Blog - Page 51 of 52 - Raiz Invest

Thinking about starting your
portfolio? Or maybe you’re already a small time investor looking for a little
more education. Either way, there’s no shame in not knowing all the ins and
outs of markets. And sometimes, just getting familiar with the most basic
concepts is all you need to make you feel more comfortable investing.

With that in mind we’ve got 5
investing basics to start you off:

1.       OWNING
A COMPANY (OR AT LEAST A LITTLE BIT OF ONE)

When you purchase a share on the
stock market you may ask, what am I actually buying? You know
your money has gone somewhere, but other than some documentation you don’t get
much back. So it’s a good question to ask.

The answer: You own a percentage
of the company (or companies) of the stock that you just bought.

If a company has 100 shares and
you buy 50, you own 50% of that company.

If you buy 10, you own 10%.

If you buy 1, you own 1%.

You’ll usually own much, much
smaller percentages than that, but no matter how much you own, if you have a
share you have a legal stake in that company.

2.       THE
MARKETS CAN GO UP AND DOWN

One of the greatest myths of the
stock market is that they usually go in one direction, up. We can very much
bust that myth and tell you they also go down.

Over days, weeks, months, and
years the markets can move in both directions. This is important to
bear in mind to avoid nasty surprises.

Read more: Dollar-cost
averaging

3.       DIVIDENDS

You’ve probably heard of
dividends, and you’re definitely forgiven for not knowing what they are.

Dividends are a portion of a
company’s earnings, paid to their shareholders. Usually a way for shareholders
to enjoy company profits.

If you own 10 shares of a
company, and they pay a dividend of $1 per share, you get $10 ($1
x 10)

Read more: What is a dividend?

4.       INVESTING
IS FOR EVERYONE

You’d be forgiven for thinking
that you need a fancy suit and a degree in finance to invest in the stock
market. However, you don’t. Anyone can invest in publicly
listed companies, because they are as the name suggests, public! Just like
kicking a ball around with your mates on a public oval.

We suggest you do your research
and think about your personal situation before making any investment decision.
With apps like Raiz around anyone can invest, any time they want, with as
little as $5. For more information on Raiz fees, click here.

Read More: Unique Ways to
Invest with Raiz

5.       ROME
WASN’T BUILT IN A DAY

This isn’t the Wolf of Wall
Street, and sadly we’re not Leonardo DiCaprio. When most people invest they
don’t do it to get rich quick. Building a portfolio and letting it grow takes
time, but like much of life, good things come to those who wait…

… but don’t wait until tomorrow
to start investing. Now you know the basics you can start building your
portfolio today!

Important Information

The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product.

The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information.

Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz.

Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.

Read Post

We
get a lot of questions about why it takes so long for a balance to appear in Raiz
accounts after hitting deposit, so to explain this we thought we’d break this
process down step-by-step, and how long these steps take.

Read Post

It’s
probably not going to be the most interesting thing you do this year, but
building a budget could be one of the most important… and it doesn’t really
take that much effort. Here’s 4 quick reasons you should take an hour out of
your busy schedule to build a budget:

1)      Gets
You Thinking

It’s
too easy to live your life on autopilot these days. When you can use your card
just about anywhere it’s easy to forget just how much you are spending, and
what you are spending it on. If anything, writing out a budget gets you
thinking about what you’re currently spending your hard earned money on, and
what you actually want to be spending it on.

2)      No
Nasty Surprises

Not
only will an effective budget tell you what you’re spending money on, but also
when you are spending it. This can’t help avoid nasty surprises in your bank
account when you have to pay your phone, electricity, rent, gym membership or
any other kind of bill as many of us do.

3)      Forward
Planning

Having
a budget allows you to look not only to tomorrow, but to the coming weeks, months,
and years. It allows you to plan a path to financial fitness, and identify what
you need to do to get there.

4)      Old
Habits Die Hard

Even
if it’s not the most pressing issue, developing a disciplined saving plan is
always important. If you get into the groove of keeping a track of your
spending habits, it’ll be all the more easy when you have a bigger, more
complicated budget to deal with.

So
if you have a bit of spare time this week, try building a budget, and be sure
to let us know on Facebook and Twitter of any tips you have!

You can start using Raiz at any time by clicking this link! For more information on Raiz fees, click here.

