News Updates
As it Happens
Sometimes being at one with a crowd can be nice, as safety in numbers can provide comfort. However, when crowds turn they can be dangerous - you might get trampled! In fact a wariness of crowds is essential to successful investing. Read more here Rick Maggi (Westmount. Financial Solutions.)
An interesting, quick article from Vanguard's Robin Bowerman. Read here Rick Maggi (Westmount. Financial Solutions.)
Since 1950 the average cyclical bull market in Australian shares lasted 48 months with a 126% gain. The current bull market has gone for 28 months with only a 37% gain. So where are we now in the cycle? Are we heading into a bear market already or is there more growth to come? Read on… Where are we now? Rick Maggi (Westmount. Financial Solutions.)
The following is an excellent overview by AMP Capital's Dr Shane Oliver. Definitely worth a read. Read article here Rick Maggi (Westmount. Financial Solutions.)
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.)
The Government's Mid-Year Economic & Fiscal Outlook (MYEFO), announced yesterday by Joe Hockey, included, among other things, changes and clarification on 92 tax and superannuation measures that were announced, but not legislated, by the previous Labor Government. Of the 92 measures, 34 will proceed, 3 will be amended and 55 will be scrapped. Read the changes here Rick Maggi (Westmount. Financial Solutions.)
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.)
and don't forget to buckle-up… click here
As widely expected, the Reserve Bank of Australia decided this afternoon to keep interest rates at the historic low of 2.5 per cent.
In a statement released today, RBA Governor Glenn Stevens says uncertainty remains about the strength of economic growth outside of Australia's mining sector. "There has been an improvement in indicators of household and business sentiment recently, but it is still unclear how persistent this will be," he said. The RBA is also concerned about the economic impact of the persistently high value of the Australian dollar.
While improving economic data has prompted some economists to predict the RBA will raise rates late next year, the general consensus is that interest rates will remain low for some time and this has several implications for investors…
1) Continued low returns from cash and term deposits will attract investors to other assets with better cash flows, such as corporate debt, real estate investment trusts, various shares and unlisted non-residential property.
2) Government bonds will continue to generate very low returns.
3) Generally easy global and Australian monetary conditions through next year will help underpin further good gains in growth assets like shares.
The RBA will make its next interest rate decision in February, but don't hold your breath! Rick Maggi (Westmount. Financial Solutions.)
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.)
A quick and interesting article on Perth's growth prospects. Enjoy. Read more here Rick Maggi (Westmount. Financial Solutions.)
If you're not sure if you need or want financial advice, perhaps thinking about doing it all yourself? Read on...
Read 7 Good Reasons Read Robert Kiyosaki's Blog
Rick Maggi (Westmount. Financial Solutions.)
