17/01/14: The Year Ahead
19/12/13: The Fed finally tapers
...and what it means for investors
Overnight the US Federal Reserve announced that it will begin carefully and slowly scaling back its massive stimulus program next month. It is the central bank's first step towards winding back the stimulus that has helped the US recover from its worst recession since the 1930s and a sign that the US economy is recovering.
In response, the US share market surged by almost 2% and at the time of writing, local markets are up by about 1.5%. Our local currency immediately dropped to 88.18 US cents but then quickly recovered to 89.45 US cents as investors digested the news. Most importantly, this should be viewed as good news. AMP Capital's Dr Shane Oliver discusses the implications for investors here. Rick Maggi (Westmount. Financial Solutions.)
11/12/13: Review of 2013, outlook for 2014
Insights from AMP Capital's Shane Oliver...
It's that time of year again where we can take a look at the year that was, and then look forward to the next twelve months. Read more here Rick Maggi (Westmount. Financial Solutions.)
30/11/13: Deflation or rising inflation?
What is the risk?
AMP Capital's Dr Shane Oliver looks discusses the potential consequences of a deflationary spiral versus rising inflation on your hip-pocket. Enjoy. Read more here Rick Maggi (Westmount. Financial Solutions.)
15/11/13: China on track
Better than expected...
China's growth cycle is stabilising and that's good news for Australia's economy, our markets, and possibly your super fund. AMP Capital's Dr Shane Oliver weighs in on recent fears over slowing Chinese growth with a typically calm, well balanced commentary. As always, his article is easy to read and not overly technical. Enjoy! Read more here Rick Maggi (Westmount. Financial Solutions.)
04/11/13: Avoiding excess risk in a low-interest environment
Don't upset the fine balance...
The strong growth in the prices of many Australian shares over the past year is attributable, in part, to the buying of yield-hunting investors. A number of high-yielding financial stocks, for instance, are trading at or near to record highs.
Predictably, in the prevailing low-interest environment, many investors are now turning to more concentrated portfolios of high-yielding shares in an effort to maintain their investment yields and their lifestyles. But, unfortunately, this pursuit of yields comes at the cost of undertaking a higher level of risk for an investor's overall investment portfolio.
Rather than exposing portfolios to higher risk and upsetting carefully diversified portfolios in a hunt for income, investors should focus more on a portfolio's total return – that is the combination of its income and capital growth. With this approach, investors in need of more income than produced by a portfolio draw an amount taken from their portfolio's total return, taking into account cash-flow and capital appreciation.
In this way, investors can remain on track to achieving their long-time goals without upsetting their portfolio's diversification and without taking greater risks. Rick Maggi (Westmount. Financial Solutions.)
08/10/13: The US budget standoff
Here they go again...
With US Republicans and Democrats going head to head over budget and debt negotiations, the rest of the world looks on powerless and bemused. Beyond some of the media hysteria, in this article AMP Capital's Shane Oliver provides a balanced, sober look at the debt ceiling standoff and the likely outcome. Read more here Rick Maggi (Westmount. Financial Solutions.)
09/09/13: Change in the wind
Australia's new Government
A balanced commentary on the likely share market reaction to the Liberal/National election win on Saturday. Read commentary here Rick Maggi (Westmount. Financial Solutions.)
05/09/13: Australian profits, the economy and shares
Another from Dr Shane Oliver
In this update, AMP Capital's Dr Shane Oliver takes a close look at where we are right now in the cycle, company profits and the risks and opportunities going forward. In a background of growing worry over Australia's economy, this is a timely and poignant article. Read more here Rick Maggi (Westmount. Financial Solutions.)
05/09/13: Need more time?
Invest smarter and save time...
Ask any of your friends what they wish they had more of in life and perhaps a few might say a faster car or bigger house - but what most people are really looking for is more time.
Investing your hard earned money in a smarter, more efficient manner not only allows you to spend more time focussing on a smaller selection of investments, it also allows you to spend more time on other, more important matters beyond the process of investing, like your health, your family, your friendships or your business.
Your Financial Planner is the same. By investing your superannuation or pension fund more efficiently, they'll have more time to help you achieve your goals, improve your retirement outcome, reduce your tax, protect your estate, and just generally help to control the controllable.
At Westmount, we believe that markets work, 'asset allocation' drives performance more than anything else and costs really do matter. In other words, it is infinitely possible to construct an effective investment portfolio (superannuation or otherwise) in a way that doesn't require constant monitoring, regular tinkering and an enormous fee to pull it all together. This has some obvious benefits for clients - lower costs, less stress, simplification and, yes, more time.
So if you believe that your life is a little more complicated than it should be, particularly in the area of investing or superannuation, don't just shrug your shoulders and accept the way things are. Instead, ask yourself, what else could I be doing with my precious time? And then call us to change the script for good. Read all about 'indexing' here Rick Maggi (Westmount. Financial Solutions.)
01/09/13: The US fiscal cliff, debt ceiling and economic outlook.
Oliver's Insights for January 2013
This note looks at the deal to avert the US fiscal cliff along with its debt ceiling and broader economic outlook. Generally pretty positive for 2013 (easy reading). Enjoy! Rick Maggi. Read here
29/08/13: Another Asian market crisis?
Potential implications for investors...
AMP Capital's Dr Shane Oliver weighs in on the recent round in emerging market currencies and assets. A cautionary article worth a read. Rick Maggi. Read more here
22/08/13: Franking Credits 101
What are Franking Credits?
With the Coalition's plan to impose a 1.5% levy on the top 3200 companies in Australia to help pay for their six-month paid parental leave proposal, we've had a few questions about franking credits and how the proposal might impact investors and retirees. While the full details are yet to be announced, based on the current rumours, the actual impact on franked dividends would be fairly minimal - much ado about nothing. The following is a back to basics explanation of franking credits for the uninitiated… What are Franking Credits?
19/08/13: The Broccoli & Pizza Portfolio
Insights from Dimensional's Jim Parker
It's often hard to give up on the idea that investment should be exciting - an interesting article from Dimensional VP, Jim Parker. Rick Maggi Read more here.