Episode 22: How To Identify A Bear Market

Dec 4, 2018 | Podcast Episodes

bear market investment

This week we’re explaining the characteristics of a bear market, and why evidence shows we’re not experiencing one, the withdrawal of major banks from the SMSF lending space and alternative strategies for growing wealth through your super fund.

Bear Market And Investments

The market continues to be highly volatile, but it certainly doesn’t have the hallmarks of a bear market. We’ve seen a big purple patch. Largely on the back of corporate tax cuts pushed through by the Trump administration. So what’s next? We’ve seen these cuts juice up earnings and GDP, now it’s leading to higher interest rates. We discuss what this means for stock and their likely future performance?

Do you want to find out how to navigate this volatile market with a personalised investment strategy? Contact us at Investor Exchange today.

Our Investor Exchange Round Table Discussion Covered:

  • It’s fair to say the news is reporting market downs more than the ups. Joel explains what price action is actually happening in the Australian market, including a breakdown of what to expect in the lows of a stock market in a deep correction. We’re seeing confirmation that the low is in after this undercut, following a very broad-based rally in the US stock market with a very big volume move higher. (8:40)
  • Brett discusses the withdrawal by major banks from the SMSF lending space, affecting those who want to buy property using their self-managed-super fund. With Loan to Value ratios decreasing and rates increasing significantly, it is becoming virtually impossible to buy a property within your SMSF if you need to borrow. Listen in for Brett’s insights on why this has happened and how to navigate this hurdle to continue investing in the property market. (15.40)
  • Louis explores the different options available for more aggressive investors to use inside superannuation. When it comes to using your superannuation you don’t need a 100% Loan to Value ratio. He explains the benefit of taking the superannuation balance you have and magnifying it to an extent that enhance the returns you could get on a profitable asset. (34.50)

 

You Cannot Be Serious this week:

  • Champion data have pulled out their rankings for every AFL teams list, with Collingwood and West Coast not even being in the top 4 ranking. Unbelievable Collingwood is listed at 5 – Joel and Brett have been through this list diligently and this list cannot be serious!
  • EY has made the news this week for hosting a bash for their clients costing 4 million dollars! What racked up this cost? Listen in to find out.
  • Ever wonder what banks do with their old bank vaults? In Florida USA they abandon them and leave them open to the public, in which a teenager walked into one and got locked in!
  • A US man went hang-gliding with a guide, who forgot to strap the man in! For the two minute journey the two men were hanging onto each other for dear life.

Listener Questions:

Write in to get your investment and wealth management questions answered by Joel, Brett and Louis.

Ask a Question: https://theinvestorexchange.com.au/ask/

Join the Conversation: fb.me/theinvestorexchange

The Investor Exchange Theme Music:  “Happy Happy Game Show” by Kevin MacLeod (incompetech.com) Licensed under Creative Commons: By Attribution 3.0.

The post Episode 22: How To Identify A Bear Market appeared first on The Investor Exchange.

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The Investor Exchange

The Investor Exchange is weekly podcast where the expert panel share banter, tips and insights on how to grow and manage wealth.

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