Why

Why super and growth assets like shares really are long term investments

Download PDF version Why super and growth assets like shares really are long term investments Key points – While growth assets like shares go through bouts of short-term underperformance versus bonds and cash, they provide superior long-term returns. So, it makes sense that superannuation has a high exposure to them. – The best approach is to simply recognise that occasional sharp falls in share markets and hence super funds are normal and that investing …

FinancialPartners 21/08/2024 20/08/2024 Blog / E - Economics / E - Financial Snapshot / E - Insights Papers / E - Markets & Investments / E - Oliver's Insights / FP - Financial Planning and / Are / assets / growth / investments / Like / Long / really / Shares / super / Term / Why

The five reasons why the $A is likely to rise further – if recession is avoided

The five reasons why the $A is likely to rise further – if recession is avoided Key points – After a soft patch since 2021, there is good reason to expect the $A to rise into next year: it’s undervalued; interest rate differentials look likely to shift in favour of Australia; sentiment towards the $A is negative; commodities still look to have entered a new super cycle; and Australia is a long way from the …

FinancialPartners 10/07/2024 10/07/2024 Blog / E - Economics / E - Financial Snapshot / E - Insights Papers / E - Market Update / E - Market Watch / E - Markets & Investments / E - Oliver's Insights / FP - Financial Planning / Informed Market Update $A / avoided / Five / further / if / Is / Likely / Reasons / Recession / rise / The / To / Why

Econosights – Why is inflation declining globally but not in Australia?

Senior Economist Diana Mousina highlights the three main reasons why inflation is declining globally but not in Australia

FinancialPartners 07/02/2023 06/02/2023 Blog / E - Economics / E - Insights Papers / E - Market Update / E - Oliver's Insights / FP - Financial Planning 2022 / Australia / below / but / declining / early / Econosights / Global / Globally / Inflation / Introduction Throughout / most / not / peers / running / Why

Econosights: Three reasons why Australia is more vulnerable to higher rates | AMP Capital

Econosights: Three reasons why Australia is more vulnerable to higher rates Key points Australian consumers are more vulnerable to interest rate rises compared to our global peers because of : 1) higher levels of household debt; 2) a higher share of variable rate mortgages and even those on fixed-loans only fix for a relatively short period of time; and 3) a large share of recently fixed mortgages are due to expire in the second half …

FinancialPartners 21/09/2022 21/09/2022 Blog / E - Economics / E - Insights Papers / E - Market Update / E - Oliver's Insights / FP - Financial Planning Australia / compared / consumers / Econosights: Three / harder / higher / impact / Interest / more / rate / rates / Reasons / rises / some / Vulnerable / Why / Will

Australia’s productivity challenge – why it matters and what to do about it | AMP Capital

Australia’s productivity challenge – why it matters and what to do about it Key points The last twenty years have seen a sharp slowdown in productivity growth in Australia from over 2% pa to around 1.2% pa. This has adversely affected growth in living standards and real wages. It will adversely affect asset class returns if allowed to persist. Policies to boost productivity growth include: labour market reforms; more skills training; ongoing high levels of …

FinancialPartners 14/09/2022 14/09/2022 Blog / E - Economics / E - Insights Papers / E - Market Update / E - Oliver's Insights / FP - Financial Planning About / amongst / Australia / Australia’s / been / challenge / economists / Makers / matters / policy / Productivity / recent / slowdown / topic / What / Why / years

Home price falls accelerated in August – three reasons why this property downturn will likely be different | AMP Capital

Home price falls accelerated in August – three reasons why this property downturn will likely be different Key points Australian home prices fell another 1.6% in August and are now down by 3.5% from their high. Rising mortgage rates are the main driver and there is likely more to go. We continue to expect a 15-20% top to bottom fall in home prices out to the second half of next year, followed by a …

FinancialPartners 01/09/2022 09/09/2022 Blog / E - Economics / E - Insights Papers / E - Market Update / E - Oliver's Insights / FP - Financial Planning accelerated / August / been / dangerous / described / different / downturn / falls / Four / Have / Home / Likely / most / Price / property / Reasons / this / Three / Time / Why / words

Investment cycles – why investors need to be aware and wary of them | AMP Capital

Investment cycles – why investors need to be aware and wary of them Key points Cyclical fluctuations are a key aspect of investment markets. Most are driven by economic developments but are magnified by swings in investor sentiment. Of particular importance are the long-term cycles which are often driven by waves of innovation and the 3-5 year business cycle. Right now, we are still in the downswing phase of the business cycle and may have …

FinancialPartners 11/08/2022 11/08/2022 Blog / E - Economics / E - Insights Papers / E - Market Update / E - Oliver's Insights / FP - Financial Planning aware / cycle / cycles / Investment. cycles / investors / Life / Need / night / part / seasons / Them / tides / wary / weather / whether / Why

Five reasons why the RBA cash rate is likely to peak (or should peak) with a 2 in front of it rather than a 3 (or more) | AMP Capital

Five reasons why the RBA cash rate is likely to peak (or should peak) with a 2 in front of it rather than a 3 (or more) Key points The RBA has hiked the cash rate by another 0.5% taking it to 1.85% and signalling more hikes ahead. We see the cash rate peaking around 2.6% which is at the low end of market and economists’ expectations. Market & consensus expectations for rates to rise …

FinancialPartners 02/08/2022 02/08/2022 Blog / E - Economics / E - Insights Papers / E - Market Update / E - Oliver's Insights / FP - Financial Planning 185% Original / 2 / 3 / again / Author Produced / Capital / cash / expected / Five / front / In / increased / Likely / more / peak / rate / rather / RBA / Reasons / taking / than / Why / widely

Inflation in the 70s – baby boomer fantasy or nightmare? Why central banks must focus on getting inflation back down | AMP Capital

Inflation in the 70s – baby boomer fantasy or nightmare? Why central banks must focus on getting inflation back down Key points The high inflation of the 1970s was bad for economies and bad for investment returns. The long-term downtrend in inflation and interest rates is likely over removing a tailwind for investment returns. But a return to sustained 1970’s levels of inflation appears unlikely. Introduction I grew up in the 1970s and it …

FinancialPartners 14/07/2022 14/07/2022 Blog / E - Economics / E - Insights Papers / E - Market Update / E - Oliver's Insights / FP - Financial Planning 14/07/2022 / 1970s / 70s / Author Produced / Baby / Back / Banks / boomer / Capital / central / down / Economies / fantasy / focus / Getting / high / Inflation / Investment / must / nightmare / On / published / returns Original / Why

Oliver’s Insights – Five big picture implications of the war in Ukraine of relevance for investors – and why are Australian shares holding up better?

Oliver’s Insights – Five big picture implications of the war in Ukraine of relevance for investors – and why are Australian shares holding up better? Key points The situation regarding Ukraine is at high risk of getting worse before it gets better for investment markets. The key is how much Russian energy exports are disrupted & whether NATO forces avoid the conflict. Five big picture implications are likely to be: increased geopolitical tensions; reduced globalisation; …