Investments

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Do you have or are you considering creating a family trust? Here in Australia they are becoming increasingly popular and with good reason. They have unique advantages and can help you with your financial planning, investments and tax distribution.

Bitcoin, Ethereum, Tether, Dogecoin… it is an ever expanding field and there are thousands of different cryptocurrencies in existence. We take a look at the realm of virtual currencies and Graeme Quinlan discusses why we don’t invest in cryptocurrency.

The term ‘high yield’ sounds like a great opportunity to be able to boost your investment income… but you need to be mindful of the risks. While some high yield investments are beneficial to include within a diversified portfolio you should always do your homework.

An economic market review from Tim Farrelly, our external asset allocation consultant. In his review he discusses five key themes that are currently impacting the way in which portfolios are put together. You can watch the full video or read the summary below.

Almost twelve months on from March 2020, and it’s been a tumultuous year. As we have reported throughout the months we have experienced a great deal of volatility across global markets… but as we look ahead, while there are still some hurdles to overcome, positivity is returning.

Quantitative easing is an unconventional monetary policy utilised by central banks around the globe when trying to encourage economic recovery. It is a measure that has been regularly employed by the US Federal Reserve since the 2008 Global Financial Crisis.

We believe that the key to successful investing is maintaining a long-term view. The short term might be a thrill, but long-term investing provides a more stable, consistent approach to securing your financial future.

Investment markets are cyclical in nature. Ups and downs occur regularly, but over longer periods of time, there are recognisable traits associated with each stage that can be clearly categorised.

The FY20 company reporting season was under intense scrutiny this year as investors waited for information about the impact of COVID-19 on company fundamentals. We look at how dividends have been impacted and the expectations for FY21.

Are we set for another market fall? Or is it the case that markets seriously over-reacted in the first place and are now coming slowly to a more accurate assessment of the long-term risks involved in COVID-19?

March 2020 was an extraordinary month on the stock markets. The uncertainty surrounding a global pandemic saw the All Ordinaries index at 7,230 at close on 21 February… 30 days later we closed at 4,560 – a 37% drop.

Sequencing risk can impact your retirement income… but our unique Investment Philosophy allows us to build portfolios that are robust enough to withstand the market volatility that triggers the effect.

Owning your home outright is often a key financial goal for many Australians. But should you be solely focused on paying your mortgage off early to save on interest costs? Or are there other ways to optimise the spare dollars you have?

When you start investing in the share market, you embrace the process with optimism. Unfortunately, market volatility can dent your optimism and set you on a roller-coaster of emotions.

During March and April, we have seen acute market volatility, and for many investors this has been cause for concern. But at First Financial, our unique Investment Philosophy has helped to minimise the effect on our clients’ portfolios.

Since writing our last investment update to you on 30 March, most investment market indices are roughly at the same point. Read our full market update from 9 April 2020.

As we sit here after close on Friday the 13th – the last three weeks have seen almost all global markets shed 25% and oil drop 50%. It seems clear global markets have caught the Coronavirus…

No one could have foreseen how the world would start 2020. On 31 December 2019 a new type of coronavirus, now known as COVID-19, was discovered in Wuhan, China, and since then the outbreak has had a significant impact on the global investment market.

There were many defining moments that impacted the stock market over the last decade, but there is resounding acknowledgement that if you invested in equities ten years ago… then it’s most likely you have experienced overall positive performance.

With so much constant activity within the infrastructure sector, it can be beneficial for investors to treat infrastructure as a separate asset class for investment, rather than lumping it in with the equities part of their portfolios.

With a 24-hour news cycle constantly reporting on any small shift in tariffs, a disruption of commodity supply or even a late-night political tweet, it’s not surprising that financial markets are fluctuating.

As ethical issues such as climate change gain attention in the media, more people are considering the impact of their investment decisions. Ethical investing has been named a major trend in the financial industry in 2019.

