In the Media

Cash rate cut hurts vunerable retirees

Geelong Advertiser - 14 Feb. 15

Falling fuel prices are a bit like an economic stimulus package, where all Australians benefit. But not all forms of economic stimulus are fair, including the 0.25 per cent cut to the cash rate this month by the RBA, which has left thousands worse off. But that’s not all that isn’t fair. Those who are most vulnerable in our community, particularly our retirees, who are relying on the interest from their term deposits, are now receiving less...

Is it Time to Buy Resource Stocks

Australian Securities Exchange - 10 Feb. 15

Rising dividend yields on big mining stocks are a temptation, but beware the risks. When asked to write an article about buying big mining stocks for their rising dividend yield, I was not used to hearing the words dividend yield and mining stocks in the same sentence. Buying any stock just to get a dividend is not a good investment, regardless of the return being offered, the current market conditions or the size and profile of the company. I understand that with the cash rate at historical lows, finding a return greater than 3 per cent is attractive, and some of the big resource companies currently offer dividend returns around...

Banking Boys Club Inquiry

Daily Telegraph - 27 Jan. 15

The banking industry is a big boys club, and the recent inquiry into it was by one of their own, in ex-CEO of the Commonwealth Bank, David Murray. Therefore, this inquiry may not have been taxpayer money well spent. I say this for two reasons: Why would Murray want to tie the hands of his old banking mates and would anyone expect an ex-bank chief to lay down the law to the banking industry...

Much Ado About Greece

Daily Telegraph - 20 Jan. 15

If you thought it was groundhog day again you’d be right, because if you are like me, you’re probably tired of all the talk about a Greek exit from the euro. After all, they have been chatting about that since the GFC, which occurred in the prior decade. In my opinion, the big players who stand to lose the most have had more than enough time to either allow Greece to exit the euro, or to make the decision to write off some of the debt...

Timing Off For Interest Rate Cut

Geelong Advertiser - 17 Jan. 15

While I’m all for paying lower interest rates, is the current call by the big banks for the RBA to further cut the cash rate really what’s best for our country, or simply good business for the banks? The big banks are calling for the RBA to cut the cash rate, by a quarter of a percent from 2.50 per cent to 2.25 per cent, which would see interest rates fall, so as to stimulate borrowing. As the big banks seem to be the main campaigners, it would be wise to pay closer attention to the debate. We all can recall what occurs when banks are allowed more influence and control, just think of the GFC...