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.
The 2024 year has provided a 10% gain in the ASX 200, gold was up 28% and ten-year bonds were up. Is this the end of a two-year long bull market. If so, is it the start of a Goldilocks scenario? A Goldilocks environment is described as an ideal state for the economy,...
The easiest way to make money is to not lose it. This August reporting season is shaping up to be a negative earnings year. At this point we are expecting the earnings per share will be down 3.5%, noting that the 2023 year was also down 2.9% as well. Two consecutive...
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...