Investing 101

The Reserve Bank of Australia (RBA) increased interest rates on Tuesday by another 50 basis points, bringing the cash rate to 1.35 per cent as it attempts to rein in soaring inflation.

As we say goodbye to a volatile financial year, most investors are glad it’s over and can’t wait to say hello to FY23. Markets will be hoping that this new financial year will bring about calmer trading conditions with fewer geopolitical tensions and no devastating pandemics.

This time last year, BWX Limited was a small-cap fundie favourite, growing a portfolio of skincare brands including Sukin, Nourished Life, Andalou Naturals, Flora & Fauna and Mineral Fusion. Today, it’s a pariah. Here are three lessons every investor can take away from the downfall of BWX.

The S&P/ASX 200 Index is considered to be one of the benchmark Australian indexes. Most will know what the index represents. However, the composition, such as sector and company weightings, may surprise even seasoned investors.

Young investors are seemingly undeterred by the equity market volatility, according to share trading app Pearler. Pearler claims that on average, eight out of ten trades by its young customers are on the buy-side, versus two trades on the sell-side.

By following a simple practice known as dollar-cost averaging to buy shares or managed funds, investors can build holdings in assets in a non-emotional and disciplined way. Moreover, it may make good sense when share markets are falling, although it doesn’t work as well when prices are rising, according to some experts.

Legendary investor Ray Dalio has warned against believing all will be well if central banks simply increase interest rates to get inflation under control.

Platform provider Praemium hosted their latest Key Market Drivers for 2022, focusing on inflation, interest rates, how to position a portfolio in these market conditions and what to tell your clients for your upcoming end-of-year client meetings.

Last month’s higher than expected inflation reading confirmed what many had long feared. Australia is not immune to the rising price of goods as a result of massive stimulus efforts during the pandemic, higher energy prices, supply disruptions and labour shortages.

Australian women are, on average, investing more of their income into sharemarkets, and overwhelming focused on using their capital to back more ‘ESG friendly’ investments. These were among the key conclusions of Pearler, an investing app that seeks to both educate and build a community around finances and investing.

The world is running out of available copper and that is causing copper prices to hit record highs. The copper price hit an all-time high of $4.9375 a tonne, which is a 125 percent rise from its March 2020 lows. It joins the list of essential commodities that have hit record highs since the pandemic began and there are several factors all contributing to its rise.

With less than a month remaining, EOFY is fast approaching and for financial advisers, it’s the most stressful time of the year. In under a month, things can turn from calm to overwhelming, at the blink of an eye.