Digital Finance Analytics (DFA) Blog
"Intelligent Insight"
Join me for a live discussion about the current state of the financial markets with Damien Klassen, Head of Investments at The Walk The World Funds and Nucleus Wealth.
You can ask a question live.
Go to the Walk The World Universe at https://walktheworld.com.au/
In this week’s market review we will as always begin in the US, cross to Europe and Asia, and end up with a local Australian summary – bearing in mind that our market pretty slavishly follows those in the Northern Hemisphere, which had an up day on Thursday, and a down day on Friday.
Volatility continues to rage across most asset classes, and this is now having real world consequences on our superannuation, or pension savings, which in Australia are forced by Government. As we will see the losses are mounting up.
But first, it was a bad end to a wild week with U.S. stocks dropped on Friday as worsening inflation expectations kept intact worries that the Federal Reserve’s aggressive rate hike path could trigger a recession, while investors digested the early stages of earnings season. The previous day the stronger than expected inflation data showed inflation remained stubbornly high and this shocked the market into a volatile rise. But in the last session of a volatile week, equities opened higher, then reversed course after data from the University of Michigan showed consumer sentiment improved in October but inflation expectations worsened as gasoline prices moved higher. The median expected year-ahead inflation rate rose to 5.1%, above the 4.7% seen in September. A climb in inflation expectations, a closely watched metric by the Federal Reserve, comes just a day after data showed worse-than-feared inflation pressure.
“Yesterday you had this amazing, powerful intraday rally that was completely wrong,” said Phil Orlando, chief equity market strategist at Federated Hermes. “Then you look at the Michigan numbers this morning that’s consistent with what we’re seeing in the economy, and the stock market now is down to reflect that number. That’s correct.”
The latest edition of our finance and property news digest with a distinctively Australian flavour.
Go to the Walk The World Universe at https://walktheworld.com.au/
This is an edited version of a live discussion about the current state of the markets with Head of Investments for Walk The World Funds and Nucleus Wealth, Damien Klassen.
You can register for the “Meet the Managers Forum” scheduled in Melbourne on Wednesday 19/10/22 6:30-8pm: https://www.eventbrite.com/e/meet-the-managers-tickets-410294761677?aff=wtw .
We discussed this strategic session during the show, as well as the current macro issues and answered questions.
Go to the Walk The World Universe at https://walktheworld.com.au/
The next part of the John Adams quest in which we discuss how people are being ripped off by spurious investment schemes, and how the regulators are consistently asleep at the wheel. This is a problem not just here but in other western economies too. Investors beware!
Go to the Walk The World Universe at https://walktheworld.com.au/
Investors in Australia are exposed to considerable risks thanks to the ineffective regulatory environment which has been designed to look after the major financial players as opposed to investors. And remember thanks to the forced superannuation savings scheme, we are forced to comply.
So Robbie Barwick from the Citizens Party and I discuss what needs to be done to make this an election issue.
The fight to clean out financial corruption in Australia – Citizens Party – Live Stream – 31 Mar 22 https://youtu.be/Hnxya-NjHIY
Mobilise! Call MPs in Canberra – demand Labor and Liberals commit to full compensation for Sterling victims
All Australians who support the need to clean up financial corruption, which must include holding ASIC to account for its failures as a regulator, are urged to join in making phone calls this week to the Canberra offices of the Prime Minister, Opposition Leader, Finance Minister, Shadow Finance Minister, and Shadow Minister for Financial Services.
Demand they commit to paying full compensation to Sterling First-Silverlink victims through an Act of Grace payment by the Finance Department – the total cost is $18 million plus interest and expenses.
Demand the Labor Party politicians make this an election pledge.
Tell the politicians (or tell their staff to pass on the message):
• Full compensation is absolutely necessary, for the survival of the elderly and frail victims, who all face eviction and homelessness; and for justice for the victims.
