Educational articles

Shares vs Property – Which produces greater returns?

Property has been a major source of wealth building over the last couple of decades.  And has been the vehicle of choice for “Mum & Dad” investors. But is this growth sustainable?  And how does Property as an investment stack up against Shares in the medium to long term? The answer to the first is while historically property prices have steadily increased, this is by no means guaranteed.  Outside Sydney and Melbourne, property prices have fallen significantly in Perth by …

Read MoreShares vs Property – Which produces greater returns?

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 make these profits. High transaction costs such as brokerage can erode the profits generated from these day traders. Long term …

Read MoreWhy Medium Term Trading is the Best Strategy

Video: How to combine Fibonacci and Elliott Wave to find a support level

In this video, we combine Fibonacci and Elliott Wave with Northern Star Resources (NST) to find a support level.     Make sure you bookmark our main blog page and come back regularly to check out the other articles and videos. You can also sign up for 8 weeks of our client research for free! Otherwise you can email Michael Gable directly at michael@fairmontequities.com Disclaimer: The information in this article is general advice only. Read our full disclaimer HERE.

Comparison of different asset classes

There are a number of asset classes out there for investors to choose from. Below is a table showing the most common. From the table, you can see the returns of shares and property are very similar with shares returning 7.1 % and property returning 7% per annum over a 10 year period. The difference of the two asset classes is the liquidity of two. Substantially higher funds are required for property as 10% or 20% deposits are needed to …

Read MoreComparison of different asset classes

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 the share market. The record low interest rates have made stock valuations look very attractive. When an analyst evaluates a …

Read MoreHow rising bond yields affect the share market