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Five Things You Probably Didn’t Know About The Stock Market - Money and Investing with Andrew Baxter

The stock market is a massive puzzle that is changing every day. Nobody knows everything about the stock market, however we have a few things for you that you may not know. Join us this week as we dive into 5 things you may not know about the stock market: Money is Never Lost in the Market For many who have seen their accounts become smaller and smaller over time, this one may be tough to believe. The truth is however, money never simply disappears on the stock market, it merely changes hands. Host Andrew Baxter points out that where there are buyers, there are sellers meaning there is always someone else on the opposite side of any trade you take. What is happening is merely a transfer of ownership between people who have different opinions on where the price is going to go where someone is wrong and someone is right. The majority tend to find themselves on the losing side with a small percentage of people occupying the winning side. Keep this in mind when you are frustra...

Part 2 of our Market Outlook Review and Trading Tactics for 2023

Economic Outlook Strategy Following part 1 where we covered outlook, this week we dive into some strategies we can use for the markets in 2023. Join us as we discuss what you can do to potentially benefit from what we are set to see in the markets in 2023. Bonds 2022 saw a drop in equities, but the strange thing was it was the first time we have seen both bonds and equities fall by 10%. Host Andrew BAxter notes that they typically perform in opposite fashions, so this is a very strange occurrence. Our go-to throughout last year was TBT which is correlated with bond yields which move higher as bond prices fall lower. The opposite side of the coin for 2023 is the opposite which is getting long bond prices using an ETF with the code TLT. A possible move towards lower risk debt like government bonds may see demand increase which ultimately would push bond prices higher and thus bond yields lower. It may not be smooth sailing, however we are looking to see bond prices go...

Leaving The Yield Desert - Money and Investing with Andrew Baxter

Leaving the yield desert: As the big 4 banks in Australia are reporting their half-yearly earnings, Australia’s dividend investors are trekking into a yield desert. These companies struggle to maintain cash flow and payout their shareholders. NAB – the example Taking a look at one of Australia’s most historically ‘safer’ investments. The National Australia Bank (NAB), who just reported their half yearly earnings only to reveal some scary scars underneath their surface. They are one of the main drivers of the Aussie economy. As well as a stock that many Mum and Dad investors rely on for consistent dividend income given 48% of its shareholders are retail investors. NAB’s profit was down 51% from its last report which also showed increasingly higher debt provisions. The scary part – their 80cent dividend has now been cut to just 33cents. That’s a cut of nearly 60%. Quite frankly, these are diabolical numbers and anyone who relies on NAB as a source of income. As host Andr...

Initial Public Offerings – A Risky But Rewarding Grind

When a private company decides to go public and list through an Initial Public Offering (IPO), many investors salivate at the prospect of turning water into wine. It’s a risk vs. reward decision that can either be extremely lucrative or a devastating disaster. IPO’s – What are they An Initial Public Offering occurs when a private company decides to list on the stock market as a public company. But be wary, there are many myths surrounding the concept. Their reasons for this are mostly always the same – to raise more capital in order to fuel growth and expansion. When a company decides to IPO, the stock price initially set based on their expected future earnings along with the number of shares they plan to issue – often accompanied by a large investment bank throughout the entire process. Turning water into wine The million dollar decision – which IPO is going to make you a fortune and which one is going to be a disaster. With IPO’s, you either get it really righ...

Playing to the final whistle 2022 - Money and Investing with Andrew Baxter

  Christmas Holiday Shutdown After a long, hard year of work, we can often take our foot off the gas for the last couple of weeks before a holiday as though we have started our break early. This can manifest itself in employees going through the motions in the early part of December and if you have the end of the December and early January off work, then you will find yourself quite a way behind the eight ball. Host Andrew Baxter notes that if you’re taking it easy through December for a couple of weeks before your time off, you are effectively losing nearly one sixth of your possible productive time for the year. Clearly, this is a significant amount of time and if you’re working on self improvement and trying to succeed in your life, then perhaps it is important you find a way to dig deep and work hard through this period. If you have set goals, time is your ally and by relinquishing so much of it just because you want to clock off early, you risk failing to reach...

Why Women Make Better Traders Than Men? | Money and Investing

Why Women Make Better Traders Than Men? Is it their prudent appetite to risk? Their humble lack of ego? Or their ability to multitask? In any case, the female effect is real. Here’s why women typically make better traders than men: Gender bias – the boys club Let us ask you this – what’s the first thing you think of if we said Wall St, stockbroking, trading, or investment banking? We bet the first thought that comes into your head is a group of alpha males. Cisgender men wearing nice suits trying to dominate the financial markets; the boys club. The fact of the matter is, this is largely true and it is a gender bias that has existed in the industry since the dawn of time. As host Andrew Baxter claims, when working on his first trading floor in the city of London, out of 100 floor traders merely only 4 of them were women. Quite frankly, Andrew believes in his experience after 20 years of educating thousands of people is that women typically make better traders than men...

Behold The Year’s Australian Budget – Andrew Baxter

  Overview of the budget Let’s face it, this was no ‘normal’ annual budget presented by the Government – as this year we have to face a worldwide pandemic wreaking havoc across our labour market, infrastructure and construction industries, healthcare sector, and undeniably our overall economy. As we have now entered into a technical recession whereby our GDP (or economic outcome) is declining, the need for a better financial roadmap moving forwards was crucially important. Now, we have a predicted net debt of just over $922B by 2024. It’s important to note that as host Andrew Baxter prefaces the broadcast with – economics is based only on assumptions, and the assumption that we will have a coronavirus vaccine available to us by next year is a big one to take into account that may affect the entire outcome of this year’s budget. Key outcome #1: More Jobs Anything that can be done to create jobs is a great thing, hence why the government plans to spend over...