Newsletter – November 2024
In November 2024, the Australian and the US share market demonstrated a strong upward trend, largely influenced by positive economic indicators and a rally in US markets following Donald Trump's election victory, which boosted investor confidence in anticipated pro-business policies. Conversely, the Australian residential property market showed signs of cooling, with a modest increase in home values and declining sales activity attributed to rising borrowing costs and affordability challenges. The Reserve Bank of Australia maintained its cash rate amid ongoing inflation concerns, while mixed forecasts regarding future interest rate movements highlight uncertainty about economic growth and the potential impact of US policies on Australia’s economy.
Newsletter – October 2024
The ASX 200 index exhibited fluctuations, reflecting a modest monthly increase, with banking and property sectors recovering while mining stocks faced challenges. Meanwhile, the S&P 500 outperformed, reaching a new high driven by strong technology and AI stock performances. The residential property market showed regional variations, with some cities experiencing growth while others saw declines, indicating a slowing momentum. The RBA's focus remains on stabilising inflation and monitoring the labor market. Different banks predict varying timelines for interest rate reductions.
What is Risk, Really?
I recently engaged with an insightful video presentation by Howard Marks, author of The Most Important Thing Illuminated: Uncommon Sense for the Thoughtful Investor. He emphasises that risk is not just about volatility but the probability of loss. Marks highlights the many forms of risk, such as missing opportunities or being forced to sell at a low point, and provides key points on understanding and managing risk wisely. His counterintuitive insights, like how an asset’s price drop can make it less risky, are particularly thought-provoking.
How to Build a Sustainable Family Budget
With the rising cost of living and inflation affecting many households, Australian families are feeling the squeeze. The Consumer Price Index (CPI) increased by 3.8% over the twelve months to June 2024, making it essential to create a sustainable budget. Here’s how you can manage your finances effectively while being mindful of both your wallet and the environment.
A Holistic Approach to Your Financial Well-being
Mental health plays a vital role in how we approach financial decisions and manage our everyday lives. Stress, anxiety, and other emotional challenges can significantly influence your financial choices, creating a cycle that can be tough to break. In this article, we discuss signs of financial stress and provide practical steps for managing it.
Understand Superannuation Trends and Make Better Choices
Are you making the most of your retirement savings? Recent data from the Australian Prudential Regulation Authority (APRA) has shed light on some interesting trends in how Australians are choosing to use their superannuation in retirement. What the Data Shows Despite efforts to encourage retirees to use income stream products, many are still opting for lump sum […]
Common Compliance Mistakes to Avoid and How to Address Them
Compliance is a cornerstone of our profession, extending far beyond simple box-ticking exercises. Our ongoing file reviews have revealed several recurring issues that require our attention. This email aims to provide a comprehensive overview of these common mistakes and offer practical solutions to address them effectively. 1. Inadequate Record-Keeping The Issue: Proper documentation of advice […]
Newsletter – September 2024
In a month that defied the typical “September effect,” both the Australian S&P/ASX 200 and the US S&P 500 saw gains, with the ASX 200 increasing by 0.95% and the S&P 500 rising by 1.49%. The housing market also showed resilience, with national dwelling values rising 0.5%, though the pace of growth is moderating. The RBA kept the cash rate target unchanged at 4.35%.
How Global Rate Cuts Affect Our Term Deposits
Australia’s major banks have recently decided to lower their term deposit interest rates. This change comes at the same time as US Federal Reserve Chair Jerome Powell announced that the US is likely to cut interest rates soon. This development has important implications for both the Australian and global financial markets, presenting opportunities for investors […]