Australian Investment Education

The buzzword of ‘sector rotation’ has one mentioned by investors across markets. As we start to see the end of the Coronavirus pandemic. With biotechnology companies announcing new vaccines, our road to economic recovery looks much clearer, and thus our fundamental view on sectors ever-changing. Here’s why sector rotation is so important and how you can profit from these kinds of big stories: What is sector rotation? Unless you live under a rock you’ve probably seen or heard every news broadcast, radio or article talk about the buzzword of sector rotation right now. Out of one, into another. Sector rotation, says host Andrew Baxter, is something quite tricky to understand however something that is critically important. So, what is sector rotation? Well, if you imagine a big cake that has been cut into slices. Each slice represents a sector that you are invested in with the cake acting as your entire portfolio. Some examples might be the banking sector, the tech sector,...

For months on end we have heard about inflation and how the economy might suffer. Sadly, we are now starting to see some cracks form for small business owners in Australia and around the world. Join us this week as we dive into some of the indicators and what we might see start to happen: Rising Rental Costs The cost of living has skyrocketed in the last 6 months and has not shown any convincing signs of slowing. Host Andrew Baxter points out that over the last 6 months, rental costs have increased by 10% on average. For small business owners, rent is usually one of the largest costs to consider so with this particular cost increasing so rapidly, it is bound to hurt small business. In the last month in the US, a recent survey showed more than 30% of small businesses failed to pay their rent. The inability to pay rent is twofold, firstly it is clear the business itself is under strain, but it complicates things for the owner of the commercial property as they need a tenan...

With so many options available to the everyday Australian, the notion of asset allocation can be a daunting one. Is it in crypto? Property? Cash at the bank? Needless to say, your money can always be working harder when you allocate your assets correctly. A few simple questions Asset allocation can be tough – especially with so many easily accessible places to put your money at the touch of a button. The truth is before you make any decisions you have to ask yourself a few simple questions to get the ball rolling. Firstly, what’s my risk? Any pro knows that weighing up your risk before anything else is paramount. Secondly, what kind of return can I expect? Chasing returns in assets classes you don’t understand is a recipe for disaster. Of course, this will depend on how much capital you have available and how much time you actually have – sometimes our most scarce commodity. if you want to learn about how to buy back 3-5 hours a week, make sure to check out Winning the G...

  As apart of APRA’s new legislation, MyGov Superannuation funds are now under investigation for failing to meet basic benchmarks of performance.  Also, with some household funds name and shame. And here is how your Super may have affect: MySuper – The Default Super Anyone who has worked part-time as a glassy over the uni holidays or casually in a pizza shop probably has a MySuper account. The MySuper institutions are essentially the ‘default’ superannuation funds. That is elect for people if they have not nominate their own retail or industry fund. Host Andrew Baxter says that most people who are effectively oblivious to super are typically the ones who hold cash in MySuper organizations. Also, given it had been provided to them by default. This is scary in itself. However, it was the performance of these that really struck a chord with us. APRA’s Performance Results The Australian Prudential Regulatory Authority (APRA) investigated 86 of the...

  As the power of technology evolves, the ability to use A.I to automate your investment decisions is becoming ever more popular amongst traders. Here’s why having a robot hit the go button for you is so advantageous in today’s market conditions: How does A.I Fit into Trading? Artificial Intelligence (A.I) has the ability to evolve its algorithms over time, self-teach and gain advantages in areas of statistics. In the trading world, says host Andrew Baxter , more and more traders are using A.I to evolve their trading decisions based on back-tested results over a given period of time. The ability for A.I to automate specific entry and exit points as per a trading system is based purely on logic and statistics which is rarely something a human can do effectively and consistently. In any game of statistically based outcomes, computers will always have the upper hand compared to humans and so factoring this into your trading is certainly a worthy inclusion for thos...

Cryptocurrency has always been a point of contention in the investment space with crypto bulls and naysayers going toe to toe for years. Recently, major cryptocurrencies have capitulated with enormous losses. Join us in today’s podcast as we explore the reasons behind the fall: Major Problems For Investors When this episode was filmed, Bitcoin dropped as far as 73% from its highs following a colossal drop across the crypto market. Host Andrew Baxter explains his main qualm with the crypto space in that the marketing over the last few years in particular has been so effective in drawing people in who perhaps are not well-informed on the market. Adding to the issue is the fact that there is no real regulation surrounding crypto and when anything goes, it is hard to discern the truth from sales puff. The result, which we have seen now, is millions of people losing enormous sums of money because they did not understand the risks. Many of those wanting to take their money an...

  A common theme in our podcast is adapting to the current environment and selecting strategies is no different. Join us in this week’s episode as we look at 4 different types of timeframe investing and what conditions might be most suitable for each: What Works For You? Most people want to make money, but diving in and trying to you are best served to figure out what sort of strategy is best suited to you. Through decades of experience and countless clients, Host Andrew Baxter points out that figuring out what sort of investor or trader you are is a critical step in being successful. Everyone has different risk appetites and different strategies do bring different risks into play. The type of income can vary greatly across strategies – whether it be income, capital growth or passive and establishing what you are after will be one of the determining factors of which way you go. If you are time poor, you may need to consider the requirements of different strategies....