Educational articles

June 16, 2017

Strategies to Use in a Bear Market

Share markets have done very well in recent months. Are we reaching a top? Whatever your view, share markets will at some stage start to go down again. Most investors know the pain of seeing stock prices trend downward, whether the dotcom bust, the GFC, or any number of corrections that regularly occur each year. In hindsight, these same investors
June 7, 2017

Tax Time: What You Need to Know About Capital Gains Tax and Shares

With the end of financial year around the corner, it is worthwhile reviewing how your gains or losses are treated if you decide to sell your shares before 30 June. Most investors are aware of what to do with gains on shares that were held for only a brief period of time, but investors who have held shares for many
May 31, 2017

How a Housing Collapse Will Affect the Stock Market

There has been talk of a housing bubble for many years now. With households highly leveraged, a significant increase in interest rates or high unemployment may have dire consequences on borrowers’ ability to repay their mortgage. But if there was a housing crash, how would this affect our stock market? Firstly, we are not predicting a crash in house prices.
May 24, 2017

The Effect of Interest Rates on the Stock Market

With the Fed hiking up interest rates in the US, it is only a matter of time before interest rate rises take place in Australia. So what are the consequences of interest rate hikes and the stock market? In general, when interest rates are cut then it causes the market to go up. When the interest rates go up, the
May 19, 2017

Shares vs Property – Which produces greater returns?

Property has been a major source of wealth building over the last couple of decades.  And has been the vehicle of choice for “Mum & Dad” investors. But is this growth sustainable?  And how does Property as an investment stack up against Shares in the medium to long term? The answer to the first is while historically property prices have
May 12, 2017

Why Medium Term Trading is the Best Strategy

The definition of a day trader is someone who buys and sells stocks within the same trading day. Research show that 4 out of 5 people lose money day trading and only 1 in 100 do it well enough to live off the proceeds.  A day trader must live off their profits as well as risk their own capital to
March 8, 2017

Video: How to combine Fibonacci and Elliott Wave to find a support level

In this video, we combine Fibonacci and Elliott Wave with Northern Star Resources (NST) to find a support level.     Make sure you bookmark our main blog page and come back regularly to check out the other articles and videos. You can also sign up for 8 weeks of our client research for free! Otherwise you can email Michael Gable directly at michael@fairmontequities.com Disclaimer:
January 13, 2017

Comparison of different asset classes

There are a number of asset classes out there for investors to choose from. Below is a table showing the most common. From the table, you can see the returns of shares and property are very similar with shares returning 7.1 % and property returning 7% per annum over a 10 year period. The difference of the two asset classes
December 6, 2016

How rising bond yields affect the share market

Donald Trump’s plans for tax cuts and infrastructure spending has created a massive sell off in bonds. This has caused bond yields to rise (bond yield rise when bond prices drop). When bond yields start to rise it means the market is factoring a rise in interest rates. Previously the record low interest rates have persuaded investors to invest in
October 18, 2016

An easy guide to franking credits

We have all heard about dividend imputation and franking credits. However, my experience is that if you ask an investor to calculate the benefit after tax, most will struggle to do it correctly. Here is a quick and easy guide to dividend imputation that you should bookmark for future reference. What is dividend imputation? To avoid double taxation, the government introduced
October 12, 2016

The Benefits of Diversification

When an investor is thinking of becoming a client, the first thing we do is conduct a free portfolio review. Often the portfolio contains either not enough stocks, or too many. This means that the first tip I can give someone is to ensure you have some proper diversification. The stock market can be rather volatile, so one way to
October 9, 2016

A beginner’s guide to financial ratios

Author: Michael Gable You may already be aware that our unique philosophy to investing is to combine both fundamental and technical and technical analysis. Here we take a break from presenting a specific stock idea and run through some basic financial ratios that can help a beginner investor identify a quality company: Market Capitalization – This is a measure of