Why investors should go back to basics in a low-return world

Why investors should go back to basics in a low-return world Investors can be forgiven for wondering how they are going to continue to make money in financial markets. Cash rates globally are low and are likely to remain so, especially in Australia. This article looks at a ‘back to basics’ investment strategy suitable for a low-growth environment. The US Federal Reserve has been hiking cash rates. But despite talk of a post-QE (quantitative easing) …

Six forces driving Australian equity portfolio returns

Six forces driving Australian equity portfolio returns We are now in the late stage of the business cycle when a range of risks and opportunities are being thrown up at Australian equity investors. These reflect changes in fast-moving global markets, domestic policy choices and the evolving priorities of local businesses. These changes will create exciting opportunities for some Australian companies but throw up challenges for others. 1. The global economy is becoming more volatile The …

How to build equity in your home and use it to invest

How to build equity in your home and use it to invest Whether you’re looking to renovate, invest or pay off something big, home equity can be a valuable resource when it’s used correctly. The equity in your property can be a valuable resource, as it may allow you to secure finance to achieve your goals, whether they be investment or lifestyle oriented. If it’s something you’ve been thinking about, here are some pointers—the most …

Reverse mortgages – A solution to the asset rich, cash poor trap

Reverse mortgages – A solution to the asset rich, cash poor trap If you’re a home owner who falls into the “asset rich, cash poor” category, a reverse mortgage could hold appeal in retirement. Over the next 40 years an estimated seven million Australians are expected to start living off their super savings, but many simply won’t have enough to enjoy a comfortable lifestyle. The benefit of a reverse mortgage is that you can access money to …

Could last year’s strong equity returns keep on rolling?

Could last year’s strong equity returns keep on rolling? Aussie battler On the home front, the economic cycle in Australia is less advanced than in other developed economies. Activity remains subdued as housing investment moderates and consumers remain cautious on account of anaemic wages growth. Nonetheless, the preconditions for an improvement in growth are in place. Business confidence has improved and there is evidence of broad-based acceleration in business investment. At the same time, large …

Home equity – the $500 billion resource for seniors

Home equity – the $500 billion resource for seniors The latest round of figures showing rising home values in almost all our state capitals highlights how many Australian retirees could have a valuable resource at their fingertips. Older Australians, who may not have enjoyed the benefits of employer-paid super for their entire working life, can face the prospect of a lean retirement. However, one area where over-50s often have an advantage over their younger counterparts …