A Finsec View – RBA review, Charlie’s happy & fulfilling life, 60/40 portfolios, To wait or not? and More
5th May 2023 It's reached the stage where the RBA cash rate leads the news every few weeks. After this week's increase to 3.85%, the 11th in a year, it's not difficult to conclude that Governor Philip Lowe will most likely use the remaining four months of his term to quash inflation, even if the consequences for some borrowers are a little dire (Australians are definitely feeling it. Consumer credit agency Equifax reports a large increase in demand for credit cards and personal loans). We don't [...]
Weekly Market Update – 28th April 2023
Investment markets and key developments Global share markets were mixed over the last week with US shares initially down but then boosted by tech sector earnings to be up 0.9% and Japanese shares rose 1%, but Eurozone shares fell 0.9% and Chinese shares fell 0.1%. Australian shares fell 0.3% with falls in resources stocks and utilities offsetting gains in telcos, property and IT shares. Bond yields fell, as did oil, metal and iron ore prices fell. The $A fell despite a slight fall in the $US. [...]
Weekly Market Update – 21st April 2023
Investment markets and key developments Global share markets were mixed and mostly little changed over the last week amidst mixed economic data. US shares fell 0.1% for the week but Eurozone shares rose 0.3% and Japanese shares rose 0.2%. Chinese shares fell 1.5% though. Australian shares fell 0.4% with falls in resources stocks offsetting gains in finance, industrial and property shares. Bond yields rose, but oil, metal and iron ore prices fell. The $A fell slightly with a slight rise in the $US. Inflation pressures are continuing [...]
A Finsec View – Etymology of superannuation, Grant Hackett OAM, Reshoring of supply chains, Family feuds and More
21st April 2023 It's that time of year again! In a few weeks, on 9 May 2023 at 7.30pm, Treasurer Jim Chalmers will deliver the Federal Budget for 2023/24. Last year, an earlier 'election budget' was presented in April by Josh Frydenberg, and then Chalmers handed down a light interim Budget in October 2022. The next one will be more substantial, delivered by a Treasurer who has signalled his time in office will not be wasted. “No man ever steps in the same river twice. [...]
Weekly Market Update – 14th April 2023
Investment markets and key developments Global share markets had a strong week helped by a further fall in US inflation adding to expectations that the Fed is at or close to the top. For the week US shares rose 0.8%, Eurozone shares gained 1.7%, Japanese shares rose 3.5% but Chinese shares fell 0.8%. The positive global lead helped boost Australian shares which rose 2% for the week with gains led by material, IT, property and energy stocks. Bond yields rose as did oil, metal and iron [...]
A Finsec View – The problem with labor’s franking credit proposal, Investment themes, Investment fraud and More.
6th April 2023 Last week, the director of AFR insights James Daggar-Nickson, received an unsolicited text. It was supposedly from a 22 year old woman from China eager to make the acquaintance of a 'well-mannered' man (and presumably obtain his bank account details). The message couldn't have been more fortuitous, not only because we're sure James probably does have lovely manners, but because he was at that moment emceeing The Australian Financial Review Banking Summit, at which scams was the central theme. Assistant Treasurer Stephen [...]
Weekly Market Update – 31st March 2023
Investment markets and key developments Concerns about the banking system have eased this week but have not been completely erased. Expectations for fewer central bank interest rate hikes (because of the risks in the banking system and the tightening in lending standards which will weigh on economic growth and is a de facto monetary tightening) is helping to lift shares, with the US up 3.5% this week, Australia +3.2%, Eurozone +4.5%, Japan +2.4% and China +0.6%. Bond yields rose over the week on fewer banking sector [...]
A FinSec View – Aus’s Inflation Profile, Banking Collapses, UK Budget, The Salt March and More
Thank you for the feedback regarding our superannuation commentary last View. Whilst it’s a fact that the average Australian is not engaged with their super, it is nice to know our readers are far from average and highly engaged when it comes to understanding any changes and, more importantly, the implications thereof. At this stage, there is little further to report on the proposed $3 million cap on super - submarines and bank collapses have pushed super down the line. And, although It hasn’t received [...]