FinSec Post

Labor’s franking policy is a ticking bomb for all super funds

The Australian Labor Party (ALP) proposal to limit cash refunds of franking credits will clearly impact many pension phase SMSFs, but we believe it also has the potential to impact many other superannuation funds. In this paper, we build a model of the key variables which determine whether a superannuation fund is likely to lose refunds of net franking credits under the ALP proposal. Our model is consistent with and helps explain an article in The Australian which reported that $309 million in [...]

Weekly Market Update – 19th October 2018

Investment markets and key developments over the past week While share markets had a great bounce from oversold levels early in the last week they fell back to varying degrees as worries around US interest rates, the US trade conflict with China, tech stocks and Italy's budget deficit continued along with escalating tensions with Saudi Arabia regarding a missing journalist. This left share markets mixed with Eurozone & Australian shares up, US shares little changed and Japanese & Chinese shares down. Bond [...]

2018-10-22T06:29:09+10:30October 19th, 2018|FinSec Post, Market Update|

Weekly Market Update – 12th October 2018

Investment markets and key developments over the past week Share markets fell sharply over the last week led by the US share market primarily on the back of worries about rising interest rates and bond yields and the deteriorating US/China relationship. Bond yields generally declined though reflecting safe haven demand which also benefitted the gold price. Iron ore prices rose which is good for Australia, but the oil price fell. A fall in the US dollar saw the Australian dollar push back [...]

2018-10-15T02:28:17+10:30October 12th, 2018|FinSec Post, Market Update|

Weekly Market Update – 5th October 2018

Investment markets and key developments over the past week Share markets fell over the last week, largely in response to a renewed rise in bond yields. Commodity prices rose, although this was mainly due to higher oil prices. Strong US economic data and some rise in expectations for Fed tightening saw the $US rise and this saw the $A fall below $US0.71. Bond yields have resumed their rising trend, with more upside ahead. The break higher was led by the US with the [...]

2018-10-10T03:26:36+10:30October 5th, 2018|FinSec Post, Market Update|

Weekly Market Update – 28th September 2018

Investment markets and key developments over the past week Share markets were mixed over the last week with US shares down 0.5% and Eurozone shares down 1.1% on renewed worries about Italy's budget, but Japanese shares rose 1%. Chinese shares rose 0.8% and Australian shares rose 0.2%. Bond yields were little changed except in Italy where they rose on budget concerns. Oil prices rose after OPEC left output unchanged, but metal and iron prices fell. The $US rose, particularly as the Euro [...]

2018-10-02T03:14:45+09:30September 28th, 2018|FinSec Post, Market Update|

Weekly Market Update – 21st September 2018

Investment markets and key developments over the past week The past week saw "risk on" with the latest escalation in the US/China trade conflict being less than feared. This saw shares rally, bond yields rise, commodity prices gain, the US$ fall and the A$ rise. US shares rose 0.9%, Eurozone shares gained 2.1%, Japanese shares rose 3.4%, Chinese shares rose 5.2% and Australian shares rose 0.5%. While the Australian share market participated in the global share market rebound, over the last week [...]

2018-09-25T01:42:33+09:30September 21st, 2018|FinSec Post, Market Update|

Weekly Market Update – 14th September 2018

Investment markets and key developments over the past week The past week saw most share markets rise, helped by good economic data, talk of another round of US/China trade talks and a bounce in emerging market shares after Turkey raised interest rates. US shares rose 1.2%, Eurozone shares gained 1.4%, Japanese shares rose 3.5% and Australian shares rose 0.4%. However, Chinese shares remained under pressure and fell another 1.1%. Bond yields mostly rose. Commodity prices also mostly rose helped by a weaker [...]

2018-09-18T06:10:33+09:30September 14th, 2018|FinSec Post, Market Update|

There’s No Crystal Ball and that’s OK

When the history books are written, they leave out the bits that didn’t matter and line up in orderly rows what is now seen as significant, even if it was overlooked at the time. With the benefit of hindsight, it’s clear what was and what was not important. In real time, of course, it is far harder to see what is going on. I am enjoying a podcast series at the moment on Watergate, which for obvious reasons is resonant today. [...]

2018-09-25T02:06:18+09:30September 14th, 2018|FinSec Post, Investment, More than just Finance|

Weekly Market Update – 7th September 2018

Investment markets and key developments over the past week The past week saw share markets fall on the back of worries around emerging markets, trade wars and the potential regulation of US social media stocks. US shares fell 1%, Eurozone shares lost 2.6%, Japanese shares fell 2.4% and Chinese shares fell 1.7%. After being resilient to global threats over the last few months, Australian shares also got hit and fell 2.8% to their lowest level since June. Bond yields generally rose, although [...]

2018-09-12T02:53:23+09:30September 12th, 2018|FinSec Post, Market Update|

Weekly Market Update – 31st August 2018

Investment markets and key developments over the past week The past week saw most share markets rise with US shares pushing further into record territory, but gains were capped by ongoing turmoil in the emerging world (notably Argentina and Turkey as their currencies plunged anew) and nervousness around trade, particularly ahead of the next round of US tariffs on imports from China. US shares rose 0.9%, Japanese shares gained 1.2% and Chinese shares rose 0.3%, but Eurozone shares fell 0.6% on trade [...]

2018-09-12T02:22:27+09:30September 6th, 2018|FinSec Post, Market Update|
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