Financial System
Financial System
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How Do You Feel About Tax Cuts?
Australian tax cutsPrime Minister Malcolm Turnbull may be one step closer to passing corporate tax cuts. This comes after One Nation’s Senator, Pauline Hanson, backflipped and announced she would back the company tax plan. Ms Hanson struck a deal with the Turnbull government. But what does this tax cut plan mean for Aussie businesses and workers?
Get Ready to Profit from Higher Rates and a Tech Sell-Off
Stocks sell off, valuationWhat’s far more important is how investors reacted to the Fed’s outlook and their decision to increase interest rates. After the rate hike decision, US bond yields spiked, almost clearing 3%. But even before bond yields reach that 4% market, there’s one group of stocks that could fall regardless. Some believe 2018 could be the tipping point for big US tech.
Gold to Break Out?
gold to breakout?While the US dollar index broke down through support in January this year, Gold did not follow. It still had a bit more work to do. In my view, gold’s move higher is just a matter of time. Many gold stocks have already performed strongly. If you want to profit from this potential move, you need to position yourself now.
Larry Kudlow Thinks You Should Buy US Dollars and Sell Gold
US dollar and goldIt was interesting to hear Trump’s new economic adviser Larry Kudlow, say on CNBC last week that he would ‘buy king dollar and sell gold, that’s the trade that I love’. All this spending is going on not at a cycle low when government largesse is most needed. No, it’s happening right at the tail end of a historically long expansion.
Will the Big Four Banks Get Away with Their Behaviour?
big four banks royal commissionWhile the banks may be humiliated and reprimanded, and while their stocks may fall due to a lowering of consumer confidence…all the commission can really do is demand that the banks tell all. The commission can then give recommendations to the federal government. But whether the banks do anything, or even take on these recommendations, is a whole other story.
Why Gold Is Building Towards a Breakout
gold breakout coming?Right now in Australia, we’re getting low nominal wage growth and increased costs in about everything. That means many Australians are experiencing a reduction in REAL wages. Inflation is coming. It may not hit next month, this year, or even the next. But it’s coming. Which brings me to gold. When the market realises that governments and central banks will put up with higher than expected levels of inflation, it will start moving ‘insurance capital’ into the precious metal.
Would You Join the Amazon Bank?
Amazon bankOnline retailers are convenient. But is there anything more convenient than doing your banking where you shop? That’s Amazon’s next big idea. It was reported this week that Amazon is in talks with financial institutions to launch a ‘checking-account-like’ product.