Weekly economic and market update – week ending 1 July, 2022

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Investment markets and key developments Recession fears dominated over the last week pushing US, European and Japanese shares down, although Chinese shares (having already had a 35% bear market) rose. Australian shares were little changed with gains in utilities, energy and industrials offset by falls in property, IT and telco shares. Recession fears also pushed

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Australia’s Achilles’ heel – high household debt and rising interest rates…it’s not as bad as it looks, but it’s still an issue

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Key points Australian household debt has risen dramatically since the 1980s and is high compared to other countries. The rise is not as bad as it looks because it’s been matched by rising wealth and debt servicing problems are low. However, this will likely change as interest rates rise further & if dwelling prices fall

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Weekly economic and market update – week ending 24 June, 2022

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Investment markets and key developments Share markets managed to stabilise and, in most major markets, bounce from oversold levels over the last week as there were no new hawkish surprises from central banks and weak economic data saw bond yields fall taking pressure of share market valuations despite increasing worries about recession. For the week

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The plunge in shares and flow on to super – key things for investors to keep in mind during times of investment market turmoil

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Key points Share markets have fallen sharply in recent weeks continuing the plunge that started early this year due to worries about inflation, monetary tightening, recession & geopolitical issues including the invasion of Ukraine. It’s still too early to say markets have bottomed. This will weigh on super returns for this financial year. Key things

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Weekly economic and market update – week ending 17 June, 2022

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Investment markets and key developments Share markets tumbled again over the last week as markets moved to anticipate even more aggressive rate hikes from central banks after the release of higher than expected US inflation data. For the week (so far) global shares are down around 6% and Australian shares are down by around 7%.

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A tonic for turbulent times: Dr Oliver’s Nine Tips for investing

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Dr Shane Oliver, AMP’s long-standing Chief Economist and member of the AMP Investments team, has witnessed numerous economic cycles and market events in his more than 35 years as a leading economist. His Nine Tips for investing are particularly relevant amid the current market turbulence. 1. Compounding Compound interest is magical! The value of $1

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The RBA hikes rates again with more to go – but falling confidence and home prices will limit RBA tightening

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Key points The RBA has hiked the cash rate again – by 0.5% taking it to 0.85% and continues to signal more rate hikes ahead. We expect the cash rate to rise to 1.5-2% by year-end and to peak at 2-2.5% by mid next year. Greater sensitivity to higher interest rates will cap how much

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Weekly economic and market update – week ending 3 June, 2022

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Investment markets and key developments Share markets mostly rose again in the past week as the rebound from oversold levels continued partly on hopes that some cooling in demand will take pressure of inflation and central banks, and as China started to reopen. European shares were little changed but US, Japanese, Chinese and Australian shares

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Weekly economic and market update – week ending 27 May, 2022

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Investment markets and key developments Share markets saw a bit of relief in the past week – bouncing of oversold lows helped by less hawkish than feared comments from the ECB and Fed, a further pullback in US bond yields, improved outlooks from some US retailers and airlines and M&A activity. This left the US

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Australia’s new Government – what does it mean for investors?

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Key points The absence of significant macro policy differences between the new Labor Government and the Coalition suggests minimal impact on the share market & the $A. There could be some short-term uncertainty if Labor has to rely on minority parties or independents, but its looking like Labor will be able to govern in its

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