Important Information

The information on this website is general advice only. This means it does not consider any person’s investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the Raiz product.

The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will impact the accuracy of the information.

Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz.

Past return performance of the Raiz product should not be relied on for deciding to invest in Raiz and is not a good predictor of future performance.

Read Post

4 March 2016

The Hon. Malcolm Turnbull,
MP

Prime Minister

Parliament House

Canberra ACT 2600

Dear
Prime Minister,

Establishment of the FinTech Advisory
Group

I write to congratulate the Australian
Government on its decision to establish a FinTech Advisory Group, and I
continue to welcome the increased focus on encouraging innovation in Australia,
particularly in the FinTech sector.  As
an active member of this community, and having recently launched our Acorns
product in Australia, I have experienced first-hand the dramatic surge in
activity in this industry, and I look forward to its continued growth.

That said, I strongly believe there is
major issue that, if left unresolved, will prevent FinTech innovation and
competition achieving its full potential in Australia.

It is my contention there is lack of
understanding and confusion in the public mind that they are no longer
protected by Australian regulations, and that the liability protections under
the terms and conditions on which they conduct their internet banking do not
apply when they deal with FinTech start-ups such as ourselves.  This
is not the case.

I am concerned and disappointed to see
banks and other financial institutions seek to discourage users from engaging
with FinTech by exacerbating the confusion and fear in this area.

It should not fall upon the small start-ups
to educate investors about their rights and obligations vis-à-vis their banks,
and it should not fall upon small start-ups to monitor the information that is
being disseminated to consumers by bank employees.

To explain this more specifically, Acorns
is a micro investing / micro savings smartphone application. When a user signs up
to the app, they provide Acorns (and its service provider Yodlee) with their
bank account log-on details and password. There has been significant media
commentary (both social and mainstream),
including comments made by persons who purport to be bank employees, that by
doing this, the user becomes liable for any
unauthorised transactions. As you would expect, these type of comments are
creating great consternation and discouraging users from engaging with FinTech
companies, such as Acorns.

However, this commentary, and the stance
taken by the purported bank employees, is wrong. It is clear under the ePayments Code (Code) (which all major Australian banks have subscribed to) that
the user will not be liable for any unauthorised transactions because:

(a)
the user expressly appoints
Acorns and Yodlee to collect information on the user’s behalf only (i.e. Acorns
and Yodlee have “read only” access to the user’s bank account. They cannot effect transactions); and

(b)
Acorns and Yodlee protect the
data using encryption and bank standard security measures to keep it safe.

Consequently, the user does not breach the requirements of the
Code, nor the terms and conditions of their bank contract and does not become liable for any and all unauthorised transactions.

I would urge the FinTech Advisory Group and
ASIC to consider this issue, given their mandate to encourage FinTech
innovation, while reducing barriers and ensuring that these barriers are not
(mis)used by incumbent players to discourage competition. Unless this issue is
resolved, I believe it will stunt the development of FinTech, an integral part
of the Innovation strategy recently articulated by you.

Please be aware that we will release a copy
of this letter to our users (of which there are over 50,000) and to the media
at large.

Should you wish to discuss this matter
further or if you have any questions or comments, please contact me on 1300 954
678.

Yours faithfully

George
Lucas

Managing Director

Acorns Grow Australia
Limited

Read Post

We’ve received a lot of questions regarding
the legality of submitting one’s personal bank login details to Raiz in order
to use our Round-Ups feature, so we thought we would try to explain the
ePayments Code, which the Australian Securities & Investment Commission
(ASIC) administers on behalf of its subscribers, the banks and institutions. To
see if your financial institution is a subscriber, you
can view a list on ASIC’s website.

We recommend you keep reading, but if
you can’t be bothered with the legal mumbo jumbo, here’s the take home message:

Having researched ASIC’s ePayments code, we can tell you
that using your internet banking login details with Raiz should not void any
terms and conditions with your bank.

To quote ASIC’s site directly:

“Almost all banks, credit unions and building societies
in Australia are subscribers to the ePayments Code. Other providers of consumer
electronic payment facilities such as PayPal have also subscribed to the code.

