The FinSec View

18th November 2022 It's been a long time coming, but underlying US inflation finally appears to be easing. More on this in our market update below. One factor that will influence future inflation is demographics. This week, the world reached a milestone, with the global population officially hitting 8 billion. Australia has played its small part. New figures from the Australian Bureau of Statistics (ABS) show life expectancy in Australia actually increased during the COVID-19 pandemic (one of the few countries). From [...]

4th November 2022 In a macro sense, last week's Federal Budget was incredibly modest. Looking at the spending packages as a proportion of GDP they came in at just 0.1%. Really it was just about delivering on the election promises. In the context of previous budgets, in May 2022 spending initiatives came in at 1.7% of GDP, in 2021 during covid they were 4.1% of GDP and in 2020 5.5% of GDP - Even pre-covid the numbers were far [...]

21st October 2022 If you could talk to a younger version of yourself, what advice would you give? Wear more sunscreen, drink more water, make better money choices? As it turns out, professional investors are also not immune to the odd moment of "if only I had ...". This week, the AFR spoke to nine professionals about the lessons they'd teach their past selves, given the chance. The insights include recognising that volatility doesn't last forever and that the future [...]

7th October 2022 How financially smart do you think you think Australians are? Be honest. In a finance quiz by think tank The Conexus Institute in June, less than half of the 1040 respondents got all six questions correct. How best to arm Australians with more financial knowledge is a pertinent question, especially as Treasury considers how to expand access to and improve the quality of financial advice. Even more so when you consider rising interest rates and the [...]

23rd September 2022 It might not feel like it when you're at the supermarket checkout, but according to investment bank Credit Suisse, Australians are now amongst the world's wealthiest people. Almost 2.2 million Australians are millionaires after soaring asset prices pushed another 390,000 adults onto the top rungs of the global wealth ladder. Making Australia one of the richest countries in the world - and Australians its wealthiest inhabitants, with a median net worth of $US273,900 ($409,907) at the [...]

9th September 2022 This week's View comes to you from Hahndorf in the Adelaide Hills, where the FinSec team have just wrapped up two days of knowledge sharing, strategy and personal development. It is valuable time that we spend away from the 'business as usual' unpacking and re-framing the business challenges and exploring new opportunities.­­ It also happens to be show week and a great reason to escape the hustle and bustle of Wayville! In discussing the current industry landscape, [...]

26th August 2022 Well, this is fun. Despite central bankers and economists continuing to warn a global recession is possible if inflation is not brought under control and consumers start to curb their post-pandemic spending, global sharemarkets have rallied strongly since the lows of mid-June. It’s a rally that has been dubbed the “most hated” because it is precisely what governments and monetary authorities don’t want to see - a sign there is still plenty of liquidity in the [...]

12th August 2022 Have we seen the bottom of the market? That's the question day traders and equity managers worldwide are asking after an unexpectedly robust start to the year's second half. In the US, the S&P 500 (tracking the market's biggest stocks) is up around 6.95 per cent over the past month. Locally, the S&P 200 is up around 6.4 per cent over the month. Adding to the good news was last night's US inflation figures showing headline [...]

29th July 2022 Has there ever been more general public interest in inflation? It's even reached the unusual point where the Prime Minister, Anthony Albanese, has waded in, warning the Reserve Bank against "overreach". Typically, Prime Ministers are expected to be on their 'best behaviour' when it comes to influencing the independence of the Central Bank. It certainly highlights how difficult it is for Central Banks right now. Their ability to raise cash rates is significantly different from pre-GFC and [...]

15th July 2022 One of the tribulations of checking the junk folder of your emails is seeing how people are trying to scam you. Scammers typically sell things that are highly desirable but require hard work and patience. Want to lose weight? Forget going to the gym and adjusting your diet - drink this miracle water! Want to become rich? You can work hard and be sensible with your money, or you can make millions by taking up this [...]