The "gradually" maturing investment cycle – what is the risk of a US recession?

Published: February 21, 2018

The period since the Global Financial Crisis (GFC) has seemed unusual in the sense that periodic crises and post GFC caution prevented the global economy from overheating and excesses building, in turn preventing the return of the conventional economic cycle. Many of course concluded this was permanent and that inflation would never rise again (with […]

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Downsizing should be a choice, not a wealth strategy

Published: February 19, 2018

Downsizing to a coastal town or regional hub can hold lifestyle appeal, but don't bank on it as a strategy to fund your retirement. For many empty nesters, who may not have had the benefit of employer-paid super throughout their working life, the value of the family home can be seen as the jewel in […]

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Australian’s love affair with debt – how big is the risk?

Published: February 15, 2018

Introduction If Australia has an Achille’s heal it’s the high and still rising level of household debt that has gone hand in hand with the surge in house prices relative to incomes. Whereas several comparable countries have seen their household debt to income ratios pull back a bit since the Global Financial Crisis (GFC), this […]

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What high household debt means for investors

Published: February 14, 2018

“High house-hold debt is Australia’s Achilles heel,” says AMP Capital Head of Investment Strategy and Economics and Chief Economist, Shane Oliver. “I’ve been thinking this for many years now and yet it seems to keep going higher.” Latest data from the Australian Bureau of Statistics puts total household liabilities at $2.466 trillion, or 199.7 percent […]

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Equities riding on fear not fundamentals

Published: February 14, 2018

“The only thing we have to fear is fear itself,” said Franklin D Roosevelt at his inauguration as US President in 1933. I think “the only thing we have to fear is the fear index itself” is a better description of where investors are at right now.  It’s been a wild ride on Wall Street […]

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The problem with the active vs passive debate

Published: February 14, 2018

How did we find ourselves here?  It’s a question I ask myself whenever I come across an article or when I’m drawn into a discussion comparing index fund returns with the after-tax returns of active fund managers. And I’m asking it a lot lately.  As head of AMP Capital’s Multi Asset Group, the debate is […]

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Industrials: top pick for real estate sector

Published: February 14, 2018

The sudden market realisation that US borrowing costs are likely to rise significantly this year will drive demand for real estate investments that offer income growth, according to AMP Capital Head of Real Estate Research Luke Dixon. The US stock market endured its biggest plunge in six years earlier this week, triggering ongoing volatility across […]

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The pullback in shares – seven reasons not to be too concerned

Published: February 9, 2018

The pullback in shares seen over the last week or two has seen much coverage and generated much concern. This is understandable given the rapid falls in share markets seen on some days. From their highs to their recent lows, US and Japanese shares have fallen 10%, Eurozone shares have fallen 8%, Chinese shares have […]

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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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Love and money? It’s not about control

Published: February 5, 2018

With Valentine's Day around the corner, it's a good time to explore shared ideas, and how you manage money as a twosome. Our approach to managing household finances can make a big difference to the health of a relationship. Thankfully, the old line about “I earn the money. She spends it” no longer has relevance […]

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