Fundamentals

7 Principles For Successful Long-Term Investing

1 – Plan On Living A Long Time Thanks to advances in medicine and healthier lifestyles, people are having longer lives. This chart shows the probability of reaching the ages of 80 or 90 for some who are aged 65 today. A 65 year-old couple may be surprised to learn that there is a 51%…

Wealth and poverty in Australia

Helen Westerman and Wes Mountain The Household, Income and Labour Dynamics in Australia (HILDA) Survey, which started in 2001, collects information on Australian households, focusing on economic and subjective well-being, labour market dynamics and family dynamics. The infographic below charts the changes in wealth and poverty of Australian households over the 15-year history of the…

Vital Signs: expect more turmoil

The Reserve Bank of Australia left the benchmark cash rate at 2.0% on Tuesday, summarising the thinking as follows: “At today’s meeting, the Board judged that there were reasonable prospects for continued growth in the economy, with inflation close to target. The Board therefore decided that the current setting of monetary policy remained appropriate. “Over…

Three factors pushing Australian banks into a retreat home

History shows that successfully becoming a multinational bank operating in many countries is difficult. While many banking skills are transferable across national borders, there are institutional and cultural impediments to overcome. And as ANZ’s strategy shift away from Asia announced last week might demonstrate, the regulatory barriers are significant, particularly for expansion into Asia. First…

Vital Signs: inflation under control, Aussie dollar harder to wrangle

The key economic news this week concerned what the United States Federal Reserve did with interest rates, and what the Reserve Bank of Australia is likely to do. The Fed kept interest rates at their existing level (of 25-50 basis points). Last year they raised rates from their historically low level for the first time,…

Investor Signposts: Week Beginning January 11 2016

Craig James – Chief Economist – CommSec Jobs and lending in focus ·       Another healthy batch of statistics will be released in Australia in the coming week with the focus on the job market and lending. ·       In Australia, the week kicks off on Monday with the release of…

Investor Signposts: Week Beginning December 21 2015

Savanth Sebastian – Economist – CommSec The final countdown ·       The cupboard is largely bare in terms of key domestic economic indicators or events until January 4. Still, the private sector credit or lending figures are released on New Year’s Eve. ·       In terms of private sector credit, lending…

Investor Signposts: Week Beginning December 14 2015

Craig James – Chief Economist (Author) – CommSec Last hurrah ·       There are no economic statistics of note domestically from December 17 to January 6. So the coming week represents the last hurrah. And a big week is in prospect in the US with the Federal Reserve expected to lift rates for…

Why is the business world suddenly clamouring for a global carbon tax?

Among the various interests at the Paris climate talks, it is arguably the voice of business that has emerged most clearly. Many business leaders are now saying that if the world is intent on reducing greenhouse gas emissions, there must be a worldwide price on carbon and a framework for linking the 55 schemes that…

How 1.5 became the most important number at the Paris climate talks

One of the final obstacles in the way of a binding agreement at the Paris climate talks comes down to a simple number: 1.5. Limiting warming to a 1.5? temperature rise above pre-industrial levels is one of three potential targets on the table as negotiations approach the crucial final days. The other options are a…