Summary of Federal Budget 2021/2022

How will the Federal Budget affect you? During this year’s Federal Budget announcement Treasurer Josh Frydenberg stated “Australia is back!”. The Budget proposes positive changes to superannuation, an extension of the low and middle income tax offsets and a boost to aged care services. Summary We’ve summarised some of the key points from the Budget below but, remember, these are subject to the passing of legislation: • From 1 July 2022, if you’re aged 67 to 74 you will not be required to meet the work test to make non-concessional contributions and salary sacrifice contributions to super • From 1 July 2022, you can make downsizer super contributions if you’re age 60 and over (currently you need to be age 65 or over). • From 1 July 2022, if you’re a first home buyer you can release up to $50,000 (up from $30,000) from your voluntary super contributions to help you buy your first home. • The low and [...]

By |2021-05-12T12:46:51+10:00May 12th, 2021|Market News|0 Comments

‘Wall of Worry’

Shares Climb a 'Wall of Worry' - but is it sustainable?  by Dr Shane Oliver - Head of Investment Strategy and Economics and Chief Economist, AMP Capital After a roughly 35% plunge from their February high point to their lows around 23 March on fears regarding of global recession on the back of the coronavirus shutdowns, share markets have since rebounded sharply, led by US shares. The rally has pushed the Australian ASX 200 back through 6000 for the first time since March. A common concern is that the rebound in share markets is “too optimistic” and “irrational” – how can share markets rebound so rapidly when economic conditions are so weak, coronavirus uncertainty remains high, the US is seeing civil unrest and US/China tensions are rising? I must admit that I have also been surprised by the speed of the rebound and think maybe the markets are ahead of themselves. But I have seen this happen before and [...]

By |2020-06-16T10:28:36+10:00June 16th, 2020|Market News|0 Comments

Three realities and three mistakes

If market declines make you nervous, then you’re not alone. Especially now, when COVID-19 and its economic impact are fuelling feelings of uncertainty around the world. But while bear markets can be extraordinarily difficult, they also can be moments of great opportunity. Investors who find the courage and conviction to stick to their long-term plans are often rewarded as markets bounce back. To help put recent markets into perspective, we outline three facts about market recoveries and three mistakes that investors should avoid. Three facts about market recoveries Fact #1: Recoveries have been much longer and stronger than downturns The good news is bear markets have been relatively short compared with recoveries. They can feel like they last forever when we’re in them but in reality, they are much less impactful compared to the long-term power of bull markets. Although every market decline is unique, in the US, the average bear market since 1950 has lasted 14 months. The average [...]

By |2020-06-10T14:10:02+10:00June 10th, 2020|Market News, Tips and Other News|0 Comments

Uncertainty, fear, toilet paper and investing.

Uncertainty, fear, toilet paper and investing An article from Bruce Apted - Head of Portfolio Management - Australia Active Quantitative Equities • What can panic buying of toilet paper tell us about investing? • Has the baby been thrown out with the bath water? • Recent correction largely typical What panic toilet paper buying can tell us about Investing Most of us have seen photos of empty toilet paper shelves in the super markets. What was your emotional response? Did you think about buying toilet paper too? Despite assurances from the government and suppliers that we have no shortages, fear can take hold of our decision making especially when there is uncertainty. As humans we are deeply influenced by the crowd. Faced with uncertainty our decisions tend to be more emotional. In this monthly note we take a look at the recent market correction in the context of human behaviour. Uncertainty and emotional decisions are part of everyday life [...]

By |2020-04-01T10:34:04+11:00April 1st, 2020|Market News|0 Comments

The case for Calm with COVID-19

https://www.ampcapital.com/au/en/insights-hub/Videos/2020/march/the-case-for-calm-with-covid19?csid=1229034487 Please click on the link to watch the Webinar from Dr Shane Oliver - Head of investment strategy & Economics & Chief Economist at AMP Capital. This isn’t the first human health emergency we’ve seen, and it won’t be the last. Shane Oliver shares his views and projections on the COVID-19 outbreak, drawing on tried-and-tested lessons for managing and protecting investments during a crisis. This is a plain English webinar, that is extremely informative about the current market conditions and what you can expect going forward. If you have any concerns or questions please contact Bruce

By |2020-03-18T09:54:18+11:00March 17th, 2020|Market News, Tips and Other News|0 Comments

Market Fall On Oil Price

What has caused the Market Fall on Oil Price & Coronavirus Shocks? 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. Why have share markets fallen this much? A case of two shocks Coronavirus fears for global economic growth Share markets have fallen following growing concerns over a global Covid-19 (a.k.a. coronavirus outbreak). This virus is related to the SARS outbreak that affected Asia, notably China in 2003. It has proven to be difficult to control and sparked outbreaks outside of China, across much of the world with Italy, Iran and South Korea the most notable cases. As the outbreaks outside of China escalated, investors retreated from shares and fled to safe assets such as bonds as [...]

