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 …

Corrections, gummy bears and grizzly bears in shares

Corrections, gummy bears and grizzly bears in shares Key points The pullback in shares could still have further to go but a deep (grizzly) bear market is unlikely as US, global or Australian recession are unlikely. Increasing US Federal Reserve openness to a pause in raising rates, the likelihood of a US/China trade deal sometime in the next six months and the plunge in oil prices all add to confidence that a grizzly bear market …

The pullback in shares – 7 things investors need to keep in mind

The pullback in shares – 7 things investors need to keep in mind Key points   The current pullback in shares has been triggered by a range of things – but most notably worries about rising US interest rates and the US/China conflict.    Shares may still have more downside, but we are of the view that it’s just another correction.   Key things for investors to bear in mind are that: corrections are normal; in …

Are shares expensive?

Are shares expensive? Key points Starting point valuations for shares matter a lot in terms of medium-term return potential and vulnerability to share market falls. Basically, the cheaper the better.   Developed market shares are not dirt cheap (and haven’t been for several years) but on most measures they are not at overvalued extremes. US shares are most at risk, but other markets are reasonable. Introduction Some commentators claim shares are way overvalued and so …

What is diversification?

What is diversification? Diversifying your investments will reduce their risks and volatility, but what does it involve? Often described as “not putting all your eggs in one basket”, diversification is crucial to reducing the volatility of investing. It’s about spreading your risks. We know that the markets for different asset classes – such as bonds, shares, property or infrastructure – can go up and down for many reasons, but they usually don’t move in exactly the same way. While one market …

Investment 101: what are your options?

Investment 101: what are your options? Nobody has a crystal ball to look into the future, but it’s important to have a general understanding of how investing works so you can build your assets for financial security. And it doesn’t hurt to know your options and be aware of potential associated risks and returns. Investment 101: what are your options? Risky business You may have heard the term “risk” mentioned when it comes to investing, but …

What are managed funds?

What are managed funds? You’ve probably heard friends or family say they have invested in managed funds, but what are these, how do they work and are they right for you? What is a managed fund? A managed fund is run by a professional fund manager, who pools together money from individual investors to invest in assets. There are many types of managed funds. Each will have a specific investment objective, usually focused on different asset …

What is an asset class?

What is an asset class? If you are starting to invest, you are sure to come across the term “asset class”. Don’t panic! You’ve probably heard of the different asset classes under their real names: cash, bonds, property and shares. An asset class is simply a group of investments that share similar characteristics, behave similarly in the market and are subject to the same rules and regulations. Most importantly, each asset class comes with different …

Italy is a worry – but 3 reasons not to be concerned about an Itexit

Italy is a worry – but 3 reasons not to be concerned about an Itexit Key points A populist coalition government in Italy is negative for Italian assets. Lingering uncertainty about a push for Italy to exit the Euro is likely a negative for the Euro too, though an Itexit and a Euro break up remain unlikely. Eurozone shares are likely to be relative outperformers globally thanks to more attractive valuations than the US, easier …

The pullback in shares – seven reasons not to be too concerned

09 February 2018 The pullback in shares – seven reasons not to be too concerned Key points The current pullback in shares has been triggered by worries around US inflation, the Fed and rising bond yields but made worse by an unwinding of bets that volatility would continue to fall. We may have seen the worst, but it’s too early to say for sure. However, our view remains that it’s just another correction. Key things …