The top 10 lifestyle costs draining Aussies of cash Six out of the top ten categories relate to just two things. Can you guess what they are, and could you be cutting back? As a nation, Australians aged 18 and over spent approximately $145 billion on lifestyle costs last year, with the average spend per person around $7,800, according to research by comparison site Mozo1. While clothing and footwear took out the number one spot …
Are Australian households more vulnerable than we think? A lot has been said and written about Australia’s household debt levels and possible implications on the banking system and the economy more broadly. But could Australian households be even more constrained than the headline numbers are suggesting? Michele Bullock, the Reserve Bank of Australia’s Assistant Governor, highlights the stresses households will likely be facing well before any rise official interest rate materialises in this speech. Bullock points …
The “gradually” maturing investment cycle – what is the risk of a US recession? Key points With inflationary pressures starting to rise in the US the global investment cycle is starting to get more mature. This is likely to mean a further rise in bond yields and more share market volatility. However, there is still little sign of the sort of excesses that precede economic downturns, profit slumps and major bear markets suggesting that we …
3 simple steps to create a budget Nearly two out of five Aussies believe budgeting is too much effort, but these quick tips could make it a simpler task. Around 75% of Aussies will be going into 2018 with no specified budget, according to a survey by AMP, which—reality check—is probably going to make achieving financial goals, whether it’s getting out of debt, going on that long-overdue holiday, or saving for something big, a little tricky. Despite …
Environmental, Social and Governance (ESG) Wrap Welcome again to the Environmental, Social and Governance (ESG) Wrap, where our team share the latest ESG issues in the media and their implications on investment.This month the key ESG issues making headlines are: Retail: Are Australian retailers ready for slavery laws? Oil & Gas: Cities across the US sue fossil fuel companies for contributions to climate change Grounds for ditching the daily coffee? (Yes, we did just use …
What if interest rates rise faster than expected? The US Federal Reserve may raise interest rates twice as often as the market expects in 2018, according to AMP Capital Head of Investment Strategy and Chief Economist Shane Oliver. “This year we think the Fed is going to raise rates more than the market is allowing for,” says Oliver. “Market expectations are factoring about two and a half hikes and we actually think they will do …
Australian’s love affair with debt – how big is the risk? Key points Household debt levels in Australia are high compared to other countries and still rising. The rise is not as bad as it looks because its been matched by rising wealth and debt servicing problems are low. However, this could change as interest rates rise and if home prices fall sharply. The trigger for major problems remains hard to see but its worth …
The outlook for real assets in 2018 Adjustments to monetary policy by Central Banks globally, along with the technological change sweeping through and changing the shape of industries, emerge as the two pervasive themes likely to define real asset valuations in 2018 and beyond, according to leading real estate and infrastructure experts. The favourable outlook for real assets is set to continue in 2018, with interest rates globally set to stay at historically low levels, …
Equities riding on fear not fundamentals “The only thing we have to fear is fear itself,” said Franklin D Roosevelt at his inauguration as US President in 1933. I think “the only thing we have to fear is the fear index itself” is a better description of where investors are at right now. It’s been a wild ride on Wall Street and beyond of the past week – the worst in two years for the …
5 ways to keep a cool head in a falling share market Despite concern, falling share prices are not necessarily a sign of a mild or major bear market situation, according to Dr Shane Oliver. The share market correction many people are talking about at the moment is causing concern for a number of investors, including those accumulating super and drawing money from their super savings, which is understandable given the rapid falls we’ve seen …