• ASIC failed these victims, who only thought they had paid their rent in advance for the rest of their lives, and didn’t know they were in a managed investment scheme – BUT ASIC DID!
• It is the government’s responsibility that ASIC is a weak and ineffective regulator, due to its “buyer beware” ideology (if you get ripped off it’s your own fault), therefore the government is responsible for ASIC’s failures and for compensating its victims.
• The so-called Compensation Scheme of Last Resort (CSLR) does not yet exist, and under current plans it does not cover the Sterling victims; even if Labor expands the scheme, it is adjudicated by the Australian Financial Complaints Authority (AFCA), which is another agency that is rigged against financial victims and in favour of the perpetrators.
• As the government has the mechanism of an Act of Grace payment to compensate people, it should man up and do so immediately, and then the Sterling case must become the catalyst to overhaul ASIC and make it a proper regulator with teeth, feared by financial predators.
The politicians to call immediately:
Prime Minister Scott Morrison: (02) 6277 7700
Finance Minister Simon Birmingham (02) 6277 7400
Opposition Leader Anthony Albanese (02) 6277 4022
Shadow Finance Minister
Senator Katy Gallagher (02) 6277 3456
Shadow Minister for Financial Services
Stephen Jones (02) 6277 4661
Go to the Walk The World Universe at https://walktheworld.com.au/
New rules are coming in in July, which turns the focus on income generation from superannuation savings, and the access to reverse mortgages in being expanded. Both of which are examples of the Government pushing people to consume their capital in retirement, rather than it being seen as assets for their estate. The implications are profound, and not well understood.
Yet this is a big sector of the market, and fintechs are knocking on the door, for good or ill.
Go to the Walk The World Universe at https://walktheworld.com.au/
I caught up with Paul Feeney, the Founder of Otivo a financial advice platform “Financial freedom for all”.
At its heart is an easy-to-use app that takes the mystery out of money.
Go to the Walk The World Universe at https://walktheworld.com.au/
I caught up with Financial Planner Teagan Curtin from PRP Advisers to discuss the art and science of financial planning. We discussed the benefits of developing a financial plan, some of the important questions to consider, and how the current market context might influence a plan.
Go to the Walk The World Universe at https://walktheworld.com.au/
At least 200,000 Australians have lost money thanks to inadequate regulation by APRA, worth at least $40 billion dollars. I am joined by Robbie Barwick from the CItizens Party as we explore this unfortunate but engineered situation, which has enabled the Government to look away, and ASIC claim it is not their problem , when it is clearly is.
As a result, it is likely more people will experience further losses, not because of adverse market movements, but because of poor or non-existent regulation. This has to change, and the current inquiry is a mechanism to achieve this….
Background Briefing on Nicholas Moore and Macquarie Bank:
ABC 730 Should ASIC have acted sooner to protect victims of collapsed housing scheme?
https://www.abc.net.au/7.30/should-asic-have-acted-sooner-to-protect-victims/13655976
CSLR inquiry:
https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Economics/CompSchemeLastResort
Citizens Party release:
Call to all financial victims: join the fight to make the bankers and their protectors pay!
Interview with Peter Johnston:
CITIZENS INSIGHT – Nobody is safe in the financial system unless the Government rights this wrong!
Regional Banking Taskforce
https://treasury.gov.au/consultation/c2021-222961
Go to the Walk The World Universe at https://walktheworld.com.au/
This is a discussion featuring no less than three younger investors, as we explore inter-generational financial matters, learning about finance and importantly, lessons they have learnt now, which would have been great to know earlier in life.
I wanted to make this show because I often get asked to step through some of the basics of finance for less experienced folks , and this proved to be a powerful way to start that discussion. There will be some follow-up episodes in this series, covering topics such as asset allocation, and trading. Caveat Emptor! Note: this is NOT financial or property advice!!
Go to the Walk The World Universe at https://walktheworld.com.au/
The Walk The World Funds are powered by Nucleus Wealth. https://nucleuswealth.com/