Economy

ASX rout opens door to selective buying

ASX rout opens door to selective buying

After a horror October so far, the Aussie sharemarket is the cheapest it’s been since 2015.  The benchmark ASX 200 index is trading on a 12-month forward price-to-earnings ratio of 14.7 after starting the month at 16, according to JP Morgan. That is well below the three-year average P/E of around 16.2, but it’s pretty much […]

Interest Rates Are Rising Because The Economy Is Strengthening

Interest Rates Are Rising Because The Economy Is Strengthening

I have been predicting higher interest rates, a stronger economy, and healthy returns in equities for a long time. For years I’ve gone against conventional wisdom, which typically worries that rising interest rates will choke off growth. Conventional wisdom, however, ignores an important detail: whether rising rates are the result of aggressive Fed tightening or […]

America and China and their Trade Tarrifs

America and China and their Trade Tarrifs

  IT WAS only a matter of time before China hit back at the United States amid their growing trade war. The Chinese Communist Party has announced it will levy tariffs on $US60 billion ($AU83 billion) worth of American goods, following President Donald Trump’s decision to raise tariffs on $200 billion of Chinese imports. The […]

ANZ and Westpac just successfully used blockchain on commercial property deals

ANZ and Westpac just successfully used blockchain on commercial property deals

  Two major Australian banks have successfully used blockchain, instead of paper, for bank guarantees on commercial property leasing.  ANZ and Westpac teamed with IBM and shopping centre operator Scentre Group to digitise the guarantee process.  The trial used distributed ledger technology to replace paper-based guarantee documents, resulting in a single source of information with reduced potential […]

Were are our tax dollars going?

Were are our tax dollars going?

The Budget   Every year, each level of government is required to prepare a budget to show how tax revenue will be collected (or ‘raised’) and how it will be spent. The Australian Federal Budget provides a well-known example of this process. The Australian Federal Budget is prepared by the treasurer and presented to parliament. After the […]

The benefits of solar power

The benefits of solar power

Using the Sun to power your home can help reduce your electricity bills and your carbon footprint. Giving you access to a renewable and clean source of energy, we take a look at how a solar power system can benefit your home.  It doesn’t matter if it’s summer or winter, throughout the year our country bakes […]

Capital Market Efficiency and Australian Capital Markets

Capital Market Efficiency and Australian Capital Markets

What is an Efficient Capital Market?   A market where information regarding the value of securities are incorporated into its prices accurately and in real time. Since the value of securities fluctuates and reflect its present intrinsic value, an efficient capital market enables these fluctuations to be reflected in the securities’ current price.   An efficient capital market is one where share prices change and adjust rapidly according […]

Can you survive a sharp downturn?

Can you survive a sharp downturn?

You sit down with the annual report, spreadsheet ready to see what hidden gold may await.  In the Balance Sheet there’s an important measure of liquidity known as the Current Ratio; total current assets divided by total current liabilities.  This little gem gives you an idea of whether the business could quickly cover their short-term […]

ASX brightens up as investors parse earnings

ASX brightens up as investors parse earnings

Australian shares pulled off early lows to end with mild gains on Thursday, as investors focused on earnings from some of the country’s biggest companies.  The S&P/ASX 200 index rose 13 points, or 0.2 per cent, to 5890 while the broader All Ordinaries rose by the same point and percentage amount to 5995 and the […]

Canva’s $US1b valuation a boost for start-up nation

Canva’s $US1b valuation a boost for start-up nation

The high-profile capital raising by online design and publishing platform Canva is a timely reminder of the power of digital marketing to transform a great idea into a global business.  Canva could easily become Australia’s national start-up champion given its long list of achievements in such a short space of time.  The $US1 billion valuation of the company inherent […]