Lauren Hua
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 stock market goes down. The main reason for this is that companies will have less capacity to borrow more from …
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 make these profits. High transaction costs such as brokerage can erode the profits generated from these day traders. Long term …
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 the share market. The record low interest rates have made stock valuations look very attractive. When an analyst evaluates a …
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 the dividend imputation system which allows shareholders to account for the tax which has already been paid by the company. …
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 a company’s size which is calculated by the current share price of a company multiplied by the number of shares …