25 basis point cut...
The Reserve Bank has cut interest rates by 25 basis points, taking the official cash rate to 3.25 per cent. More here. Rick Maggi
19/09/12: Q&A on QE3
What is it? Why do it?
AMP Capital's Dr Shane Oliver discusses the potential consequences for investors and retirees of the US Federal Reserve's recent decision to commence another round of 'quantitative easing'. This is an easy to understand article, well worth a quick read. Enjoy. Rick Maggi. Read more here.
01/09/12: Economy still growing strong
Australia still the envy of the developed world...
In light of recent comments about the state of our economy, I thought this was a refreshing article... Read more Rick Maggi.
27/08/12: Why asset allocation matters...
Vanguard's Robin Bowerman
More than quarter of a century ago, a landmark investment research paper by three US academics concluded that the asset allocation of an investment portfolio is the primary driver of its long-term performance... Read more here
18/08/12: Teaching kids about money
The MoneySmart Teaching Package
This week the Australian Securities & Investments Commission (ASIC) launched the MoneySmart Teaching Package to primary schools as part of a national commitment to teaching the core life skill of financial education. Secondary students will be targeted in December. It's a great idea. So if you have children or grandchildren you may want to take a look at this particular website and use some of the free materials on offer. Rick Maggi. View website and video here
14/08/12: If you invested $10,000 thirty years ago...
The Vanguard 2012 Index Chart
There's nothing quite like time to smooth out the rough patches and provide investors with some perspective. This chart, just released by Vanguard, shows what would have happened to a $10,000 investment made in 1982 had an investor selected either Australian shares, international shares, US shares, listed property, Australian bonds or cash. While the final result will likely surprise many, I believe the wide gap between Australian shares and cash is the standout statistic. View Chart Here
03/08/12: Will more monetary easing work?
Will Quantitative Easing Mark III be successful?
While recent announcements coming out of the US and the European have been disappointing, there is little doubt that both will need to take extra steps to bolster their economies. When this eventually occurs, will it be as effective? Read more here Rick Maggi.
27/07/12: The search for a decent yield
Oliver's Insights
The uncertain investment environment and poor returns from shares since the GFC has seen the popularity of bank deposits surge while that of shares has collapsed. With term deposit rates falling it makes sense for investors to consider some of the alternatives. This article, written by Dr Shane Oliver of AMP Capital, takes a closer look at some of the options available. Rick Maggi. Read more here
29/07/12: Have shares lost their appeal?
History is on the side of shares.
After several years of poor performance, is the "stocks for the long term" still valid? Are long term investors right to sit tight? Or is this downturn different? Read more here Rick Maggi
19/07/12: USA: What on earth is the "fiscal cliff"?
Yet another alarming sound-bite?
In recent weeks, US politicians and economists have been quoting the term 'fiscal cliff' in the media with increasing regularity. The coming fiscal cliff they are referring to would take effect on January 1 2013, after the US elections in November. So what exactly is it? Should Australian investors be worried? Read more here
16/07/12: Are we in a property bubble?
Is this time any different?
There's a tug-of-war between optimists and pessimists, between economists, investment journalists and the real estate industry. Are we in a property bubble or on the verge of a recovery? This difference in opinion also seems to depend of your particular vantage point (ie Perth vs Melbourne) and whether you believe economies in the rest of the world will slowly recover or deteriorate. This article, written by Robert Keavney for Money Management Magazine, suggests our 'luck' (in the property market) is about to run out. Read more here. Rick Maggi.
29/06/12: Australian house prices - is the crash upon us?
Where to from here?
New home sales data released today for May by the HIA confirm that the housing market remains chronically weak right now. This article looks at the outlook for Australian house prices. Rick Maggi Read more here
28/06/12: What about the US?
Greek relief for now - but what about the US?
In addition to providing a brief update on Europe, this note (courtesy of AMP Capital) focusses on the US economy, both in terms of the slowdown evident in some economic indicators and the impending fiscal tightening from January 1 next year. Read more here
26/06/12: 7 contradictions in the Euro crisis
It's fixable...
Jim O'Neill, Chairman of Goldman Sachs Asset Management, in his latest issue of Viewpoints looks at 20 contradictions regarding the euro area issues. Here are 7 key contradictions... Read more here