Australian Investment Education

What is Stagflation? As the name would suggest, stagflation occurs when your economy starts to stagnate. This typically will include slowing economic growth, rising inflation, and rising unemployment – just to name a few. Host Andrew Baxter says that is exactly what you don’t want for a healthy economy, rather, you want growing economic activity and inflation under control to maintain strength. For example, here in Australia, our CPI figure of 3.8% last month has already surpassed the target mandate amount set by the RBA (which is supposed to be between 2-3%) meaning the inflation cat is already out of the bag. Not to mention our slowing economic growth as per the most recent GDP figures indicating that we could be entering a period of economic stagflation. The same is true for the US economy too having similar data. The Challenge with Stagflation Once you enter a period of stagflation in an economy, it becomes very difficult to get out of. If we think back to the 197...

  We’re living in unprecedented times and keeping the economy afloat is of paramount concern for not only governments but also banks. In order for our economy to keep ticking over, we need people to buy houses and invest in businesses – which they can only do with a loan from the bank. Fewer loans means less revenue, which means more provision of bad debt. The end result – a continual and consistent cut to dividends for their shareholders. And so the vicious cycle continues..

Many of us may have started to accumulate a lot of travel points the past year as travel has been very restricted. If you are one of those you might be wondering what the best way to use them is once you actually do get to travel again. Do you first book an economy flight and then upgrade to business at the airport or do you book your business ticket right away? This and many other travel related topics are covered in our podcast episode “Travel with Kylie Luttrell” from July 25th.

  Like with any new skill you acquire in life, it’s easiest if you learn the basics right the first time around so you don’t have to back and change an already ingrained behavior that’s wrong. It’s the same with trading and investing . If you want to be actively trading, you need to be able to develop a stable approach to it. Advertisements Occasionally, some of your visitors may see an advertisement her.