Educational articles

The relationship between the housing market and the economy

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The days of double digit housing growth has come to an end. Auction clearance rates for Sydney are falling below 50 percent. It is now clear that the heat in the housing market is coming off. Even if you are not a property investor, it is important to know whether this weakness will affect the overall economy. If it affects the economy, then it could potentially have an effect on your other investments. Therefore, is there a relationship between housing …

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The Effects of Donald Trump’s Tariff War

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US President Donald Trump has imposed a tariff on Chinese imported good. This has sparked speculation of a potential trade war. Firstly, a tariff is defined as a tax enforced on imports. Trump has imposed a 25 per cent tariff tax on US$34 billion Chinese goods into the US starting on July 6. Trump has also threatened additional tariffs at a rate of 10 per cent if China goes ahead with new tariffs which they have proposed to put on …

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The Differences Between a Fund Manager and a Stock Broker

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Fund Managers and Stock Brokers both strive to make profits for their clients or funds through buying and selling securities. However the strategies, time horizons and how they are paid differ significantly. Some investors prefer to write a cheque to a fund manager and leave it at that. Others prefer the hands-on engagement and transparency of a stock broker. Here we list the differences between each of the two roles. The role of a Stock Broker The job of a …

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What are the different types of shares on the ASX?

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There are various types of shares listed on the ASX, the most common is ordinary shares but there are less common ones. Here are some of the different types of shares listed on the ASX and what they each mean. Ordinary Shares: These are the most common security traded on the ASX. A share is a portion of ownership in a company. Owners of ordinary shares are entitled voting rights so they can vote on significant decisions such as the …

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The Positive and Negative Effects of a Strong Aussie Dollar

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Understanding the effects of currency movements is essential to successfully investing in the stock market. You cannot assume that a strong exchange rate means strong economic growth. Like the stock market, the exchange rate can be determined by the sentiment of buyers and sellers and not on fundamentals. That is, exchange rate movements may be driven by speculation. A strong exchange rate may affect the economy in different ways. These are the negative and positive implications of a strong Aussie …

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