Educational articles

Is now the time to be adding gold to your portfolio?

Gold is traditionally used as safe haven investment to hedge against a falling market. As the USD dollar market continues to fall, the popularity of gold will continue to rise. The markets have recently been experiencing some very turbulent times of late as tension grows between North Korea and the United States. These factors will encourage investors to invest in gold stocks. Exposure of gold on the Australian stock exchange can be gained through ownership of gold stocks or Gold …

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How the High Australian Dollar Will Affect Each Sector

The Australian dollar has recently surpassed US$0.80. Once of the reasons is that after the latest speech by US Federal Reserve Chair Janet Yellen, investors believed the US will not hike rates as aggressively as first thought. The market therefore decided to invest in other higher yielding countries other than US. Also, investors are starting to believe the pro-growth ideas Trump promised before he was elected may not transpire. The market initially thought the Trump presidency would deliver strong economic …

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What You Need to Know About Sector Rotation

The share price of a stock is driven by the earnings generated by a company. However, the state of the economy has a huge impact on the earnings of a company. Stocks in different sectors react differently to the various economic cycles. A profitable strategy is to purchase stocks which perform best in these different economic cycles. A strategy of sector rotation will allow investors to still profit in an economic downturn market and then also select stocks with the …

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How External Elements Can Impact Stock Prices

Just as internal factors such as management and earnings can play a part in how a stock price moves, external circumstances also play a major part. Identifying these events would be useful to investors to assist them in predicting stock price movements. Below is a beginner’s guide of external elements which can cause changes in stock prices. Interest Rates: Interest rates have a direct impact on companies as it affects their borrowing capacity. To grow the business, companies borrow funds …

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Corporate Actions Simplified

A corporate action is an event which a publicly traded company has initiated which will impact shareholders. These corporate actions usually have a strong effect on the stock price and give investors a clearer view into the company’s financial position. Due to the possible effect on the company’s share price, it is important for investors to be familiar with different corporate actions. A company may enter into a corporate action for a variety of reasons such as to increase profitability …

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