Ways to invest your money

Ways to invest your money If you’re interested in seeing what your options are outside of investment property and super this article explores some of the different investment options available. Cash investments If you put your money into cash investments (including savings accounts and term deposits), the returns will often be lower in comparison to other investment products. However, these types of investment options typically provide stable, low-risk income in the form of a regular …

Australia slides into a “per capita recession”

Australia slides into a “per capita recession” Key points Australian growth slowed even more in the December quarter. Growth may bounce back a bit this year, but the housing downturn will likely constrain it to around 2- 2.5%.   As a result, unemployment is likely to drift up and wages growth and inflation remain lower for longer.   The RBA is on track to cut rates this year and the housing downturn will likely see …

Five charts and a table that are critical to watch regarding the global economy and markets this year

Five charts and a table that are critical to watch regarding the global economy and markets this year Key points After a strong rebound since December share markets are at risk of a short-term pull back. However, despite this we see this year as being a decent year for share market returns.   Five key global charts to watch as to whether this will be the case are: global business conditions PMIs; global inflation; the …

Three positive signs for global growth in 2019

Three positive signs for global growth in 2019 Many investors in 2018, particularly at the end of the year, were worried the global economy was slowing and that it might slide into recession. The concerns contributed to the weakness in share markets at the end of the year, along with a bit of uncertainty about the US Federal Reserve’s rate hike agenda and worries about the US-China trade war. But our view is that 2019 …

Why growth in China is unlikely to slow too far and why it needs to save less and spend more

Why growth in China is unlikely to slow too far and why it needs to save less and spend more   Key points China’s economy is slowing but not collapsing as the services sector holds up. A further slowing is likely in the short term, but policy stimulus is likely to see growth improve in the second half, giving 2019 growth of 6.2%.   Concerns about China’s rapid debt growth are overstated given it reflects …

2019 – a list of lists regarding the macro investment outlook

2019 – a list of lists regarding the macro investment outlook Key points Despite continued volatility, 2019 is likely to be better for diversified investors than 2018 was.   Recession is unlikely and so too is a long and deep bear market in shares.   Watch the US trade war, the Fed, global business conditions indicators, Chinese growth, politics and the Sydney and Melbourne property markets. Introduction 2017 was a great year for well diversified …

The Australian economy 2019 – house prices, growth and interest rates

The Australian economy 2019 – house prices, growth and interest rates   Key points Australian growth has slowed again. The housing cycle downturn and its impact on the economy will likely see growth constrained to around 2.5-3%.   LAs a result, spare capacity is likely to remain significant, keeping wages growth and inflation low.   The RBA is likely to cut rates in 2019 and the housing downturn will likely see Australian shares continue to …

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 …

Weekly Market Update 10 August 2018

Weekly Market Update 10 August 2018 Investment markets and key developments over the past week Share markets mostly rose over the last week as economic and profit news was mostly favourable and there was nothing really new on the trade war front. Bond yields generally fell slightly but there wasn’t a lot in it. Commodity prices were mixed with oil down, metals flat to up a bit and iron ore up. The $US pushed higher and …

How are Australia’s states and territories tracking?

How are Australia’s states and territories tracking? An end to the fall in mining investment is helping to stabilise growth in Australia’s mining states and territories (WA, Qld and NT to a lesser extent) while a slowing housing sector is starting to act as a drag on NSW and Vic. Tas is benefitting from a lift in population growth and housing “refugee” demand from Sydney and Melbourne. Growth in SA and the ACT has been …