Australia is hurtling towards murky economic waters, and the RBA is mulling a controversial policy. Here's what it means for you.
For those who are sick of 'cowboy' investments, this is the no-frill, low-cost trend taking the world by storm.
Let’s get right to the heart of why we care about the global economy, and how the health of the global economy affects your hip pocket.
Ah the US 10-year Treasury bond – an eye-glazing financial product if there ever was one. The 10-year Treasury bond is a debt security, issued by the US government. Importantly though, it’s also a bit of a bell-whether for where interest rates are heading – globally.
You’ve got $5,000. You just want to start saving so, 10 years from now, you can think of buying a home. Or maybe, one day, 50 years from now, you might be able to retire.
When was the last time you got a pay rise? Or more to the point, when was the last time you read a story in the media about “stagnant wages”?
I’m going to talk about bitcoin and cryptocurrencies. Now if my research is correct, about a quarter of you are rolling your eyes at me right now, and the rest of you are sitting closer to your computer screens. Here’s the thing though – I’m personally not a fan. Never have been. Likely never will be.
It’s as basic as it gets, but if you look at charts of some of the world’s major stock indices… well, it’s pretty scary. What we know about financial markets is that they go up and down. Since the financial crisis, interest rates around the world, including Australia have been super low.
Billionaire investor Warren Buffett famously advised people to invest only in what they know, or an area they’re familiar with. You need to be well-versed in the inner workings of a business before you throw your hard-earned money behind it to help it grow. What I’ve seen of the healthcare system over a lifetime, and my recent trip to hospital, along with societal demographic changes, leaves me in no doubt that that healthcare system is worth a look as an investment.
Of course he said he would like to see higher wages, but the reality is there’s not much more the Reserve Bank can do to solve the problem. Basically, at this point in the economic cycle, with close to ‘full employment’, there should be some upwards pressure on wages. It’s the unemployment rate at which the inflation rate remains subdued.