The low interest rates of recent times along with periodic turmoil in investment markets has provided us with a reminder of the importance of the income (cash) flow or yield an investment provides. It’s particularly important for those relying on investment income to fund their living expenses. As with all investment topics, investing for income can seem complicated and daunting once you move beyond bank deposits but in fact it’s really quite simple. So this note looks at five charts I find useful in understanding investing for income or yield.
As the first quarter of 2017-18 draws to a close, it's worth checking whether you are making the most of your ability to make regular salary-sacrificed super contributions.
We tend to take shortcuts when making numerous decisions in our lives, such as choosing a restaurant or when buying a new car. But don't take shortcuts with investment decisions.
Whether it's snorkelling on the Great Barrier Reef or going on safari in the Serengeti, your next holiday will cost money. It's much better to save as much as you can before you leave, so you don't rely entirely on your credit card. You don't want to spend the next year paying off your trip debts.
This month of October often creates apprehension amongst investors given its historic track record with the 1929 and 1987 share market crashes. And it was in October 2007 that US shares peaked ahead of 50% plus falls (in most share markets) through the Global Financial Crisis (GFC). From the post-GFC share market lows in March 2009, US shares are up 278% and global shares are up 196% to new record highs and Australian shares are up 92%.
World energy demand is expected to grow at an annual rate of 1% over the next 25 years. While renewable energy use will continue to grow, fossil fuels will remain the principal energy source. However, natural gas is the fastest growing fossil fuel and coal will continue to lose market share. This represents a significant opportunity for capital expenditure in energy infrastructure as the break-even price of shale oil continues to decline.
The post-GFC world of record low rates and quantitative easing (QE) created many ‘fashionable’ asset classes that outperformed, such as yield plays and defensive growth stocks including big tech companies like Amazon.
The AMP Capital Wholesale Australian Property Fund recently bought Stage 1 of the Connect Corporate Centre in Mascot, Sydney, a sleek, brand-new building close to the Sydney CBD valued at $43.6 million.
Banks globally are better value than local banks for share market investors but our “big four” still don’t look overvalued, says Shane Oliver, AMP Capital head of Investment Strategy and Chief Economist.
A common narrative on the Australian housing market is that it’s in a giant speculative bubble propelled by tax breaks, low interest rates and “liar loans” that have led to massive mortgage stress and that it’s all about to go bust, bringing down the banks and the economy with it. Recent signs of price falls – notably in Sydney – have added interest to such a view.