Weekly Market Update – 15th February 2019

Investment markets and key developments over the past week Global share markets rose over the last week helped by optimism on US/China trade talks, progress towards averting a renewed partial government shutdown in the US along with okay earnings results. Australian shares were little changed having outperformed sharply in the previous. Bond yields were little changed. The oil price rose but metal and iron ore prices fell. The $A was little changed as the $US rose. Progress in US/China trade talks [...]

2019-02-18T23:16:34+00:00February 18th, 2019|Economy, FinSec Post, Investment, Weekly Market Update|

Haynes Royal Commission: The trouble started decades ago…

The profitability of Australia’s Finance industry - dominated by our big banks - has trended down over recent decades.  The return on shareholder funds peaked in the early 1990s after the recession of 1991 and the crash of several banks. The big players could see non-bank finance sectors growing much faster than banking revenues, and the exhibit below shows their concern eventuated.  These days, banking accounts for less than a quarter of the industry’s total revenue of over $700 billion.   [...]

2019-02-27T23:17:44+00:00February 7th, 2019|Economy, FinSec Post, More than just Finance|

Volatile Markets: A FinSec Comment

Global shares had a bumpy couple of weeks, as strong economic data and corporate earnings were offset by geopolitical concerns. Most major markets had a positive start to the week as investors regained their composure after last week's sharp sell-off, with many indices posting their largest one-day rallies since March. What caused the sharp sell-off? The main reason underpinning the pullback was a response to concerns that rising interest rates (increasing bond yields) in the U.S. would cause a national or [...]

2019-07-31T00:51:59+00:00October 19th, 2018|Economy, Investment|

Good People Doing Bad Things – How Did We End Up Here?

It is a story that has made news headlines the world over. A story about culture and greed impairing the judgement of people who should have known better. While both sides of politics have been very vocal in the wake of Hayne’s interim report, no one has touched the vexed question of how did we end up here?   The impact on the victims has been devastating. The behaviour of the financial services community despicable and unforgivable. The viewing has been [...]

2018-10-23T00:36:31+00:00October 15th, 2018|Economy, FinSec Post, Media, More than just Finance, The View|

Bitcoin and The Basics Of Cryptocurrencies

Three years ago Bitcoin was $250AUD. With a 10,000% increase in price since then, it is starting to generate significant buzz with the everyday investor, as is the underlying technology driving it, “blockchain”. But what are digital currencies and should you be investing in them? We asked renowned technologist and futurist, Mark Pesce to take us on the bitcoin / blockchain journey. “Never invest in a business you don’t understand.” A simple bit of advice from the Sage of Omaha, Warren [...]

2017-12-20T23:54:25+00:00December 9th, 2017|Economy, FinSec Post, Investment, More than just Finance, The Story|

Yes, Virginia, There is a Banking Royal Commission – Unfortunately

In a matter of days, Santa will be putting the finishing touches on his “Naughty” and “Nice” lists and it remains unclear on which side of the ledger the banks will sit. It’s an understatement, of course, to suggest the big four (CBA, Westpac, ANZ and NAB) won’t be expecting an outpouring of festive cheer and goodwill from their 17+ million customers this year. Despite holding around 2.5 trillion of our money, collectively – (and 80% of the nation’s loans) - [...]

Bitcoin: the very definition of a bubble

Legend has it that Joe Kennedy, father of former President John F Kennedy, avoided the stock market crash of 1929 by selling his entire portfolio just days before prices collapsed. He did this, the story goes, after receiving a share tip from a shoeshine boy. When taxi drivers, lift attendants and young lads on the sidewalk are speculating in stocks, he concluded, “the market is too popular for its own good”. The stock market is riding high today but I’d be [...]

2017-12-20T23:55:38+00:00November 12th, 2017|Economy, Finance, FinSec Post, Investment, More than just Finance, The Story|

Weekly Market Update – 26th May 2017

Investment markets and key developments over the past week Share markets rose over the last week, reversing the Trump FBI/Russia Bump from the previous week as investors bought the dip supported by mostly good economic and profit news. US shares rose 1.4%, Eurozone shares rose 0.04%, Japanese shares gained 0.5%, Chinese shares rose 2.3% and Australian shares gained 0.4%. The gains in Australian shares were constrained by ongoing worries about the banks, retail shares and weakness in the iron ore price. [...]

2017-05-31T01:54:32+00:00May 31st, 2017|Economy, FinSec Post, Investment, Weekly Market Update|

Into the Unknown

Into the Unknown: Key Takeaways PIMCO recently published its Cyclical Outlook for global growth, inflation, trends and transitions likely to affect the investment landscape in 2017. Below are some key takeaways: With Trump, Brexit, Italy’s “No” vote and China’s currency woes, the world economy and markets have embarked on a journey into the unknown. As coauthor Andrew Balls and I noted, the only certainty in our view is that the “tails” in the distribution of potential macro outcomes have become fatter [...]

2017-01-20T00:53:00+00:00January 20th, 2017|Economy, FinSec Post, Uncategorized|

US Election 2016: Trump Wins. How Markets will React?

How Markets will React: A Short, Medium and Long Term View. Keeping an eye on the short term While there was a quick selloff at first signs of a conclusion to the U.S. elections, and markets seem to have recovered quickly, there still may be some near-term volatility. As with many geopolitical events that generate market swings, the first priority is to rationally evaluate your chosen investment strategy. Review your primary market indicators (we use cycle, value and sentiment), consult your [...]

2016-11-10T03:54:05+00:00November 10th, 2016|Economy, FinSec Post, Investment, The Verdict, The View|