 overview The 2020-21 Australian Budget – spend, spend, spend as the focus remains on recovery and jobs, jobs, jobs Key points The Government now expects the Federal budget deficit to peak at a record $213.7bn this financial year. That’s around 11% of GDP, its highest since the end of WW2. The risk is the deficit will be worse at around $230bn. Key measures include earlier tax cuts, massive tax breaks …

Four signs Aussie equity markets look set for a strong finish to 2020

Four signs Aussie equity markets look set for a strong finish to 2020   The government has signalled that business will be a driving force behind Australia’s recovery efforts, and we think this will be good news for domestic shares as we charge towards 2021. This year has been wild for share markets globally, but the world is learning how to cope with COVID-19 and business is learning how to manage through. Though nothing is …