We have had low interest rates in Australia for a few years now and the RBA has just announced another cut of 0.25%. This makes the official cash rate the lowest in history at 1.25%. Rates are lowered when regulators see a need for the economy to be stimulated. Lower interest rates are good for the share markets as companies can expand by cheaper borrowing. However, it can also lead to some negative repercussions. These are the 6 dangers of …
People unfamiliar with share investing often compare it to gambling at the casino or the track. At first glance, it can seem like the share market is like a casino where you place bets on a stock and hope that it does go up. However in this article we outline reasons why there is a distinct differences between the two. There is a higher probability of creating wealth by saving a little each month and putting it in the stock …
ETF’s have become very fashionable recently and their popularity has grown substantially in the last few years. ETF’s can make investing easy for the beginner as they take out the guess work in selecting stocks. They can also be a source of instant diversification for the investor who does not have the funds to buy a large portfolio of different shares. However, convenience always comes at a cost. For some investors who don’t need the convenience of an ETF, they …
The moving average convergence divergence (MACD) indicator is a popular tool used by traders to help with their entry and exit points. In certain circumstances, it can be extremely useful and reliable. You may have noticed it on many of the charts used by us here at Fairmont Equities. Here is an explanation on what it is and how to use it. How to Calculate the MACD. The MACD is a momentum-based trading indicator. This indicator can show changes in …
With the market near record highs, do we sell in May and go away? When we look at the evidence, perhaps its best to be a contrarian and do the opposite. (The following is an extract from our client research report The Dynamic Investor, first published on Tuesday 7 May. If you want to be the first to know our thoughts, GO HERE and sign up to an 8-week FREE TRIAL.) Do we sell in May? We’ve had a volatile …