The wold’s biggest interest rate decision in a long time, the US interest rate decision for September, came and went and without much action. If you’re wondering why it was the biggest interest rate decision, it’s because the world’s largest economy (or second largest, depending on who you talk to), and interest rates had been nailed down at 0.25% for 54 consecutive months. And after 54 consecutive months the US economy seemed to be improving – maybe even improving enough for a rate rise. Another reason it was the biggest interest rate decision for some time was because of expectation. It…

We are currently witnessing increased volatility in financial markets. Market declines spook people and many think the worst. Financial media quickly switches into alert mode by showing special segments and pumping out more reports, while anyone pushing a newsletter proclaiming the end is near jumps in to proclaim “this is the moment!”

With much of Australia shivering through its coldest winter in decades, a freeze is also being felt by thousands of everyday investors whose funds have been locked up in a troubled mortgage fund. Angas Securities has frozen redemptions from its $200million mortgage debenture fund until at least December 2016 due to serious financial troubles. The story is a familiar one. The company raised funds from the public and lent it to borrowers, who were typically property developers. The funds raised came from mainly retired people who were chasing higher income after interest rates fell significantly. As it turned out, more…

Economic Overview The global economic backdrop remained mixed in the June quarter. Continued recovery in the US and modest gains in Europe and Japan were offset by a continuing slowdown in China, weak commodity prices and Greece’s recurring debt woes. Globally, monetary policy remains highly accommodative. However, the US Federal reserve has declared its intention to raise interest rates sometime this year if key indicators continue to strengthen. Across the Atlantic, despite an easing of deflation fears and small signs of an economic recovery, the European Central Bank kept rates at record lows and continued its quantitative easing program. In…

Greece and its debt obligations (and default) are back on the agenda in a big way and that means a whole host of experts are filling media air time and column space with what they think will happen next. They don’t know, but they’ll happily tell you they do. If you’re in the market for a doom and disaster opinion there is no shortage of them. There will be volatility, but predictions of a financial apocalypse where Greece sets off a chain reaction that collapses other countries and ends with savings being confiscated are ridiculous. The safest option, we’ve always…