Life insurance and income protection insurance for the Mining Industry is often thought of as too risky and difficult to obtain the required cover for the various occupations within the industry. Australian Life insurance providers may have declined cover for the mining industry in the past, despite the fact that in 1994, a study into…
The global and Australian sharemarkets have rallied around 40% from their March lows in anticipation of an earnings recovery. Matthew Sherwood, Perpetual’s Head of Investments Market Research evaluates the recovery and finds that although economic growth should improve in H2 2009, markets appear to be experiencing valuation fatigue and will need analysts to upgrade FY2010…
This note looks at the implications of an upturn in the interest rate cycle for investors. The key points are as follows: – With the economic emergency which followed the global financial crisis now fading into history, interest rates will soon start to rise, with Australia likely to lead the way. – While rising rates…
The following notes takes a look behind the Reserve Bank of Australia’s (RBA’s) target cash rate, its impact on commercial lending rates, the $A, and what interest rate changes mean for the economy. Read More
This note looks at the outlook for the Australian economy. The key points are as follows: – Australia has so far had a very mild economic downturn compared to other countries and its own history. – However, its likely that the economy went backwards in the June quarter and that this will continue into the…
This note looks as the outlook for listed property securities (or real estate investment trusts – REITs). The key points are as follows: – Given the damage done to investor confidence by their big slump over the last 18 months, listed property securities are unlikely to soon return to their once exalted status. – However,…
Given the complexity of investment markets and investing along with the massive amount of information available to investors many people rely on logic based on ‘common sense’ or simple ‘rules of thumb’ in making investment decisions. However, while some such rules of thumb are reasonable, in many cases they are not and can result in…
This note looks at the timing of the economic recovery globally and in Australia, how strong it might be and the implications for shares. The key points are as follows: – The improvement in economic indicators is consistent with an economic recovery by year-end. – While tight credit markets and ongoing deleveraging will most likely…
This note looks at a summary of the 2009 Federal Budget Update. The key points are as follows: – Taxation. – Superannuation. – First Home Owners. – Government Support. – Private Health Insurance. Read More
This note looks at the signs of recovery in China and whether or not it is sustainable. The key points are as follows: – China’s economy is recovery on the back of a combination of fiscal and monetary stimulus, and signs the export slump is easing. It is on track for 8% gross domestic product…