Category «Investment»

Share Market Turbulence

It’s a turbulent time for investors, with share markets jumping all over the place in response to factors which include a trade war with China and civil disobedience in Hong Kong. Volatility is nothing new, but it does have the potential to worry inexperienced investors. One morning they wake up and the markets are showing …

The Rule of 72

Recently I wrote about the Rule of 72 and pointed out that it was wonderfully simple tool which can be used in many circumstances. Just to refresh your memory it is an easy way to do compound interest calculations in your head. The best part is that you don’t have to be a mathematician to …

Term Deposits Verses Shares

The Australian share market is hitting new heights, and of course the question now is whether it is overvalued, or whether it is still a good place to invest. Let’s start with a fundamental truth – nobody in the world can consistently accurately predict the movement of markets. Remember all the doomsayers who sold out …

Power Of Compounding

I have often written about the power of compound interest. But I am still getting many queries asking what kind of investments offer compound interest. As one reader pointed out, the banks are only paying about 1.5% if you’re lucky, even though she has heard me mention returns of up to 9% per annum. The …

Pay off Home Loan or Invest?

With interest rates trending down, I am regularly being asked whether it’s better to buy shares or to focus on paying off the mortgage. The following email is typical.  “You have often written that the optimum repayment on a housing loan is $900 per month for every $100000 of mortgage. I am trying to figure out …