The FinSec View

16th December 2022 'Tis the season when the world's strategists, economists and analysts gaze into their crystal balls and make predictions for the year ahead. And on the surface, at least, it looks like a pretty 'meh' year ahead, with both Goldman Sachs and Morgan Stanley tipping the S&P 500 - the key benchmark for global share market sentiment - will finish 2023 either flat or slightly lower than 2022. But dig a little deeper, and the next 12 [...]

2nd December 2022 "Sorry" probably isn't the usual rhetoric to feature amongst the barbs traded in Parliament House. But, when Reserve Bank governor Philip Lowe appeared before the senate economics committee on Monday, it was mea culpa all the way. It seemed a classic political move when Greens Treasury spokesman Nick McKim asked Lowe whether borrowers who had been "induced" into taking out mortgages based on the central bank's guidance were owed an apology. Surprisingly, it was not just one sorry, [...]

18th November 2022 It's been a long time coming, but underlying US inflation finally appears to be easing. More on this in our market update below. One factor that will influence future inflation is demographics. This week, the world reached a milestone, with the global population officially hitting 8 billion. Australia has played its small part. New figures from the Australian Bureau of Statistics (ABS) show life expectancy in Australia actually increased during the COVID-19 pandemic (one of the few countries). From [...]

4th November 2022 In a macro sense, last week's Federal Budget was incredibly modest. Looking at the spending packages as a proportion of GDP they came in at just 0.1%. Really it was just about delivering on the election promises. In the context of previous budgets, in May 2022 spending initiatives came in at 1.7% of GDP, in 2021 during covid they were 4.1% of GDP and in 2020 5.5% of GDP - Even pre-covid the numbers were far [...]

21st October 2022 If you could talk to a younger version of yourself, what advice would you give? Wear more sunscreen, drink more water, make better money choices? As it turns out, professional investors are also not immune to the odd moment of "if only I had ...". This week, the AFR spoke to nine professionals about the lessons they'd teach their past selves, given the chance. The insights include recognising that volatility doesn't last forever and that the future [...]

7th October 2022 How financially smart do you think you think Australians are? Be honest. In a finance quiz by think tank The Conexus Institute in June, less than half of the 1040 respondents got all six questions correct. How best to arm Australians with more financial knowledge is a pertinent question, especially as Treasury considers how to expand access to and improve the quality of financial advice. Even more so when you consider rising interest rates and the [...]

23rd September 2022 It might not feel like it when you're at the supermarket checkout, but according to investment bank Credit Suisse, Australians are now amongst the world's wealthiest people. Almost 2.2 million Australians are millionaires after soaring asset prices pushed another 390,000 adults onto the top rungs of the global wealth ladder. Making Australia one of the richest countries in the world - and Australians its wealthiest inhabitants, with a median net worth of $US273,900 ($409,907) at the [...]

9th September 2022 This week's View comes to you from Hahndorf in the Adelaide Hills, where the FinSec team have just wrapped up two days of knowledge sharing, strategy and personal development. It is valuable time that we spend away from the 'business as usual' unpacking and re-framing the business challenges and exploring new opportunities.­­ It also happens to be show week and a great reason to escape the hustle and bustle of Wayville! In discussing the current industry landscape, [...]

26th August 2022 Well, this is fun. Despite central bankers and economists continuing to warn a global recession is possible if inflation is not brought under control and consumers start to curb their post-pandemic spending, global sharemarkets have rallied strongly since the lows of mid-June. It’s a rally that has been dubbed the “most hated” because it is precisely what governments and monetary authorities don’t want to see - a sign there is still plenty of liquidity in the [...]

12th August 2022 Have we seen the bottom of the market? That's the question day traders and equity managers worldwide are asking after an unexpectedly robust start to the year's second half. In the US, the S&P 500 (tracking the market's biggest stocks) is up around 6.95 per cent over the past month. Locally, the S&P 200 is up around 6.4 per cent over the month. Adding to the good news was last night's US inflation figures showing headline [...]