It’s spring in the northern hemisphere and the changed conditions in global markets are attracting much attention. While no-one knows whether these “green shoots” will last, they are a good reminder of how quickly the investment climate can change. (more…)
It’s that time again. With the end of the year looming and a new one about to begin, the crystal balls are getting a workout as media and market prognosticators publish their considered forecasts for 2009.
These “year-enders” are usually cooked up by editors ahead of time to fill gaps in the news schedule over the holiday season. Usually what happens is that a harried journalist, up against deadline, calls all the “usual suspects” to coax a quote out of them about next year’s outlook. (more…)
Every day it seems someone is seeking to compare the current financial crisis with the Great Depression of the 1930s. There’s no doubt these comparisons are an attention grabber. But how do today’s events really match up?
A search of a newspaper database reveals 30,000 mentions so far this year of the term ‘Great Depression’. References to dust bowls, long and winding dole queues and overflowing soup kitchens are getting a real workout.
This article was sent to SFS investment clients on 6 November 2008.
In his first television interview since his historic election victory, Democrat President-elect Barack Obama said stimulating the economy was a top priority – even if it meant adding to the nation’s growing deficit.
“I think what’s interesting about the time that we’re in right now is that you actually have a consensus among conservative Republican-leaning economists and liberal left-leaning economists. And the consensus is this: that we have to do whatever it takes to get this economy moving again, that we’re gonna have to spend money now to stimulate the economy,” Obama said. (more…)
You may have started to hear or may shortly hear the term ‘market capitulation’ after the end of this week’s share market falls around the world. But what is ‘market capitulation’? (more…)
Before we know it, the Australian summer barbecue season will be here – a time when many of us spend our weekends standing around a burner in someone’s backyard discussing the state of the world. When it’s male-dominated, the chit-chat over smoking steaks usually starts with the weather, before progressing to sport, television and New Year’s resolutions. Sooner or later, the question of investment crops up.
These barbecue conversations about money can be a little exasperating, particularly if you’re a long-term buy-and-hold investor with a diversified portfolio structured around the known sources of risk and return. So picture a group of people standing around a barbecue on a summer evening. The small talk exhausted, one guest who’s had a particularly good year in the markets, changes the subject to investment… “My broker told me to put a bundle on BHP and Rio this year,” he says, in between swigs on a can of expensive imported beer. “Best thing I ever did.” (more…)
As stock prices have slumped around the world over the past year, investors have been confronted with a barrage of grim news—falling home prices, rising costs for food and fuel, and worries over the fragile health of the banking system. Some have concluded that the current state of affairs bears little resemblance to the past and are questioning the wisdom of maintaining consistent exposure to equities at all.
We don’t know what the future for this business cycle looks like, but we do know that on many occasions in the past, investors were confronted with “unprecedented” events that tested their willingness to maintain a diversified approach. A few examples:
For those interested in webcasts, the link below is a short, two minute webcast that you may find of interest explaining the recent market volatility and managing your investment portfolio during this period.
These questions and answers may assist with any queries you have with regard to the investment market volatility over the last six months and negative performance on your portfolio reports. (more…)
Have you ever known a compulsive hoarder? They’re people who collect stuff that they can’t bring themselves to sell, even if they have no further use for it.
