Following a decade of rising share markets since the Global Financial Crisis – even further, the best part of the last 30 years has seen progressively lower interest rates, higher debt, and a favourable backdrop of stable inflation – passive risk management has been hiding behind a veneer of strong share market returns.
Finding companies able to pay out high dividends is one thing – we have means to do this quite easily in a quantitative way, meaning we can rank the share market according which companies paid the highest dividend in the previous year or over the past few years.
Have a plan to pay down your travel debt
If your debt is on a credit card, work out how much extra you can put towards your card and crunch the numbers using our credit card calculator. You will be surprised how fast you can pay it off with small extra repayments over a year, and how much interest you will save.
If you haven’t heard of buy now, pay later services, or are keen to know more, we explain what they are, how they work and when it’s possible you could run into financial strife if you’re not careful.
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 talk of structural stagnation, the Amazon effect, etc). However, it’s becoming increasingly clear the global economy is moving out of its post GFC funk – with growth picking up and signs that inflation will too (led by the US) – and arguably returning to a more normal investment cycle. The pullback in shares and surge in volatility seen this month likely indicates an adjustment in investor expectations to reflect this. This note looks at what to watch.