Among other things, the ePayments Code:

·
requires subscribers to give consumers clear and unambiguous terms
and conditions,

·
stipulates how terms and conditions changes (such as fee increases),
receipts and statement need to be made

·
sets out the rules for determining who pays for unauthorised
transactions, and;

·
establishes a regime for recovering mistaken internet payments.”

Most of the questions we have received come
from customers who believe that entering one’s login details into the Raiz app will make
them liable for any losses in their account. This is false.

Entering banking login details into the
Raiz app to create round-up opportunities will not see you become liable for unauthorised transactions because:

(a) the user expressly
appoints Raiz and Yodlee to collect information on the user’s behalf only (i.e. Raiz and Yodlee have “read only” access to the user’s bank account.
They cannot effect
transactions); and

(b) Raiz and Yodlee
protect the data using encryption and bank standard security measures to keep
it safe.

Raiz uses industry-standard security like
256-bit SSL encryption of sensitive information, redundant backups, and
disaster recovery planning. Even in the incredibly unlikely event that all
these measures fail, customers of Raiz are insured against fraud &
cyber-crime. This insurance does not invalidate the liability of your financial
institution, so you are protected against liability and loss.

In conclusion, Raiz and its use of a
transaction aggregator to retrieve round-ups on your behalf, we believe, is in compliance
with ePayments Code as outlined by ASIC. You will not be forfeiting any
protection by using your online login with Raiz. Stay safe out there, and
continue to be smart about with whom you share your sensitive information.

We appreciate your trust and loyalty. We
promise never to abuse it.

Source:
ePayments Code – http://asic.gov.au/for-consumers/codes-of-practice/epayments-code/

Relevant excerpts below:

unauthorised
transaction means a transaction that is not
authorised by a user

…

9 Scope Transactions not authorised by a
user

9.1 This Chapter applies to unauthorised
transactions. It does not apply to any transaction that is performed by a user
or by anyone who performs a transaction with the knowledge and consent of a
user.

…

10 When holder is not liable for loss

10.1 A holder is not liable for loss arising
from an unauthorised transaction if the cause of the loss is any of the
following:

(a) fraud or
negligence by a subscriber‘s employee or agent, a third party involved in
networking arrangements, or a merchant or their employee or agent,

(b) a device, identifier
or pass code which is forged, faulty, expired or cancelled,

© a
transaction requiring the use of a device and/or pass code that occurred before
the user received the device and/or pass code (including a reissued device
and/or pass code),

(d) a transaction
being incorrectly debited more than once to the same facility, and

(e) an
unauthorised transaction performed after the subscriber has been informed that
a device has been misused, lost or stolen, or the security of a pass code has
been breached.

10.2 A holder is not liable for loss
arising from an unauthorised transaction that can be made using an identifier
without a pass code or device. Where a transaction can be made using a device,
or a device and an identifier, but does not require a pass code, the holder is
liable only if the user unreasonably delays reporting the loss or theft of the
device.

10.3 A holder is not liable for loss
arising from an unauthorised transaction where it is clear that a user has not
contributed to the loss.

…

12 Pass code security requirements

Pass code security

12.1 Clause 12 applies where one or more
pass codes are needed to perform a transaction.

12.2 A user must not:

(a) voluntarily
disclose one or more pass codes to anyone, including a family member or friend,

(b) where a
device is also needed to perform a transaction, write or record pass code(s) on
a device, or keep a record of the pass code(s) on anything:

(i) carried with
a device, or

(ii) liable to
loss or theft simultaneously with a device, unless the user makes a reasonable
attempt to protect the security of the pass code, or

© where a
device is not needed to perform a transaction, keep a written record of all
pass codes required to perform transactions on one or more articles liable to
be lost or stolen simultaneously, without making a reasonable attempt to
protect the security of the pass code(s).

12.3 For the purpose of clauses
12.2(b)–12.2©, a reasonable attempt to protect the security of a pass code
record includes making any reasonable attempt to disguise the pass code within
the record, or prevent unauthorised access to the pass code record, including
by:

(a) hiding or
disguising the pass code record among other records,

(b) hiding or
disguising the pass code record in a place where a pass code record would not
be expected to be found,

© keeping a
record of the pass code record in a securely locked container, or

(d) preventing
unauthorised access to an electronically stored record of the pass code record.
This list is not exhaustive.

12.4 A user must not act with extreme
carelessness in failing to protect the security of all pass codes where extreme
carelessness means a degree of carelessness that greatly exceeds what would
normally be considered careless behaviour.

