Episode 63: Understanding the latest stock market news

Oct 8, 2019 | Podcast Episodes

This week Joel discusses the 40 billion dollar ASX fall last week and what it means for the market.  The media hype has people concerned however according to the statistics over the last 70 years, there is always a dip at this time of year. Since 1937 the avg September performance of the US S&P500 index is actually a 1% decline.

In fact, the statistics show an actually bullish time, with a report by LPL research indicating that the past 15 times the S&P lost growth in August, the rest of the year saw positive results every single time. October tends to be when the market bottoms out.

There are many headlines causing concern in the markets, the impeachment of Donald Trump, the US has launched tariffs on the EU, the trade spat with US and EU on airplane tariffs and whiskey, rising unrest in Japan, one of the worlds largest financial sectors. 

Listen to the podcast to answer the question: are these events going to be the catalyst for a major market decline?

This Week’s Investor Exchange Round Table Covered:

  • Brett looks at the latest interest rate cuts and the impact on the market. The RBA announced a new record low-interest rate of 0.75%. This is the first time it has been under 1% and the twelve consecutive rate cut since 2010. The banks have now confirmed if they will pass on the new interest rates to their customers(12.30)
  • Brett continues with more data on the bounce-back of the property market. While there has been a decline across all states over the last 12 months, if you look at the past 5 years there have been large increases with as high as 38% in Hobart and 26% in Melbourne. Listen in for the latest house price mediums for each state (26.25).
  • Louie discusses “how to think like a good financial advisor”. A good financial advisor will start by looking at your financial resources and what capacity you have to invest, what does the end game look like, and projecting it forward. A good financial planner has removed the risks associated with investing so there is no logical reason not to proceed with the plan. However, in many cases it comes down to how comfortable a person is emotionally.


You Cannot Be Serious:

You may have heard of swimming with the sharks but what about entering the lion’s den? A lady at New York zoo thought it was a good idea to enter the lion’s den. She danced, clapped and sang with the Lion watching on. Luckily there was a 14-foot moat between them and she walked away unharmed.

A person in Florida tried to fix his own clothes dryer only to discover the issue was a trapped snake! The man started to pull the dryer apart and discovered a snake trapped in the air filter. When he reached in to remove an obstruction he felt something moving, he had managed to create a gap for the snake and it slithered away.

A swiss tourist visiting Disneyland decided to make the place a little happier by taking LSD before visiting the park. After disappearing he sparked a 130 people search party to find him as the park closed. He was discovered a mile away naked and covered in scratches with no memory of what happened. 

Listener Questions:

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

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The post Episode 63: Understanding the latest stock market news 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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Joel, Brett and Louis begin the podcast with their take on the controversial outcome of the U.S presidential election. In today’s update, Joel discusses the recent turn in global markets and where the new winners and losers are. Brett updates us on the new changes in property market conditions in the regional area. Lastly, Louis brings with him the latest in superannuation fund performance.

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