Lauren Hua

January 15, 2018

What is OPEC and its Impact on the Economy

What is OPEC? OPEC stands for Organization of Petroleum Exporting Countries. It is a cartel which consist of 12 oil-producing countries. They include Iran, Iraq, Kuwait, Saudi Arabia, Venezuela, Qatar, Indonesia, Libya, The United Arab Emirates, Algeria, Nigeria, Ecuador, Gabon, Angola and Equatorial Guinea. OPEC is a permanent intergovernmental organisation which is headquartered in Vienna Austria. The organisation controls 78
January 8, 2018

The Basics of an Initial Public Offer (IPO)

IPO Definition An initial public offering (IPO) is when a private company first offers stock to the public as it becomes a publicly traded company. These companies undergo IPOs to grow their business, and they need to raise capital to do so. IPOs are also a cost-efficient way to finance growth objectives. When companies sell shares to the public, they
December 21, 2017

7 Factors the RBA Uses to Evaluate Interest Rates

The current cash rate of 1.5 per cent is the lowest we have had in Australia. The Reserve Bank of Australia (RBA) has had rates on hold at 1.5 per cent since 3 August 2016. There is always a debate in the market about whether the next move in interest rates sees the rate head higher or lower, and in
December 13, 2017

What you need to know about share buy backs

The definition of a share buy back is when the company repurchases their own shares in the open market. Once shares are sold back to the company, the total number of shares the company has on issue is reduced. This means that a larger portion of shares is held by the company compared to before the buy back. Companies do
December 7, 2017

What you need to know about takeover bids on the Australian share market

A takeover bid is an offer by an acquiring company or third party to purchase a sizeable portion of equity of another company. The price offered is usually at a premium to the market price to entice investors to participate. The takeover bid will only proceed if the acquiring firm receives a certain number of shareholders who want to participate
November 29, 2017
Technical Analysis

What is Technical Analysis?

Technical Analysis is a method of analysing supply and demand in the market by looking at price movements and volume. It can visually show how emotions are driving stock prices higher or lower. By understanding this, you will be able to identify when stock prices are running ahead of themselves or if they are being oversold. That is, technical analysis
November 15, 2017
Bitcoin Blockchain

What is Bitcoin? Demystifying Blockchain and Bitcoin

There has been a lot of news recently on blockchain and in particular bitcoin. The price of Bitcoin has had an amazing run as it was trading at US$0.39 in 2010 and it currently trading at US$7,387. These terms may be intimidating to the non-tech savvy person so in this article we will explain the concepts of blockchain and bitcoin
November 3, 2017

Stocks to buy with a lower Australian dollar

In the last two months, we have seen the Australian dollar shed nearly 5% to the US dollar. From nearly US$0.81, one Australian dollar is now fetching closer to US$0.77. As the outlook for the Australian dollar turns more negative, investors need to be aware of how this can impact their share holdings. We have previously written on this blog
October 31, 2017

The 9 things you should know before opening a SMSF

The decision to open your own Self Managed Super Fund (SMSF) may be difficult one. It is therefore important to understand the pros and cons of SMSF‘s to help you decide whether a SMSF is best for your current life circumstances.The decision to open your own Self Managed Super Fund (SMSF) may be difficult one. It is therefore important to
October 23, 2017

An Introduction to Fibonacci Retracements

Who was Fibonacci? Guglielmo Fibonacci was an Italian mathematician born in Pisa, Italy in 1175AD who introduced the Fibonacci numbers. He has been hailed as the greatest European mathematician of the middle ages. When Fibonacci was young, he travelled with his father who was a merchant through the Eastern Mediterranean and North Africa. It was during his travels that he
October 16, 2017

The relationship between bonds, interest rates, and stocks

What are bonds? When you purchase shares, you are essential purchasing a part ownership in a company. Bonds on the other hand are debt obligations. A buyer of a bond is a lender, they are lending their money to a company or government in exchange for interest payments. A buyer of a $1,000 bond with a coupon of 5 percent
October 9, 2017

Advantages and Disadvantages of ETFs

ETFs gained increased popularity in recent years and are becoming widely used by investors. This has been especially true after the GFC. Despite their popularity, they have not been around as long as managed funds. This means that investors are still unaware of how they work. ETFs are financial products that are similar to managed funds except you can buy
September 29, 2017

What you need to know about dividends

Dividends are essentially excess profits the company has decided to distribute to their shareholders. Companies are not obligated to pay out dividends as they may decide to reinvest their profits back into the business. Otherwise they may not have been profitable enough to pay out any dividends. Established companies are more likely to pay out dividends than start-ups. The reason
September 22, 2017

The Pros and Cons of Share Purchase Plans

Investors in the Australian share market at some point or another have been offered a Share Purchase Plan. Companies offer Share Purchase Plans to raise capital to fund a new acquisition. The definition of a Share Purchase Plan is an offer to existing shareholders to purchase further shares. This is usually at a discounted price. Shareholders can purchase up to
September 18, 2017

What type of stocks to buy in a high inflation environment

The world has seen unprecedented levels of money printing since the depths of the GFC. Along with record low interest rates, many investors are concerned that this can only lead to one thing – inflation. When you experience inflation, the value of investments (such as cash) may be eroded. It is therefore important for you to recognise which asset classes