The plunge in shares & flow on to super – key things for investors to keep in mind during times of market turmoil | AMP Capital

The plunge in shares & flow on to super – key things for investors to keep in mind during times of market turmoil Key points Share markets have fallen sharply in recent weeks continuing the plunge that started early this year due to worries about inflation, monetary tightening, recession & geopolitical issues including the invasion of Ukraine. It’s still too early to say markets have bottomed. This will weigh on super returns for this financial …

Econosights: Implications from Australia’s energy “crisis” | AMP Capital

Econosights: Implications from Australia’s energy “crisis” Key points Australian electricity and gas price increases will impact most consumers from 1 July 2022. We expect the increase in energy prices to add 1 percentage points to headline inflation. We now see headline inflation peaking at 7% in the September quarter and trimmed mean inflation peaking at 5.5% in the December quarter. There are no changes to our expectations for the cash rate from the lift in …

Another energy shock and the threat from higher petrol prices | AMP Capital

Another energy shock and the threat from higher petrol prices Key Points Oil prices have spiked on the anticipation and now reality of restrictions on Russian oil supply from the war in Ukraine. This is driving a sharp rise in petrol prices which will hit household spending power. Fortunately, there is an offset in Australia from the boost to national income from higher energy prices and commodity prices generally and scope for the Federal Government …

The escalation in Ukraine tensions – implications for investors | AMP Capital

The escalation in Ukraine tensions – implications for investors   Key Points Ukraine tensions have escalated with Russia ordering troops into Ukraine regions already occupied by Russian separatists. Share markets are at high risk of more downside on fear of further escalation and uncertainty about sanctions/gas supply to Europe. The history of crisis events shows a short term hit to markets followed by a rebound over 3 to 12 months. Given the difficulty in timing …

Market Update 18 February 2022 | AMP Capital

Market Update 18 February 2022 Investment markets and key developments over the past week Share markets have seen another volatile week being buffeted by waxing and waning fears of Russia invading Ukraine and fears of inflation and interest rate hikes. This left US, European and Japanese share markets down. Solid profit results helped protect the Australian share market, which was up slightly for the week, with gains in health, property and consumer staple shares offsetting falls …

Investment outlook Q&A – inflation, interest rates, Russia & Ukraine, the risk of a share crash, house prices and other issues | AMP Capital

Investment outlook Q&A – inflation, interest rates, Russia & Ukraine, the risk of a share crash, house prices and other issues Key Points Inflation will likely slow later this year but remain well above pre-pandemic levels over the medium term. Wages growth is likely to pick up to 3% this year. A Russian invasion of Ukraine risks a short term hit to shares followed by recovery over the next 3 to 12 mths. Australian home …

Corrections, gummy bears and grizzly bears in shares | AMP Capital

Corrections, gummy bears and grizzly bears in shares Key Points Shares have had a good rebound but could still fall further in the short term as risks remain high around monetary tightening and geopolitical tensions. However, a deep bear market is unlikely as US, global and Australian recessions are unlikely to be imminent. Introduction While shares have had a nice rebound from their January lows helped in part by some good earnings news – reversing …

The RBA ends bond buying – but remains “patient” on rates. We expect the first rate hike in August | AMP Capital

The RBA ends bond buying – but remains “patient” on rates. We expect the first rate hike in August   Key Points The RBA will end quantitative easing this month. While it now sees unemployment falling below 4% and higher inflation it is prepared to be “patient” for now. We expect rate hikes to commence in August. Ultimately, we see the cash rate rising to around 1.5 to 2% in the years ahead but it’s …

6 things to know about buy now pay later services

6 things to know about buy now pay later services Nearly 85% of financial counsellors in Australia have reported that half, most or all their clients now have some form of buy now pay later debt. Often branded the modern-day layby, buy now pay later services essentially offer the same thing, but you get the product (which could be anything from a new outfit, pub dinner or airline ticket) upfront. Below we explain what you …

Should I invest my home deposit? | Money & Life

Should I invest my home deposit? In the past year, national housing values have risen a whopping 22.2 per cent, adding around $126,700 to the median cost of a home. The rapid rate of growth has left many would-be homebuyers out in the cold. So if you’re saving for your first home, or looking to upgrade, what can you do? After another year of double digit growth, many first-time buyers have been left shaking their …