Parliamentary Inquiry told ALP proposed franking tax credit rebate policy has many unintended consequences

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While the intent of the Labor Party’s (ALP) proposed franking tax credit rebate policy is admirable, the execution is far from it, according to a presenter at this afternoon’s Parliamentary Inquiry by the Senate Standing Committee in Sydney. They were told it is regressive and its discriminatory, “like cracking a nut with a sledgehammer with […]

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Handicapping the risks for 2019

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What could go wrong for investors this year? In late November we produced our 2019 Outlook for the global economy and capital markets. In December, we highlighted five trends that would likely reverse in the coming year (growth, rates, monetary policy, the US dollar, and rising volatility). This month we itemise seven risks we see on the […]

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Traditional sources of diversification failed to mitigate losses as portfolio performance suffered

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Multi-asset funds failed to protect investors from the impact of volatile equity markets in 2018, according to the Natixis Investment Managers Global Portfolio Barometer. Adviser portfolios delivered negative returns across all regions, driven by falls in equity markets. But the analysis of investor portfolios in seven markets, conducted by the Natixis Portfolio Research & Consulting […]

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A strong year for dividends globally

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Despite global share markets falling heavily in the last quarter, 2018 was a strong year for dividends across developed markets, with $A1.8 trillion paid out to shareholders, a $200+ billion, or 12.6%, increase[1] from the year before according to research by Plato Investment Management. “More than half, some 59%, of companies world-wide increased their dividends per […]

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Eaton Vance: What’s next for Brexit?

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Brexit, the expected withdrawal of the United Kingdom from the European Union, is one of the biggest uncertainties that global investors are wrestling with today. “The exact path to Brexit is uncertain and remains a top worry for global investors,” says Christopher Dyer, Director of Global Equity at Eaton Vance. “With so many moving parts […]

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CommSec Research: Aussies are spending, but cautiously

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Economic trends & issues The Australian Bureau of Statistics (ABS) yesterday released retail spending data for the December quarter. CommSec obtained detailed spending data from the ABS in nominal and real (inflation-adjusted) terms. The data provides insights on how spending has been changing across the economy. Spending rose by just 0.1 per cent in real […]

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CommSec Research: Aussies opt to stay and renovate

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Weekly Petrol Prices; Building Approvals; Job ads Building approvals: Council approvals to build new homes fell by 8.4 per cent in December to be down by 22.5 per cent over the year. Approvals stand at 5½-year lows. But Tasmanian dwelling approvals are at 8-year highs. Renovations: The trend value of alterations and additions approvals rose for the […]

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Market review – February 2019

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Australian government bond yields continued to rally over January as weaker domestic economic readings led markets to become more confident that the next move in the cash rate would be down. Longer-dated yields benefitted from flight-to-quality flows when concerns over trade, Brexit and the US government shutdown were most elevated. Risk appetite recovered, with equity […]

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Inflation: No room for complacency

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Consumer price index  Inflation: The Consumer Price Index – the main measure of inflation in Australia – rose by 0.5 per cent in the December quarter, above expectations. In seasonally adjusted terms the CPI rose by 0.4 per cent. The annual rate of headline inflation eased from 1.9 per cent to 1.8 per cent. The Aussie […]

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CPD: Trump, Tech and Trade

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China 2025 is perceived as an existential threat to US commercial and technological leadership. This raises the risk that the Trump administration could conclude that its best response is to decouple much of the US supply chain from China. As discussed in this paper from Epoch Investment Partners, penned by CEO and co-CIO Bill Priest […]

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