This note looks at diversifying your investments. It will reduce their risks and volatility, but what does it involve?
The key points are as follows:
Diversification considerations
Spreading your risks
Creating a portfolio for you
A time for imagining
Market leaders have changed dramatically over the last ten years. We’ve seen the rise of companies that have either disrupted an existing industry or challenged incumbents. So what have we learnt from the past decade that we can apply for the future?
The financial power of women
A state-of-the-nation report on the barriers to women investing.
The key points are as follow :
The hurdles women face
What women want
Unlocking our financial power
Myths busted
What the investment industry can do
A level playing field in retirement
Australia slides into a “per capita recession”
This article looks at the outlook for the Australian economy following another quarter of very weak growth and what it means for investors.
The key points are as follows
Australian growth slowed even more in the December quarter. Growth may bounce back a bit this year, but the housing downturn will likely constrain it to around 2-2.5%.
As a result, unemployment is likely to drift up and wages growth and inflation remain lower for longer.
The RBA is on track to cut rates this year and the housing downturn will likely see Australian shares continue to underperform global shares.
Five charts and a table that are critical to watch regarding the global economy and markets this year
This note looks at five charts and a table that are critical to watch this year regarding the outlook for the global economy and markets.
The key points are as follows:
After a strong rebound since December share markets are at risk of a short-term pull back. However, despite this we see this year as being a decent year for share market returns.
Five key global charts to watch as to whether this will be the case are: global business conditions PMIs; global inflation; the US yield curve; the US dollar; and global trade growth.
US recession indicators remain ok, but the yield curve is worth watching.
Women and money: What needs to change?
Money & Life
With gender pay and super gaps coming up more often in the equality conversation, are we seeing meaningful change for women’s financial security and well-being or is there still a long way to go?
The main points are as follows:
Measuring to keep moving forward
Redefining relationships at home and work
A fresh perspective on finances
Support from experts and leaders
The drivers of change
Super Contributions Guide
Money & Life
As well as super guarantee payments from your employer, there are all sorts of ways to save more into super and boost retirement savings.
The main ways are as follows:
Super Guarantee contributions
Concessional contributions
Non-concessional contributions
Government contributions for low-income earners
Tax offset for low-income earners
Spouse contributions and tax offsets
Autumn Insights 2019
Financial Wisdom Insights
Working flexibly…. even in retirement & 5 ways women can take control
Today’s workforce offers a wealth of opportunities for Australians to shape their career paths – from self-employment and freelance work, to flexible working hours and career breaks. But while many older Australians may not have enjoyed this flexibility throughout their working lives, they now have more options available to find a work-life balance that suits them.
Some of the options offered are:
Ease into retirement
Become a consultant
Turn your hobby into a business
Take on a carer’s role
In many households, women often take a back seat when it comes to navigating their family’s financial future. But this can make it difficult for women to become financially independent – especially if they’re ever faced with divorce, separation or widowhood.
The 5 ways women can take control are:
Create a household budget
Keep track of spending
Boost your super
Review your will
Talk to your financial adviser
Lunar New Year money tips
ASIC’s MoneySmart
Eight money tips for a prosperous Year of the Pig
The Year of the Pig represents wealth and fortune, a great time to assess your finances and make a plan to improve your financial position. Our eight money tips will help you to take the first steps to creating your own prosperity.
The main points are as follows:
Focus on your money goals
Take charge of your money
Create a financial calendar
Change up your spending habits
Track your progress
Clean house and clean up your home loan
Plan for your future wealth
Become a savvy investor
The Royal Commission verdict is out
Money and Life
The FPA is continuing in its work to deliver better consumer protections and improve professional and educational standards as highlighted in the final Royal Commission report handed down by Justice Kenneth Hayne.
The key recommendations for financial advice are as follows:
No more trailing commissions
Ongoing advice fees to be annually reviewed
Reducing commissions on life insurance
A new disciplinary system for financial planners
Quarterly reporting of misconduct concerns
A renewed commitment to the clients’ best interests
Quarterly Market Insights - January 2019
Perpetual Investments
Please find below the new edition of the Quarterly Market Insights from the Multi Asset team at Perpetual Investments, which is a compilation of their thoughts and views of key issues in financial markets, the earnings and economic cycle, the interaction of policy makers, and how this affects investment goals.