Note 1: An example of extreme carelessness
is storing a user name and pass code for internet banking in a diary,
BlackBerry or computer that is not password protected under the heading
‘Internet banking codes’.

…

12.9 Where a subscriber expressly or
implicitly promotes, endorses or authorises the use of a service for accessing
a facility (for example, by hosting an access service on the subscriber’s
electronic address), a user who discloses, records or stores a pass code that
is required or recommended for the purpose of using the service does not breach
the pass code security requirements in clause 12.

Note 1: For example, if a subscriber
permits users to give their pass code(s) to an account aggregator service
offered by the subscriber or an associated company, a user who discloses their
pass code(s) to the service does not breach the pass code security requirements
in clause 12.

13 Pass code security guidelines

13.1 A subscriber may give users guidelines
on ensuring the security of devices and pass codes in their terms and conditions
or other communications.

13.2 Guidelines under this clause must:

(a) be
consistent with clause 12,

(b) clearly
distinguish the circumstances when holders are liable for unauthorised
transactions under this Code, and

© include a
statement that liability for losses resulting from unauthorised transactions
will be determined by this Code, rather than the guidelines.

…

15 Network arrangements

15.1 In clause 15:

merchant
acquirer means a subscriber that provides a service
to merchants that enables them to accept/receive electronic payments

party
to a shared electronic payments network includes
retailers, merchants, communications services providers and other organisations
offering facilities, merchant acquirers and subscribers

15.2 A subscriber must not avoid any obligation
owed to users under this Code on the basis that:

(a) it is a
party to a shared electronic payments network, and

(b) another
party to the network caused the failure to meet the obligation.

15.3 A subscriber must not require a user
who is their customer to:

(a) raise a
complaint or dispute about the processing of a transaction with any other party
to a shared electronic payments network, or

(b) have a
complaint or dispute investigated by any other party to a shared electronic
payments network.

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:

 

Important Information

The information on this website is general advice only. This means it does not take into account any person’s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the product.

A Product Disclosure Statement for Raiz Invest and/or Raiz Invest Super are available on the Raiz Invest website and App. A person must read and consider the Product Disclosure Statement in deciding whether, or not, to acquire and continue to hold interests in the product. The risks of investing in this product are fully set out in the Product Disclosure Statement and include the risks that would ordinarily apply to investing.

The information may be based on assumptions or market conditions which change without notice. This could impact the accuracy of the information.

Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz Invest or Raiz Invest Super.

Past return performance of the Raiz products should not be relied on for making a decision to invest in a Raiz product and is not a good predictor of future performance.

Read Post

“He that is good for making
excuses is seldom good for anything else” – Benjamin Franklin

What does everyone who finds it
hard to save money have in common? We all have an excuse for why we can’t do
it. Let’s talk through a few of the most commonly made excuses.

1.       You
can’t afford it

You want to save, maybe you even
“try” to save sometimes, but your money just doesn’t stretch far enough. It’s
not unusual to feel that you’re not making enough money to start saving, and
even those who have generous wages report this as an excuse not to save.

So why do you feel like you don’t
have enough money? The simple answer is that you may just be spending more than
you actually need to. Take a good hard look at
your “necessary” spending, and think about which items you may be able to cut
down on, and try not to spend more just because you’re earning more.

2.       You
will start saving “tomorrow”

You want to save, but it can wait
until tomorrow, or next month, or next year, what difference does it make? Well
actually it could make a lot of difference. Too many of us tell ourselves that
it’s fine for us to just leave it until later to start saving.

Take a moment to think of your
future self, who wants to buy a house, go on holiday, or maybe even retire
early. Now ask yourself if there’s any good reason why you shouldn’t start
saving now; with compound returns it can make a big difference if you start
saving early. So don’t put off until tomorrow what you can do today.

3.       It’s
too complicated

With all the different saving and
investing options, it’s not surprising that many of us are confused about where
to start. Super funds, savings accounts, share market? You’ve got a few
options, but they don’t make it that easy for you. Choosing the right super
fund, or constructing the right portfolio of shares can be a daunting task at
times, and may require a significant level of knowledge and expertise.

