How much you need for a house deposit, and what you need to consider in making this decision.
The Great Lockdown continues to turn markets on their head. Last week, we dug into the unprecedented number of initial jobless claims coming out of the United States, which topped 22 million in a period of four weeks. It’s just days later, and we already have our next market abnormality: this time, traders were baffled by West Texas Intermediate (WTI) crude — the U.S. benchmark oil price — which somehow flipped negative for the first time in history. How is that possible? And how does it tie into the COVID-19 oil price crash in general?
Take a long-term view Investment results tend to vary more widely when you just consider the returns over a period of one year. Ten-year returns are generally much more stable and a lot more predictable as can be seen in the chart below.
What happened? • Global share markets continued to fall to start this week with the US share market down 10.8% and the Australian market down 9.7% on Monday, 16 March. • The US Federal Reserve cut interest rates by 1.5% this month from a range of 1.5% to 1.75% to a range of 0% to 0.25%. • In Australia the RBA cut rates by 0.25% from 0.75% to 0.5%. • There are expectations of another cut by the RBA this Thursday 19 March 2020. • Investors are worried about weakness in the global economy because of: o more Coronavirus cases outside of China, and o a collapsed oil price deal. • This saw investors continue selling their shares because they are concerned about the short-term impact on businesses from these threats.
What happened? • Global share markets have fallen in the last week as well as the Australian share market. • Investors are worried about weakness in the global economy because of o More coronavirus cases outside of China, and o A collapsed oil price deal • This saw investors continue selling their shares because they are concerned about the short-term impact on businesses from these threats.
The outbreak of the coronavirus has led to concerns about what its rapid spread could mean for global markets and economies. In this podcast, Hong Kong-based economist Stephen Green discusses the supply-chain disruptions already taking shape, which sectors stand to lose — or gain — from the crisis and how soon “business as usual” might be expected to return to China and global economies.
What happened? • Global share markets have fallen in recent days driven by a collapsed oil deal and coronavirus impacts. • The Australian share market fell 19.6% from its peak on 20 February 2020 to 9 March. • This means the gains of 2019 have been lost with the index back at Dec-18 levels.
From late December 2019 a new virus outbreak, officially called Covid-19 (a.k.a. “coronavirus”), emerged out of Wuhan, China. To date this outbreak was focused on China which accounted for 96.7% of 80,423 confirmed cases and 98.4% of 2,708 reported deaths (as at February 26). However, in recent weeks we have seen notable growth in cases particularly in South Korea and Italy as well as Japan, Iran and elsewhere in Europe.
This week’s thought and chart look at the swift drop in global equities and the questions investors should now ask about the direction of markets.
The relative performance of all asset classes over the past 20 years.
If you’re organised with your finances, the high cost of living doesn’t have to mean diminished savings.
Set a good example for your children with just a few simple changes. As a parent, you try to ensure your children have the skills to make smart financial decisions. For example, you tell them about the importance of saving or the power of compounding interest. But did you know that you could be sending them negative money messages without meaning to?
The investment world can change dramatically from one month to the next. But these secrets of successful investors never go out of style.
Purchasing an established business can be complex. Here's what you need to know.
At its meeting today, the Board decided to leave the cash rate unchanged at 1.50 per cent.
In 2018/19 • Low and middle income earners will benefit from tax savings as a result of an increase in the low and middle income tax offset. • The instant asset write-off threshold will increase from $20,000 to $30,000 for small and medium sized businesses with aggregated turnover of less than $50 million. • A one-off payment will assist eligible social security and DVA recipients with the cost of energy bills. • Aged Care funding will increase. From 1 July 2019 • The Partner Service Pension will be available to former spouses of veterans. From 1 July 2020 • People aged 65 and 66 will be able to make voluntary super contributions without having to meet the work test. • The age limit for spouse contributions will increase to 74. • More flexibility will be provided when calculating exempt current pension income
When we invest or deal with money do we misbehave? It is in our makeup to misbehave when it comes to money and investing. One of the psychological factors that has a huge impact on our financial decision making is our ego and so, before we go any further, the first thing you must do is let go of this and accept that you’re just as culpable of these misbehaviours as everyone else.
The value of investments and the income from them can go down as well as up so you may get back less than you invest. Past performance is not a reliable indicator of future results.
Equities rose strongly in January, after taking a battering in December. Bonds rallied in Australia, as markets increased the chance rate cuts. The AUD was supported by higher commodity prices.
Bitcoin is a type of digital currency known as a cryptocurrency. It operates on a decentralised peer-to-peer networked program on your computer, meaning that transactions can be conducted between a buyer and seller without the need for any third party oversight such as a regulator or bank. The underlying technology that makes all cryptocurrencies possible is the blockchain.
Help yourself avoid bad investments by doing some basic safety checks before you hand over your money.
Received a large sum of money? There are smarter ways to use it than treating yourself to a new luxury car or watch.