Everyone would love to have a crystal ball to tell us what will happen in the world of investments. Knowing when to expect ups and downs in the market and being ready to act accordingly would certainly make it far easier to strike it rich quickly.

Financial experts used to think that long-term portfolio performance was due 90% to asset allocation and 10% to timing and selection, but recent studies have shown that investor behaviour can account for up to 50% of the portfolio performance.

A lot of people are talking about dividend imputation or franking credits. With a federal election on the horizon, politicians, the media and many shareholders are discussing what the potential policy change will mean.

It is our job to understand the investment world and to be aware of local and international developments that can impact the recommendations we make to our clients. Continue reading about three market influences to consider when investing in 2019.

Every investment recommendation made by a First Financial adviser comes with the tick of approval from our Investment Committee. The team has examined each investment option to ensure it meets our stringent criteria.

Diversification is a strategy that spreads the risk of your investments across a range of asset classes allowing you to build a balanced investment portfolio. In other words, it’s not putting all your investment eggs in one basket.

Shares that pay dividends are a popular option with Australian investors as they often provide a reliable source of return. This can provide a welcome cash injection or be used to reinvest for further growth.

Becoming a smart investor is about using your head, not going with your gut feeling. But how do you know if you’re making the best decisions for your financial future? It helps to take a look at the kind of thinking that often informs our decisions when it comes to investing

Borrowing to invest is an effective tool you can use to build wealth. You’ve probably heard it referred to as ‘gearing’ – either positive or negative. Gearing offers huge potential to build your wealth faster and is a great way to plan for the future.

How do you stop from panicking when a news headline shouts of recession? Suddenly the retirement plan you’ve been working towards for years looks like it’s about to halve in value.

Relying on your superannuation alone to accumulate enough wealth for retirement is increasingly unrealistic, especially with the changes to super contribution rules. So it’s more important than ever to consider investments outside of super.

We’ve been closely watching the US market. And we believe now is the time to reduce our investment exposure. It’s time to switch out of US shares and into more attractively priced markets like Australia and Japan.

Tim Rocks, Head of Market Research and Strategy, BT Investment Solutions looks at what could happen to markets should Donald Trump win the race to the White House.

Term Deposit Rates and Government Bond Yields have fallen dramatically on the back of the RBA’s efforts to stimulate the Australian economy. An alternative to Term Deposits that we have been using for many of our clients over the last 10 years are hybrid securities.

Australians love their dividend paying stocks. They pay a regular, tax effective income that provides cash flow for many of us. But is our love affair with these fully franked dividends detrimental to our market performance?

In this winter edition of Investment Solutions magazine, we focus on five take outs you should be aware of post federal budget 2016.

We have all been affected by lower interest rates in one way or another. It is great news if you are a mortgage holder. However, if you rely on income from your cash and term deposits to fund your lifestyle, low interest rates have indeed been bad news.

Britain has voted to ‘Leave’ the European Union (EU) with a vote of 52% leave to 48% stay. There is little doubt there will be implications following the exit vote, however the magnitude of these implications is up for debate.

Back in August 2015 we posted an update on the volatility local and global share markets were experiencing. Since that update in August, if you only paid attention to the media you could be forgiven for thinking that things have significantly deteriorated further.

Recently we have seen significant negative movements in local and global share markets, culminating in the worst single day of trading for our market since January 2009 on Monday.

As discussed in our last article, “Time in the Market” (February 2017), predicting the market is extremely difficult. Whilst we would all like to invest at the bottom of the market and sell at the top, the reality is that this is impossible to do.

Often, Financial Advisers use the phrase ‘time in the market’, not ‘timing the market’. Although this is a well-used phrase, I would like to explore what this means and the impact it may have on your portfolio.

With the funds management industry growing into one of Australia’s largest industries, with over $2.7 trillion in funds under management in more than 10,000 managed funds, it is crucial to have an understanding of what your fund manager is investing in.