Over long periods of time shares and other growth assets deliver for investors via the power of compound interest. · However, cyclical swings can frequently throw investors off and reacting to periods of poor returns by moving to cash only locks in losses and poor long term returns. · So the key for investors is…
The Greek No vote means more uncertainty ahead regarding Greece, with significantly heightened risk of a Greek exit from the Euro. · The threat of a flow on to other Eurozone countries is likely to keep markets on edge in the short term. However, contagion is likely to be limited as the rest of Europe is…
Key points are as follows… · In response to pressure from APRA, lenders are starting to tighten lending conditions to property investors. · This is designed to slow property investor lending, particularly into the strong Sydney property market, while at the same time allowing the RBA flexibility to keep interest rates low in order to…
Key points are as follows… · The 2015-16 Budget has seen a shift in focus from budget repair towards supporting growth and fairness. · Thanks to another blow to revenue the budget deficit for 2015-16 is now projected to be $35bn (compared to just $17bn in last year’s budget); return to budget balance or surplus…
Key points are as follows… · We have now entered a tougher time of the year for shares & the recent volatility could have further to go. Greece & the Fed are the key risks to keep an eye on. · However, we remain of the view that we are still a long way from…
Key points are as follows… · The RBA’s latest rate cut along with downwards pressure on the value of the $A should help Australian economic growth pick up to around trend next year. · While 2% is likely to be the low, further cuts cannot be ruled out, particularly if the $A remains too strong.…
Key Points are as follows… · While corrections are inevitable, we still appear to be a long way from the peak in the investment cycle. · Shares are not unambiguously overvalued and on some measures are still cheap, uneven and below trend global and Australian growth is extending the economic recovery cycle, monetary conditions look…
Oliver’s Insights – The Australian economy still in the doldrums Key points are as follows… Australian economic growth remains weak at 2.5%. Expect another one or two RBA cash rate cuts and the $A to fall to around $US0.70 by year end. Record low borrowing rates, the falling $A, lower fuel prices and rising wealth…
Oliver’s Insights – Another 21 great investment quotes… “Investing can be profitable as well as fun, but it can also be unnerving and unprofitable if you don’t understand markets and don’t have the right mindset. The basics of successful investing are timeless and some experts have a knack of encapsulating these in a way that’s…
Key points are as follows… · 2014 has been a positive but somewhat constrained and messy year for investors as the global economy remained in a cyclical “sweet spot” despite various threats, but Australian shares underperformed. · 2015 is likely to see okay but uneven global growth, low inflation and easy monetary conditions. While the US is…