Andrew Baxter

  Australia’s economic future is increasingly uncertain, raising red flags for investors and the general public alike. Global trade headwinds, shifting domestic governance, and mounting challenges in productivity and wage growth are creating a sense of economic unease. The central question many are now asking is:   Will Australia achieve a soft landing, or are we on the brink of a recession? Government Policy: Stability with Caution The recent federal election delivered a majority government, providing the leadership with a strong mandate to implement its agenda. While this outcome brings a degree of political stability, it also introduces new risks depending on the execution of key policies. Australia’s Labor government has historically focused on wealth redistribution — including initiatives like student debt relief and expanded public services. While these programs can offer social benefits, they must be balanced against the risk of deterring high-income earners and private...

  In today’s dynamic financial environment, knowing where to invest your money is more important than ever. Both the Australian and US stock markets offer unique advantages, but understanding their differences can significantly boost your confidence as an investor. In this article, we’ll explore key contrasts, recent trends, and essential factors to help you make smarter, more informed investment decisions. Home Bias: The Comfort of Local Investing Many Australian investors tend to favour domestic stocks — a trend driven by familiarity with local brands, alignment in time zones, and homegrown financial products that often overweight Australian equities. However, Australia represents less than 2% of global stock market capitalisation, whereas the United States accounts for nearly 45%. A well-diversified portfolio should ideally reflect this disparity — though most portfolios fall short of global balance. Performance Snapshot: Australia vs. US Recent data shows the Australian stock m...