In a “normal” yield curve, long-term yields are higher than short-term yields. This makes sense because the longer someone borrows your money, the more you would expect them to pay you.
A 5-year term deposit will pay a higher rate than a 6-month deposit because they have your money longer and there is more risk associated with a longer investment.The inverted yield is when investors require higher rates of interest in the short term than they do for long term deposits.
Over the long-term holding cash will have a negative effect on your investments. We all know and understand the effects inflation has on cash. However, there are times when being overweight cash makes sense. Over the past twelve months the ASX 200 has returned...
Back in 2022 a financial advice company Dixon Advisory collapsed. I expect most of our clients would have been unaware of the collapse. I raise the issue now as we are once going into a more volatile time in the market. I have below included an article in regards...
Over the last 12 months the NASDAQ 100 is up 28%, the S&P 500 is up 23% compared to the ASX 200 up 8%. So why has the market not pulled back? The economy has three main pillars: the consumer, corporates, and the government. First, most consumers in the...