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Coronavirus Update #5

The world just passed 1 million COVID-19 infections (Thursday). Tragically 53,000 people have now died, but, more than 208,000 have recovered. The pandemic (declared as such on March 11 by the World Health Organisation) has spread to 181 countries and at least one-third of the world is now under some type of lockdown. In this article 'a complete timeline of the coronavirus pandemic' (click here), Business Insider depicts the most significand events and moments that have defined the pandemic [...]

2020-04-03T08:04:58+00:00April 3rd, 2020|Economy|

Coronavirus Update #4

It has been five weeks that has changed the world. Whilst we cannot influence the economic impact of the COVID-19 outbreak nor manage the market's reaction to it, we can keep you well-informed about what is happening in the economy and the markets and what it means for you. Our team are working hard to analyse events and help guide you to the best possible outcomes. This is a summary of the week that was. Markets Our Observations Fear [...]

2020-04-03T08:05:37+00:00March 27th, 2020|Economy|

Federal Government Stimulus

The Australian government has announced another round of economic stimulus to try and mitigate the economic slowdown caused by efforts to contain the spread of the COVID-19 virus. In this article we provide clarity with regard to the announcements relevant to the services we provide. Changes To Account Based Pension Withdrawal Requirements Currently, pensioners are required to withdraw a minimum percentage of their portfolio each year as a pension payment. The government has announced they will halve the withdrawal requirements [...]

2020-04-02T00:11:26+00:00March 26th, 2020|Economy|

‘Wealth’ is income-generating capacity not share prices

The following is a note penned by our esteemed friends and allies in NSW, Stanford Brown Financial Advisers. It is well written, insightful but most importantly aligns with our own view and approach. ‘Wealth’ is income-generating capacity not share prices. Since share prices peaked on 20th February, the broad Australian share market has fallen by -35%, US is down -30%, and European markets are down by an average of -40%. The S&P500 index in the US is back to [...]

2020-04-02T02:12:39+00:00March 21st, 2020|Economy|

Coronavirus Update #3

U.S. President Donald Trump's national address from the Oval Office last night was intended to calm the public and investors. Regarding the latter, it appears to have fallen short of the mark. Why? The announcement of new U.S. restrictions on travel to and from Europe for 30 days is likely to act as a further drag on the fundamentals for airlines and other related travel industries. In addition, the offsetting stimulus measures that were announced such as loans to [...]

2020-04-01T22:55:00+00:00March 13th, 2020|Economy|

Assessing markets through a cycle, valuation and sentiment framework (COVID-19)

In times of extreme market volatility as we are experiencing with the COVID-19 pandemic it can be useful to take a step back and think about what has happened and how that might inform our preferred positioning going forward. Three important questions come to mind in terms of how we think about our portfolios and investment strategy: Valuations: Has the selloff improved the skew of potential returns on risky assets? Sentiment: Is there evidence of a capitulation or panic [...]

2020-04-02T03:13:49+00:00March 13th, 2020|Economy|

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|