The US Federal Reserve starts raising interest rates – implications for Australia and investors | AMP Capital

The US Federal Reserve starts raising interest rates – implications for Australia and investors Key Points The Fed has finally joined other central banks in raising interest rates, taking the Fed Funds rate from a range of 0-0.25% to 0.25-0.5%. This was well flagged and reflects the tight US labour market and high inflation. The Fed flagged another six rate hikes this year and the start of quantitative tightening soon. First rate hikes in a …

Should I still change jobs despite COVID-19? | Money & Life

Should I still change jobs despite COVID-19? With pandemic lockdowns in place across much of the country, is now still a good time to look for a new job? After falling to a 10-year low in June, the unemployment rate is again tipped to edge higher. So what does the future hold for Aussie workers? Go back a month or two and you’d be forgiven for thinking we were on the fast track to pay …

The return of geopolitical risk? – what to watch over the remainder of 2021 | AMP Capital

The return of geopolitical risk? – what to watch over the remainder of 2021 Key points Geopolitical issues generate much interest but don’t necessarily have a significant impact on markets. But geopolitical risks are higher than prior to the GFC reflecting three big themes: a populist backlash against economic rationalist policies; the falling relative power of the US; and the polarising impact of social media. After a lull following the transition to President Biden, key …

What does it really cost to raise kids? | Money & Life

What does it really cost to raise kids? We often hear that raising kids is expensive, but just how much will it cost you over the first five, 10 or 20 years? Here’s a closer look at the costs of each stage of life. If you’re thinking about having kids, or have already taken the plunge, you might be wondering how much you’ll need to budget for their welfare. There are a few different answers …

Econosights: The importance of domestic tourism for the Australian economy

Econosights: The importance of domestic tourism for the Australian economy   Key points Domestic tourism is worth more to the Australian economy (at over 4% of GDP) compared to how much international tourists bring into Australia (at 1.3%). And, Australian spending on overseas trips is worth twice the value of international tourist spending within Australia. So, there is potential to offset the loss of activity from international tourism (especially if the borders stay closed through …

1 million enough to retire

Is $1m enough to retire? A million dollars is a figure that’s often cited as the amount you need to retire. But while $1 million doesn’t go as far as it used to – it only goes slightly above the median house price in Sydney1 – for many people it still sounds like an impossibly large amount of money to save. In reality, there’s no set figure you need to have accumulated in savings, super, real …

Five reasons why this downturn and subsequent recovery are different – and where are we in the Australian recovery now?

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, we …

Five reasons why this downturn and subsequent recovery are different – and where are we in the Australian recovery now?

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, …

Many Aussies in the dark about retirement

Many Aussies in the dark about retirement Whether retirement is a long way into the distance, or just peeking over the horizon, recent research1 shows half of us aren’t sure we’ll have enough money to retire when we want, or even how much money we’ll actually need. There’s always been a lot of unknowns when it comes to retirement but throw a global pandemic into the mix, and we’re feeling more uncertainty than ever before. Things …

Australia’s “eye popping” budget deficit and public debt blow out – can it be paid off? Does it matter? | AMP Capital

Australia’s “eye popping” budget deficit and public debt blow out – can it be paid off? Does it matter?   Key points The Australian Federal budget next month will likely see a further blow out in the budget deficit due to the ongoing hit to tax revenue & more stimulus. We expect an “eye popping” 2020-21 deficit of around $230bn. Stepped up economic reforms will help grow the economy but are unlikely to drive a …