Latest News from Newealth

Announcement: ‘AAAA’ Client Status

• Posted by Dejan Pekic BCom DipFP CFP GAICD

Done.

It took 3 decades but today, Wednesday 13th November 2024 it is with both great pride and pleasure that we announce that the first of our clients has achieved ‘AAAA‘ Client Status.

At Newealth a client is moved to ‘AAAA‘ Client Status once their portfolio achieves a minimum of AUD$10,000,000 in Net Profit after fees and before tax.

We congratulate our client and thank them deeply for allowing us to help them become the first ever Newealth client to achieve in excess of AUD$10,000,000 in Net Profit after fees and before tax.

This is not the end of the journey, today we only finished a part of this epic adventure which is to help our clients accelerate their wealth.

Trump Triumphs

• Posted by Dejan Pekic BCom DipFP CFP GAICD

Donald Trump is back as President.

Key policies include reducing US corporate tax rate from 20% to 15%, reducing immigration (includes deporting 20 million undocumented people), slashing energy regulations, slashing financial regulations and increasing tariffs on trade.

If tariffs are increased 10% to 20% on all imported goods and 50% to 60% on goods imported from China this would take the average US tariff rate on imports to around 17% which has not been seen since the 1930’s.

Click for chart.

Be prepared for a shake-up, change and upheaval in financial markets.

As Benjamin Graham taught us, all we need to do is remain invested according to our appetite for volatility and when the next 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.

Markets Expectations for 2025

• Posted by Dejan Pekic BCom DipFP CFP GAICD

This Wednesday our time, we expect the November 4th US Presidential Election to be decided.

Will it be good news or bad news?

Unclear.

However, Mr Market is expecting interest rates to continue to be cut for most of the developed World in 2025.

Click for table.

Interest rates cuts are good news for almost all assets because they increase the present discounted value of future income but this can also lead to asset price bubbles if the interest rate cuts are too big.

Understand that investing can be confusing but as Benjamin Graham taught, all we need to do is remain invested according to our appetite for volatility and when the next 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.

Megatrends: The electrification of everything

• Posted by Dejan Pekic BCom DipFP CFP GAICD

The World is planning to transition to Net Zero by 2050 which means trillions of dollars will be spent on renewable energy, storage, electrification and carbon capture.

According to the International Energy Agency (IEA), 2024… “Electricity consumption from data centres, artificial intelligence (AI) and the cryptocurrency sector could double by 2026. This demand is roughly equivalent to the electricity consumption of Japan.”

While McKinsey & Company, 2024 expects… “By 2030, Data Centers will account for 8% of all US Power Demand.”

We have attached IEA forecast of global growth in electrification and the expected quadrupling in power demand in the United States alone by 2040.

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.

Australian Entrepreneurs: Young Rich

• Posted by Dejan Pekic BCom DipFP CFP GAICD

Above are our Top 10 under 40 year old self-made entrepreneurs.

Just goes to prove that this country of ours is still a land of opportunity if you have the determination to succeed.

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.

Diversification

• Posted by Dejan Pekic BCom DipFP CFP GAICD

Diversification is not defined as having every dollar invested in one single asset.

Can still remember Ted Turner orchestrating the Time Warner AOL merger at the height of the technology boom (official filed 11th February 2000) with the result being a personal fortune of over US$9 billion.

The subsequent crash and collapse of the Time Warner AOL share price crushed his personal fortune down to US$360 million.

Later he was asked in an interview how he could you lose so much money and his reply was simple ‘…I did not diversify‘.

Ted Turner was lucky, he was still left a millionaire after the collapse although he had been a billionaire but the moral must be that you should always seek to diversify both across different asset classes and within an asset class.

The attached table lists the top three performing stock markets in the World over the past 30 years.

Guess how many times the Unites States came first?

Click for table.

Our business is based on referrals, so if you have family, friends or colleagues that want advice please ask them to contact us.

AI Agents

• Posted by Dejan Pekic BCom DipFP CFP GAICD

When referring to AI Agents we are not talking about spies.

Instead, we are talking about computer software (specifically, artificially intelligent bots) which will automate tasks, become predictive and work with other bots to enhance our user experience and drive business productivity.

Jensen Huang, CEO NVIDIA shares his vision for AI Agents and how these bots will become new tools to enhance business capabilities.

Click to read and/or watch.

Creating these AI Agents brings back memories of having our first child, you are never really prepared, then everything changes and your job is to just hold on and work out what is needed as you go.

Our business is based on referrals, so if you have family, friends or colleagues that want advice please ask them to contact us.