The main points are as follows:
2018 will be remembered as a year where market volatility returned
The 2019 share market outlook is challenged as expectations remain elevated, growth is slowing across the world and margins are under considerable revenue and cost side pressure.
Global growth has entered its third deceleration phase of this cycle
After two years of above-trend growth, the global economy is set to return to a below-trend pace in 2019
Tips to make this year the best one ever
Money & Life
Making New Year resolutions are one thing. Actually sticking to them is an entirely different matter altogether. Here are some surefire tips to help you succeed.
The main points are as follows:
Let go
Ditch the expectations
Know your principles
Four ways to declutter your finances
Money & Life
Your home may be looking minimal and serene in 2019 thanks to author and TV host Marie Kondo. But could your finances do with some decluttering too? Find out how to go about it with our guide to simplifying your budget, bank accounts, super and debts.
The main points are as follows:
Less really is more
Budgeting based on your values
How many bank accounts?
Simplify your super
Do away with debt
Volatility: 10 key messages for investors
Fidelity International
Financial markets can be subject to periods of event-related volatility during which investor confidence can be significantly undermined. Here, we provide 10 key messages to help investors steer their portfolios through volatile times.
The main points are as follows:
Volatility is a normal part of long-term investing
Over the long term, equity risk is usually rewarded
Market corrections can create attractive opportunities
Avoid stopping and starting investments
The benefits of regular investing stack up
Four reasons the global economic outlook for 2019 looks positive
Shane Oliver, Head of Investment Strategy and Chief Economist.
Many investors were rattled by the equity market falls in late 2018, but Dr Shane Oliver says there are a number of reasons to suggest that in 2019 a well-diversified portfolio should deliver reasonable returns.
The main point are as follow :
This is a “mid-cycle” correction
No full-blown recession
Oil prices falling
Modest rate hikes or even cuts
The five big fears that shaped 2018
Shane Oliver, Head of Investment Strategy and Chief Economist.
It was always likely that 2018 would under perform compared to 2017, however five big fears shaped the market more than anyone had imagined.
The main point are as follow :
Fear of the Fed
President Trump’s trade war
China slowdown
Global desynchronisation
US dollar strength
Review of 2018, outlook for 2019 – another cycle extension
Shane Oliver, Head of Investment Strategy and Chief Economist.
The following note provides a review of 2018 and what it meant for investors and takes a look at the outlook for 2019. The key points are as follows:
2018 saw reasonable global economic and profit growth and still low interest rates but it has been a rough year for investors with worries about the Fed, trade wars and global growth causing volatility and poor returns.
2019 is unlikely to see the plunge into recession many fear with growth likely to stabilise supporting profit growth, the Fed is likely to undertake a pause in rate hikes and global monetary policy is likely to remain easy. The RBA is expected to cut interest rates.
Against this backdrop, share market volatility will likely remain high but markets should start to improve through the year.
The main things to keep an eye on are: the risks around the Fed, US/China tensions, global growth, Chinese growth and the property price downturn in Australia.
Not just about the money
Money & Life
Thinking of a new job in the new year? With wage growth staying low, better benefits and work-life balance could be something to look for in your next role. Find out about the latest workplace trends for supporting employees with their health, finances and work-life balance.
Debt – just how big a problem is it?
Money & Life
Recent figures show personal debt levels in Australia are among the highest in the world. So does this mean we’re heading for a debt disaster? Or are we doing the right kind of borrowing to get ahead with finances? Find out what kind of debts can be a problem and how to keep borrowing within safe limits.
Your no. 1 financial focus – decade by decade
Money & Life
Everyone has a different life journey they’re on. But getting on top of key financial goals as you follow your own path could see you enjoying a more comfortable lifestyle and being ready for the next chapter to begin. Read our guide to getting all your money matters sorted out, one decade at a time.