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Equity market rally set to boost income

For trust and income beneficiaries, the June quarter – much like the 2021 financial year – was mixed. Record low interest rates continued to put the brakes on interest income, and while there has been some recovery in dividends from the early days of the pandemic, they are still below 2019 financial year levels. On…

Investor Signposts: Week Beginning 19 July, 2021

Australia: Retail spending data and Reserve Bank hog the spotlight The release of provisional retail trade data is the highlight of the coming week. Minutes of the last Reserve Bank (RBA) Board meeting are also released with preliminary IHS Markit purchasing managers’ indexes for July. The week kicks-off on Tuesday when the RBA Board issues…

Investor Signposts: Week Beginning 12 July, 2021

Australia: Jobs data is the highlight The highlight in the coming week is the June jobs data. But both consumer and producer sentiment gauges vie for attention. The week kicks-off on Monday when the Australian Institute of Petroleum (AIP) issues the weekly data on petrol prices. And Datium Insights issues the weekly update on used…

The Weighing Machine

Advocates of the “Buy and Hold” school of investing have long clung to the reported quotation from Benjamin Graham, the acknowledged rather of value investing: “In the short run, the market is a voting machine but in the long run, it is a weighing machine.” Taken as written, the quote seems to imply a dichotomy…

Investor Signposts: Week Beginning 5 July, 2021

Australia: Reserve Bank ‘taper’ time? In the coming week the Reserve Bank (RBA) will be front-and-centre of investors’ minds with the Board considering whether to adjust its monetary policy settings, including its yield curve target and bond purchases. The week kicks-off on Monday with the release of the ‘final’ May retail trade figures. Preliminary spending…

Investor Signposts: Week Beginning 28 June, 2021

Australia: One year ends, another begins The coming week will be littered with reports looking back on the 2020/21 financial year and looking forward to 2021/22. The past year has been a surprisingly positive one for the Australian economy. And, providing virus cases are suppressed and more people ‘get the jab’, there is plenty to…

Scarcity drives opportunity

Scarcity is a prime mover in capitalist economies. The scarceness of a good drives price movements, substitution into alternatives and innovation to create workarounds. The unfettered pursuit of these responses allows for the smooth functioning of the economy and means that capitalist societies rarely face the line-up-in-a-queue shortages that have become the hallmark of more…

Investor Signposts: Week Beginning 21 June, 2021

Australia: Retail spending, trade, jobs and wealth data in the spotlight Preliminary retail and international trade data headline another busy week on the Aussie data docket. Purchasing manager indexes will be closely observed as will jobs and wealth figures. The week kicks off on Monday when the Bureau of Statistics (ABS) issues preliminary retail trade…

Why dividends make sense in an inflationary environment

The fallout from Covid-19 put pressure on corporate dividend payments in many sectors and markets. Now, as economies recover and earnings bounce back, dividends worldwide are poised to rebound. At the same time, while widespread fiscal stimulus may push the global economy into a period of higher inflation, history shows how dividend-focused investment strategies can…

Major countries pondering issuing digital national currencies

Is a watershed reengineering of money underway? Around 600 BC, the Chinese were among the first to invent money when they used coins worth the metal within to overcome the hassle of bartering. Around the first century AD, the Chinese invented paper and in the following centuries devised printing presses. These inventions plus the heaviness…