Investments

Brad Matthews, the Hillross economist, has written an article on the recent falls in Global Markets. As I write markets in Australia have bucked the newspaper headlines this morning and are up nearly 2%. We are certainly in volatile times when good asset allocation is very important.

A bias towards investing in local shares and property is common and understandable. Unfortunately for many Australian investors this means missing out on the potential rewards of international investments – healthy returns and risk reduction through diversification of their investments across asset classes. Each asset class usually exhibits different risk and returns to various market cycles and events. In turn... Read more

By Shane Oliver, Head of Investment Strategy & Chief Economist from Oliver’s Insights, AMP Capital, Edition 18 2015 Key points In response to pressure from APRA, lenders are starting to tighten lending conditions to property investors. This is designed to slow property investor lending, particularly into the strong Sydney property market, while at the same time allowing the RBA flexibility... Read more

By Shane Oliver, Head of Investment Strategy & Chief Economist from Oliver’s Insights, AMP Capital, Edition 21 2014 Key points on Share Market Risks Concerns about US shares being overvalued are overdone. The conditions are still not in place for a major top in share markets: valuations are reasonable, the global economy is on the mend, monetary conditions are easy... Read more

The final step to retirement is one of the most anticipated life events. For many people though, there is some apprehension, particularly when it comes to money. To ease your concerns about post-retirement finances we urge you to talk to your financial planner at least 5 years before you expect to retire. With their help you can assess your current... Read more

By Shane Oliver, Head of Investment Strategy & Chief Economist from Oliver’s Insights, AMP Capital, Edition 9 2014 Key points While the global economy is gradually mending, returns will still be constrained and volatile relative to the long term bull market that got underway in the 1980s. As a result asset allocation will remain critically important for investors – particularly... Read more

By Shane Oliver, Head of Investment Strategy & Chief Economist from Oliver’s Insights, AMP Capital, Edition 5 2014 Key points For periods of time it may pay to back the crowd in investing, eg, when a bull or bear market is developing. But at extremes the crowd is invariably wrong. Eventually everyone who wants to buy will have done so... Read more

At its meeting today the Reserve Bank Board announced interest rates would remain unchanged at the record low level of 2.5%. The last rate cut took place in August 2013. In their statement, the Board said “monetary policy is appropriately configured to foster sustainable growth in demand and inflation outcomes consistent with the target. On present indications, the most prudent... Read more

How do tax credits work? Tax credits are received by the shareholder with franked dividends. This is a credit for tax that has already been paid by the company at the rate of 30%, before the company’s profit was distributed as dividend. The shareholders income from dividends will only be taxed at the difference between their marginal tax rate and... Read more

As part of the Stronger Super measures, the Government recently introduced new obligations for SMSF Trustees. In addition to requiring a regular review of the fund’s investment strategy, trustees need also consider insurance cover for the fund’s members. Insurances may include life, TPD (total and permanent disablement), trauma and income protection. There is no obligation to take out a particular... Read more