With recent cuts in interest rates to historic low levels, the income return from Term Deposits and cash trusts do not cover the basic needs of many retired people. We take a look at alternative income products.
Following the RBA’s decision to lower the cash rate by 25bp to 0.50%, we have decided to rebase sector earnings expectations. This is in anticipation of slowing home and business lending growth and another 25bp rate cut linked to COVID-19.
The slump in oil prices could further squeeze capital expenditure in the US shale sector and lead to production topping off in late 2020 after years of growth that transformed the United States into an energy exporter.
Australian investors don’t need to venture too far to take advantage of offshore growth opportunities and benefit from foreign currency earnings, but there are many other opportunities that Australian investors simply cannot get exposure to by investing locally.