Investment

Australia’s stock market fortunes follow the US. So you absolutely need to keep your eyes on that market. The good news is that the US economy remains strong. It’s the most resilient developed economy in the world. But it simply cannot avoid the business cycle. And the evidence suggests the business cycle is turning down.…

Conventional approaches to fixed income investing rely on bond yields to generate returns. Most of the returns come from accumulating portfolios of bonds to harvest yield. Simplifying a little, bond yields represent the return from holding bonds to maturity and comprise the bonds’ interest income plus any discount or premium embedded in bond purchase prices.1…

The Power of Compound Interest On the topic of compound interest, Albert Einstein famously said, “Compound interest is the eighth wonder of the world. He who understands it earns it… He who doesn’t, pays it…” Compound interest, in simple terms, allows you to earn interest on your interest. It is the result of reinvesting interest, rather…

. Importantly, the level of risk that you are comfortable with can be different from the next person. Given this, when it comes to investing inside and/or outside of superannuation, whether over the short, medium or long-term, one of the first ports of call is determining an appropriate investment risk profile. A common way to do…

Understanding your own Appetite for Risk Understanding your appetite for risk is key when considering an investment strategy. Risk profiling is the process of finding your correct level of investment risk. This takes into consideration your risk capacity and risk tolerance. Risk capacity is the level of financial risk you can afford to take, and…

Franking credits and the uplift in income they deliver are crucial for every retiree’s investment strategy. The income benefits of franking credits are an intrinsic part of the strategy many investors adopt to attain their retirement goals. These credits, from Australian equities and hybrids, boost the average dividend yield on Australian shares by around 1.5%. But those benefits…

Blue chip’s not a underwrite for investment success Blue chip stocks are considered safe investments because they are the largest and most recognised companies in the world. In most cases large companies will be safe investments however size does not always guarantee safety. In some cases, blue chip companies can become complacent and subject to…

In such a volatile environment, here’s what the experts advise you to bear in mind: 1. Volatility is a normal part of long-term investing Financial markets hate uncertainty and are also prone to over-reacting to events that may only have an impact in the short-term. So take a step back and be prepared for volatility,…

Investors’ optimism regarding future growth of global equities market entering in 2019 is expected to be more cautious, according to global equities investment manager Hexavest, an affiliate of Eaton Vance. Additionally, investors expected the pace of monetary policy normalisation should slow in the US and with financial conditions tightening in the US over the last…