Lauren Hua

July 24, 2017

Will You Have Enough to Retire and How Shares Can Get You There

Statistics show that three in five Australians feel they do not have enough money to retire. This mortgage choice survey also identified that 54 per cent of Australians start planning for retirement when they are over 50 years old. These are alarming figures if you want to retire on a comfortable level. Below is a guideline set by the ASFA
July 19, 2017

How External Elements Can Impact Stock Prices

Just as internal factors such as management and earnings can play a part in how a stock price moves, external circumstances also play a major part. Identifying these events would be useful to investors to assist them in predicting stock price movements. Below is a beginner’s guide of external elements which can cause changes in stock prices. Interest Rates: Interest
July 7, 2017

Corporate Actions Simplified

A corporate action is an event which a publicly traded company has initiated which will impact shareholders. These corporate actions usually have a strong effect on the stock price and give investors a clearer view into the company’s financial position. Due to the possible effect on the company’s share price, it is important for investors to be familiar with different
July 5, 2017

Direct Shares Compared to Managed Funds

Managed Funds are a way to own shares without having to select the individual shares yourself. It is a way to pool all investors in a group and share the benefits together. You buy units in the fund from the fund manager and sell these units back in the future to this fund manager. This industry has exploded with many
June 29, 2017

Growing Sectors to Invest In

As mining investment continues to decline, investors are looking for industries which are expected to grow and inject extra billions into Australia’s economy. For investors taking a top down approach to investing, we have complied a list of sectors to start focusing on. The list below highlights these booming sectors for growth. These growth spots will enable Australia to remain
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 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
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 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