Most of us would know the difference between investing and gambling and if we had to mention a single commonality between the two, it would be that both contain an element of risk. But that’s where the similarities end. The recent headlines on the high-stakes action of GameStop, an American chain of video games stores, […]
To hedge or not to hedge?
When you invest globally you are not only exposed to the risk of the investment, you are also exposed to exchange rate risk. That is, the risk that the currency you purchase the asset in (e.g. British Pounds) will rise or fall against the Australian Dollar. Such movements in exchange rates can impact your investment […]
Understanding Investment Bonds
Investment bonds (sometimes call insurance bonds) were once a popular investment vehicle for high income earners. However, in the mid 1980’s along came superannuation, which soon became the investment of choice for many. Investment bonds are now undergoing a resurgence of sorts. And this is thanks to the restrictions on the amount that can be […]
Investing for Children
I am often asked, “What is the best way to save for my daughter’s university degree?” or “We want to help our son with a deposit on his first home, should we invest in his name or ours?”. Investing for children is fairly simple yet the best way to set up such investments is not […]
Do news headlines impact share markets?
Do share markets care about news headlines? In April, the US share market posted its best month in over 30 years. How can this be? In the five weeks from 20 February through 19 March, 1.1 million US citizens filed jobless claims. During this time, the US share market fell 29%. In the following five […]