Lauren Hua

Reflation: What is it, and why you need to understand it

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Reflation is an important term for investors to know. It is important to understand where we are in the business cycle as it can affect the performance of your share portfolio. In this article, we discuss what reflation is, how it is implemented, and the sectors which profit from these economic conditions. What is reflation? Reflation is a deliberate attempt to raise the general level of prices to achieve an economy at full employment and growth. In Australia, the Reserve …

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What are the characteristics of a high growth stock?

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The term “high growth” is a description that has used ubiquitously in the financial media, but was does the term mean and what are the characteristics of high growth stocks? Definition A definition of a growth stock is one where investors see higher growth potential compared to the average market. As investors believe the company will grow significantly in the future, they are willing to pay an expensive price for the stock, which causes the share price to further accelerate. …

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What are the differences between listed and unlisted managed funds?

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Managed funds have recently become very popular due to the automatic diversification they offer. Investors who do not have much experience in investing will also find these products useful as all the investment decision making has been done for them. Managed funds can be listed or unlisted. In this article we discuss the differences between the two. Listed Funds: These are funds which are listed on the Australian stock exchange and traded like shares. The price of listed funds changes …

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5 Ways the Stock Market Affects the Economy

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We have previously written on the effects of the housing market and the economy but in this article, we explore the affects of a stock market on the economy. Even if individuals do not have share portfolios, a crash in the stock market may still affect them. 1.Lower stock prices means less earnings for businesses Businesses will feel the impact of lowering stock market values. When individual‘s net wealth values decrease due to the lowering of value of the stock …

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6 Important Financial Ratios for Investors

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There are a number of financial ratios that investors need to be familiar with in order to assess the financial strength of a company. Understanding these different ratios can help you become a better investor in the share market. These are the top 6 financial ratios that share investors need to be familiar with 1. Price to Earnings Ratio The P/E ratio represents how much stock investors are willing to pay for each dollar of earnings. The formula is: Current …

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