Newsletter – October 2024
The ASX 200 index exhibited fluctuations, reflecting a modest monthly increase, with banking and property sectors recovering while mining stocks faced challenges. Meanwhile, the S&P 500 outperformed, reaching a new high driven by strong technology and AI stock performances. The residential property market showed regional variations, with some cities experiencing growth while others saw declines, indicating a slowing momentum. The RBA's focus remains on stabilising inflation and monitoring the labor market. Different banks predict varying timelines for interest rate reductions.
What is Risk, Really?
I recently engaged with an insightful video presentation by Howard Marks, author of The Most Important Thing Illuminated: Uncommon Sense for the Thoughtful Investor. He emphasises that risk is not just about volatility but the probability of loss. Marks highlights the many forms of risk, such as missing opportunities or being forced to sell at a low point, and provides key points on understanding and managing risk wisely. His counterintuitive insights, like how an asset’s price drop can make it less risky, are particularly thought-provoking.
How to Build a Sustainable Family Budget
With the rising cost of living and inflation affecting many households, Australian families are feeling the squeeze. The Consumer Price Index (CPI) increased by 3.8% over the twelve months to June 2024, making it essential to create a sustainable budget. Here’s how you can manage your finances effectively while being mindful of both your wallet and the environment.
A Holistic Approach to Your Financial Well-being
Mental health plays a vital role in how we approach financial decisions and manage our everyday lives. Stress, anxiety, and other emotional challenges can significantly influence your financial choices, creating a cycle that can be tough to break. In this article, we discuss signs of financial stress and provide practical steps for managing it.
Understand Superannuation Trends and Make Better Choices
Are you making the most of your retirement savings? Recent data from the Australian Prudential Regulation Authority (APRA) has shed light on some interesting trends in how Australians are choosing to use their superannuation in retirement. What the Data Shows Despite efforts to encourage retirees to use income stream products, many are still opting for lump sum […]
Newsletter – September 2024
In a month that defied the typical “September effect,” both the Australian S&P/ASX 200 and the US S&P 500 saw gains, with the ASX 200 increasing by 0.95% and the S&P 500 rising by 1.49%. The housing market also showed resilience, with national dwelling values rising 0.5%, though the pace of growth is moderating. The RBA kept the cash rate target unchanged at 4.35%.
How Global Rate Cuts Affect Our Term Deposits
Australia’s major banks have recently decided to lower their term deposit interest rates. This change comes at the same time as US Federal Reserve Chair Jerome Powell announced that the US is likely to cut interest rates soon. This development has important implications for both the Australian and global financial markets, presenting opportunities for investors […]
Patience is a Powerful Strategy
In the fast-paced world of investing, it’s all too easy to get caught up in the whirlwind of daily market movements. Charlie Munger once said “The big money is not in the buying and selling, but in the waiting”; it’s a powerful reminder that patience is a cornerstone of successful investing. As we ride the […]
Understanding The New $3 Million Super Tax and How It Affects Your Wealth
With significant changes to superannuation tax laws on the horizon, it is essential for high-net-worth individuals to understand the potential impact on their wealth. The looming increase in tax rates on superannuation balances exceeding $3 million has generated substantial debate. As the implementation date draws near, taking a thoughtful and informed approach is vital. However, […]
Newsletter – August 2024
In August 2024, the Australian S&P/ASX 200 showed cautious optimism with a modest gain, influenced by inflation data and the RBA’s steady cash rate. The US S&P 500 outperformed, driven by positive economic news and potential interest rate cuts by the Federal Reserve. The Australian residential property market saw a national home value increase, with notable growth in Perth and Adelaide, while Melbourne and Hobart experienced declines. Inflation in Australia eased, but the RBA maintained the cash rate, anticipating economic growth in 2025.
Building Wealth Across Decades: Financial Strategies for Your 20s to 40s
Understanding how financial needs evolve throughout life is crucial for effective financial planning. The life-cycle approach recognizes that priorities shift from managing debt in early adulthood to wealth accumulation in mid-life and retirement planning in later years. By aligning financial strategies with one’s current life stage, individuals can create a more responsive and personalised plan […]
Newsletter – July 2024
In July 2024, both the ASX 200 and the S&P 500 exhibited positive performance, with the ASX 200 outperforming the S&P 500. The Australian residential property market also demonstrated resilience and growth despite economic challenges. However, affordability issues remain a significant concern. Market predictions suggest that the RBA may maintain its cash rate at 4.35%, though further rate hikes are still possible if inflation data continues to show persistent price pressures.