31 May 2024
Friday Tidbit
- Posted by Dejan Pekic BCom DipFP CFP GAICD
Today the AFR (Australian Financial Review) published the Rich List 2024 and Gina Rinehart takes first place with $40.61 billion.
For business it is all about growing EPS (earnings per share) which is a measure of a company’s profitability and calculated by dividing a company’s net income by its number of shares outstanding.
And as investors we want business EPS to grow.
Attached is Mr Markets consensus expectation for Australian EPS growth over the next 12 months.
Click for chart.
As Benjamin Graham taught, there is nothing that you or I can ever do about economic cycles which is why remaining invested according to your appetite for volatility is key and when panic takes hold, react by buying more quality assets at discounted prices.
Our business is based on referrals, so if you have family, friends or colleagues that want advice please ask them to contact us.
15 May 2024
Australian Federal Budget 2024
- Posted by Dejan Pekic BCom DipFP CFP GAICD
The Federal Treasurer Jim Chalmers has handed down his third Budget with no significant changes to what had already previously been announced.
It is all about increased spending and that will cause the budget falling back into a deficit. However the Federal Treasure is telling us that all this increased spending will not fuel inflation.
This is nonsense, without increase productivity, increased spending is fuel for inflation and high inflation can only mean increased interest rates.
It is important to remember that these Budget announcements are currently proposals and will still need to be legislated.
Click to read.
Our business is based on referrals, so if you have family, friends or colleagues that want advice please ask them to contact us.
10 May 2024
Up to a 50% guaranteed return
- Posted by Dejan Pekic BCom DipFP CFP GAICD
The Federal Government Co-contribution was introduced from 1 July 2003 as an initiative to encourage income earners to save for their retirement within superannuation.
If you make a contribution of up to $1,000 into your superannuation account before 30 June 2024, the Federal Government will add an additional sum provided that you are earning less than $58,445 this financial year.
The table below shows you how much the Federal Government will contribute for various amounts.
|
If your total
annual
income is:
|
…and you make
personal contributions of:
|
…then the maximum Government
co-contribution is:
|
|
$43,445 or less
|
$1,000
|
$500
|
|
$46,445
|
$800
|
$400
|
|
$49,445
|
$600
|
$300
|
|
$52,445
|
$400
|
$200
|
|
$55,445
|
$200
|
$100
|
|
$58,445 or more
|
$0
|
$0
|
WARNING, this does not constitute Personal Advice. To discuss if this is an appropriate strategy for your given circumstances, please do not hesitate to contact us directly.
Yes, there are always additional eligibility conditions and if you have family, friends or colleagues that want financial advice please ask them to contact us and we will work out how best to help.
Our business is based on referrals, so if you have family, friends or colleagues that want advice please ask them to contact us.
3 May 2024
Friday Tidbit
- Posted by Dejan Pekic BCom DipFP CFP GAICD
Much has been said about the importance of China to Australia but how long can the China growth story continue for our resource sector?
All industrialising nations eventually reach peak steel intensity which is when a nations steel consumption per capita begins to fall because the majority of the infrastructure has been built.
For the United States it was reached in the 1970’s when steel consumption averaged 637kg per capita.
For Australia, China appears to have reached peak steel intensity in the last few years as fixed asset investment (FAI) in property materially reduces. This will negatively impact commodity prices, our terms of trade and the Australian dollar.
Click for two speed economy in China.
It is not all bad news.
The Emerging Markets (which include Brazil, Russia, China, India, Mexico, South Africa, Indonesia, Philippines, Poland, South Korea, Thailand, Malaysia, Chile, Colombia, Argentina, Czech Republic, Hungry, Morocco, Peru, Taiwan, Vietnam and others) are at 35 year lows against the United States dollar which signals buying opportunities in emerging markets.
Click for Emerging Markets low.
What does all this mean?
Be smart, follow Benjamin Graham’s value investing principles, remain invested according to your appetite for volatility and let the professionals help you take advantage of these opportunities.
Our business is based on referrals, so if you have family, friends or colleagues that want advice please ask them to contact us.
