Economic Update February – infographic

Published: February 15, 2018

February 2018 Take a visual tour of markets during January. There were strong gains in global shares, China’s share market rocketed up, and government bond yields rose sharply in Europe and the US. View full infographic for January markets >>

Chart of the week: “Back to the future” on share volatility

Published: February 13, 2018

  VIX Volatility Index Source: US Federal Reserve, St Louis  View larger chart US shares have been in turmoil since February 2nd. The announcement that US wages growth had accelerated to its fastest pace since 2009 was the catalyst for this sharp share selloff. However this US inflation surprise was actually magnified into a shock […]

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Why your chances of a pay increase could finally be improving

Published: February 12, 2018

With 2018 now underway, many Australians may have noted ‘pay increase’ in their new years’ resolutions list. While the economic conditions over the past few years may not been ideal for having successful conversations with your boss around remuneration, MLC’s Senior Economist Bob Cunneen explains how changing economic factors could lead to an improving environment […]

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Wall Street finally awakes to a “clear and present danger”

Published: February 7, 2018

US shares vs Government bonds Source: Federal Reserve St Louis. Wall Street has fallen -4% over the past week. This was off the back of record highs on January 26 with the S&P 500 Index peaking at 2872.87 (black line). What’s behind the share correction? Well the “bears” would argue that US shares were already […]

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Monetary Policy Decision – Statement by Philip Lowe, RBA Governor, February 2018

Published: February 6, 2018

At its meeting today, the Board decided to leave the cash rate unchanged at 1.50 per cent. There was a broad-based pick-up in the global economy in 2017. A number of advanced economies are growing at an above-trend rate and unemployment rates are low. Growth has also picked up in the Asian economies, partly supported by increased […]

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2018: A balancing act

Published: January 24, 2018

Fidelity's Investment Director, Tom Stevenson, shares his thoughts on investing in 2018. Most of the time investors don’t need to think too much about market timing or asset allocation. The long-term trajectory of financial markets is up and the only sensible thing to do is to be fully invested and allow the odds to work […]

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Beyond share prices

Published: January 24, 2018

Investors shouldn't overlook that there are two components to sharemarket returns – dividend yield and capital gains (or losses). Few investors would have missed the news reports of late pointing out that although Australia's sharemarket has broken through the 6000-point mark, it's still below the record pre-GFC high. (See What's in a number? – Smart […]

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Four issues for investors to keep on the radar in 2018

Published: January 22, 2018

“The inevitable never happens. It is the unexpected always.”  John Maynard Keynes (1883 -1946) 2017 was a year of surprises and shocks. This year is likely to bring its own remarkable events in economics and politics. So rather than trying to predict precisely the twists and turns of the future, here are four broad issues that […]

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2017: The year in review

Published: January 19, 2018

A very rewarding year for investors 2017 was a very positive year for investors, particularly those with substantial exposure to shares (see Table 1). Growth across the global economy was more synchronised than for some time due to a recovery in the eurozone, promising signs of improvement in Japan’s economy and solid conditions in the […]

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Become a better investor through your holiday reading

Published: December 13, 2017

Behavioural economist Daniel Kahneman – who teaches us to control our damaging behavioural traits to become better, more-disciplined investors – continues as a powerful force on the best-seller lists as 2017 draws to a close. Kahneman's Thinking, fast and slow has been on The New York Times bestselling non-fiction paperback list for 147 successive weeks or almost three years. […]

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