Expect slower medium-term returns Key points The continuing decline in investment yields on the back of falling interest rates and bond yields has seen our medium term (5 to 10 year) return projections for a diversified mix of assets fall to around 4.8% pa. At least it’s still better than sub 1% bank deposit returns. The key for investors is to have realistic return expectations, allow that inflation is also low and focus on assets …
The countdown is on ahead of AMP’s 2020 University Challenge finals. This year’s event will be virtual, but as AMP Australia’s Rod Edge discusses, our five finalists will still face a challenging round of academic and performance-based tests. Original Author: Produced by AMP and published on 19/10/2020
Five areas set to benefit from this year’s Federal Budget This year’s Budget saw a big bag of measures announced to get growth accelerating in the Australian economy. Some people and sectors will feel its impacts more than others. Most groups in the Australian community look likely to benefit from this year’s Federal Budget in some way, assuming the measures are enacted (remember, the Budget is not legislation). You can read our detailed analysis of …
ECONOMICS & MARKETS OCT 20 – The impact of the 2020 federal budget on markets and the economy This year’s federal budget is one for the ages, as the Australian government plots the path to post-COVID recovery. Our senior economist, Diana Mousina, and co-portfolio manager, Dermot Ryan, talk through its key features and impacts for markets and the economy. Diana and Dermot will also be available to take your questions. By Diana Mousina Economist – Investment …
Econosights: The outlook for the global economy Key points Our forecasts anticipate a solid rebound in global GDP growth over 2H2020 across developed economies from re-openings after strict national lockdowns, better management of COVID-19 cases and continued policy support. A cyclical upswing is evident in US indicators of manufacturing, industrial production and housing. Vaccine developments provide upside and downside risks to our views. Our current growth forecasts assume that a vaccine is available by …
What do July’s strong building approval numbers say about Australia’s growth prospects? Building approvals in Australia surged by 12% in July, up 6.3% compared to a year ago. This was a much stronger result than consensus expectations of a fall in the order of 2%, and follows a run of better than anticipated numbers since April’s low point. As an important leading indicator of national construction activity, and with implications for the lending sector as …
Upgrade or Renovate? Are you running out of space or yearning for a change of scenery? In this episode of Q&, we consider the tough decision to either move somewhere else and buy something new or to renovate your existing home. AMP Capital Senior Economist Diana Mousina is joined by Tim Lawless, Research Director at property analytics company CoreLogic to discuss the pros and cons of renovating or moving home and what to look for …
Australian economic and fiscal update – record budget deficits, but more to come Key points The Government expects the federal budget deficit to peak at a record $184.5bn this financial year. That’s around 9.7% of GDP, its highest since the end of WW2. Ultimately, we expect it to be around $220bn as the Government unveils more stimulus & revenue recovers more slowly than projected by the Government. The budget and associated debt blowout is unlikely …
COVID-19: How long may your super savings take to recover? As investment market volatility continues, what does this mean for Australians’ retirement savings? The COVID-19 (coronavirus) crisis has caused uncertainty in many areas of life, not least on investment markets. Share prices have been fluctuating wildly as investors react to unfolding global events. From its high point in March the Australian All Ordinaries Index shed more than a third of its value before recovering some …
2019-20 saw poor returns – but it could have been much worse Key points 2019-20 saw a rough ride for investors as coronavirus hit resulting in small losses for well diversified investors. Key lessons for investors from the last financial year were to: maintain a well-diversified portfolio; timing market moves is hard; beware the crowd; turn down the noise; and don’t fight the Fed. With coronavirus risks still high, investment markets may see more short-term …