By |2020-03-17T13:44:37+11:00March 17th, 2020|Market News, Tips and Other News|0 Comments

Market Fall on Coronavirus Fears

Recent market falls Share markets fell last week with the Australian market experiencing one of its worst weeks since August 2011 (when people thought the EU would break up). Negative returns in any given period can happen in the share market with this week standing out for its severity. However, we also see historically shares have lost value in approximately 22 weeks out every 52 weeks since 1980. It is not a rare thing to see in the share market. Shares lost money because a rise in Covid-19 (a.k.a. coronavirus) cases outside of China saw investors sell out of shares and look to safer assets such as bonds or gold. This is because efforts to combat the virus will likely see travel, trade and business activity either slow or shut down temporarily. That would see weaker demand for goods and services, so business profits and wages are likelier to struggle in the short term. Major movers in Global Markets [...]

By |2020-03-04T13:11:39+11:00March 4th, 2020|Community Activity, Market News|0 Comments

International Markets Roundup

February 5 2020 - International Market Roundup  The Nasdaq hit a record high on Tuesday and the S&P 500 posted its biggest one-day gain in about six months as fears of a heavy economic impact from the coronavirus outbreak waned after China's central bank intervened. Asia Chinese stocks ended higher on Tuesday as the central bank vowed to stabilise the market, regaining some ground from the coronavirus-led rout that erased almost $400 billion in market value from the Shanghai benchmark in the previous session. The Shanghai Composite index closed up 1.3 per cent at 2783.29 the biggest daily gain since 13 December, 2019. The blue-chip CSI300 index jumped 2.6 per cent, clocking its biggest daily gain since 1 July 2019. CSI300's sub-index for the financial sector gained 2 per cent, the consumer staples sector jumped 2.9 per cent, the real estate index were up 2.2 per cent and the healthcare sub-index climbed 3 per cent. Hong Kong stocks climbed [...]

By |2020-02-06T10:51:47+11:00February 6th, 2020|Market News|0 Comments

No Grizzly Bears in This Market

An article by Shane Oliver; Share markets remained under pressure last week but I remain of the view it’s unlikely we’re sliding into a grizzly bear market as conditions aren’t in place for recession in the US, globally or Australia US shares fell 3.8%, Eurozone shares lost 1.6%, Japanese shares fell 0.2%, Chinese shares fell 3.5% and Australian shares declined 0.3%. Reflecting the “risk off” tone bond yields fell, credit spreads widened and commodity prices fell, with the oil price down another 11% over the last week, leaving it down 34% from its high in early October. The $US rose slightly and this weighed on the $A. Shares retesting October lows – double bottom or resumption of the slump? Share markets fell back to around their October lows over the last week. A retest of the lows is quite normal after the sort of fall we saw in October. Whether markets form a double bottom and head back up or [...]

By |2019-03-12T11:25:38+11:00December 6th, 2018|Market News, Tips and Other News|0 Comments

The October Share Market Scare

Share Markets Fell sharply in October, led lower by the technology-heavy NASDAQ index in the US. Many major market indices are now in negative territory for the calendar year. A notable feature of market behaviour through October was that Bond markets also came under downward pressure. Diversifying into bonds turned out to be a less effective tool in mitigating volatility than in it has been over the last 5 years. Defensive diversified funds with a large commitment to bond markets experienced a disproportionately large increase in realised volatility. This article seeks to provide an explanation for the downturn and address the outlook for share markets. The main points are: The fall in equity markets appears to have been triggered by a sharp rise in US bond yields; It’s a feature of share markets these days that when they fall, they fall sharply; While the rise in bond yields was driven by growing confidence that US economic activity is likely [...]

By |2019-03-12T11:25:38+11:00November 29th, 2018|Market News|0 Comments
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