Market Update 30 October 2020 Investment markets and key developments over the past week Global share markets mostly fell again over the past week on the back of rising new coronavirus cases in Europe and the US, new lockdowns in Europe, signs of a tightening election in the US raising the prospect of a contested election and the absence of any progress towards a pre-election fiscal stimulus in the US. Reflecting the week global lead …
Five reasons why this downturn and subsequent recovery are different – and where are we in the Australian recovery now? Key points This economic downturn and recovery differs from those of the past in that: the downturn was driven by a government shutdown; fiscal and monetary support has been faster and bigger; forced asset sales have been headed off; it’s dependent on containing coronavirus; and it’s seeing more rapid structural change. As a result, …
Three key habits of the financially secure Financial wellness describes how we evaluate our finances and cope with any related stress. It can be a significant factor that affects our overall psychological wellbeing. AMP’s recent financial wellness research found three financial habits that people who are financially secure have in common: They save money regularly They pay off their credit card debt They avoid using layby and buy now, pay later (BNPL) services. We explore each of …
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 …
Create an 8-week Christmas savings plan The sooner you start saving for Christmas, the better. But you can do it in just eight weeks – even if you have a tight budget in the lead-up to this year’s festive season. Here’s how to develop a plan to save money and reach your holiday goals. Fairy lights twinkling, seafood on the barbie, gifts being wrapped and Michael Bublé crooning in the background – Christmas can …
Financial wellness in 2020 – how does yours compare? Financial wellness is how you feel about your money. It can affect your overall wellbeing and other areas of your life, such as work and family. So, while money isn’t the be-all and end-all, how you feel about it is pretty important. Since 2014, AMP has been commissioning research1 into the financial wellbeing of Australians and has developed the Financial Wellness Index. It measures a person’s satisfaction …
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 …
Majority of working Aussies to benefit from personal income tax cuts Tax cuts proposed in the recent Federal Budget were passed in parliament on Friday 9 October, and you might see some of the benefits before Christmas. The government has brought forward tax cuts originally planned for 1 July 2022 and backdated them to 1 July 2020. Plus, low and middle-income earners are still able to benefit from existing tax offsets. Has my marginal tax …
How can I make my retirement dream a reality? What does your retirement dream look like – spending time on your hobbies? Seeing the grandkids more often? Maybe pursuing a passion, or travelling? According to AMP financial adviser John Dani, the people who are most content and happy in retirement all have this one thing in common – a well-defined purpose for their golden years. Mr Dani’s worked with hundreds of people over the last …
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 …