ETFs provide you with a great
option to begin investing in the share market; ETFs can track a certain index
such as the ASX 200, and allow you to gain exposure to a variety of different
shares for a very small fee.

Using Raiz to help stop the
excuses

Whether you think you can’t
afford it, you’re putting it off until tomorrow, or it all seems too complicated,
we think that by using Raiz you can help eliminate those
excuses from your life.

By rounding-up your purchases, Raiz
helps you link spending to saving, so instead of thinking about what you can
and can’t afford, you can just go about your business while Raiz does your
saving in the background.

It’s never too complicated with Raiz;
we’ve constructed 5 different portfolios for you to choose from, from 7
different ETFs. With Raiz you get the sophistication of a fund manager, with a
fraction of the fees. For more information on Raiz fees, click here.

You don’t need to keep putting it
off until tomorrow. We have made our sign-up process as easy as possible, so
you can start today and thank yourself later.

Say hello to Raiz, and goodbye to
excuses.

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:

 

Important Information

The information on this website is general advice only. This means it does not take into account any person’s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the product.

A Product Disclosure Statement for Raiz Invest and/or Raiz Invest Super are available on the Raiz Invest website and App. A person must read and consider the Product Disclosure Statement in deciding whether, or not, to acquire and continue to hold interests in the product. The risks of investing in this product are fully set out in the Product Disclosure Statement and include the risks that would ordinarily apply to investing.

The information may be based on assumptions or market conditions which change without notice. This could impact the accuracy of the information.

Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz Invest or Raiz Invest Super.

Past return performance of the Raiz products should not be relied on for making a decision to invest in a Raiz product and is not a good predictor of future performance.

Read Post

Hello and a Happy New Year from the Raiz blog! 2015 was
pretty good, but with Raiz’ full launch next month it looks like 2016 will be
even better. Around this time of year people start to make resolutions,
things they want to start doing, or stop doing, to improve their life. We may
be slightly biased, but we reckon 2016 should be the year you make saving and
investing your resolution. Starting, and sticking to, a good savings plan could
be one of the most important things you do this year, and could prove to be a
big step on the way to reaching your financial goals.With that in mind we thought we’d talk about how to save,
sticking to your resolution, and how Raiz could help.

The Big Budget Every saving plan starts with a budget. It’s important to
get it all on paper (or excel). Writing it all out makes you realise how much
you have, what your necessary expenses are, and where you could be making cuts.
Take a bit of time on your budget, and be realistic, there’s no point in making
a strict budget you can’t keep to.

Tips from the team at Raiz Here are some of our team’s best tips for saving money:George – Cut the Coffee: If you’re like many Australians, you’re probably spending far too much on coffee. Instead of buying two $4 coffees
a day, buy a jar of instant and save $30 a week.

Ali – Cash is king: It’s pretty easy to lose track of how much
you’re spending when you just tap your card everywhere. Using cash gives me a
regular reminder of how much I’ve spent each day.

Brendan – Make a date with your money: Holding yourself
accountable is important. Set aside a time every week to look at how much you
spent, and whether you’re hitting your saving targets.

Tony – Set and forget: If you can, try automatically setting
aside a portion of your pay check into a savings account every month – you can
usually set up these automatic transfers through your online banking.

Ishaan – $5 Jar: I’ve found that you don’t get given $5 notes
as much as you’d think. Try putting away each $5 you get into a jar, then focus
on keeping out of the jar.

Sticking to your plan: Sticking to your savings plan can be the most difficult
part. Whether it’s new clothes, a big night on the town, or any of the other
million things to spend your money on, it’s quite easy to break your budget.
Here’s a few things that may help you stick to the plan.

Save before you spend: Money can be like a gas that fills all the available space, you end up spending
whatever you have. How to you combat this: Put your money away before you have
the chance to spend it.

Goals based saving: Setting targets for yourself can be a great way for you to stick to a plan. Make your
milestones realistic so you don’t get disheartened. When you see that you’re
making progress towards a certain goal (enough for a holiday, new car, etc.),
you’ll be encouraged to keep at it.

Make it habitual: Once you get into the habit, saving can seem quite addictive. There’s no easy way to
make something a habit, but there are tools out there. Some of the Raiz team
use apps such as 7 Weeks, and Habitica to help them start a habit. 

How Raiz fits in: Raiz is here to help you with your resolution. With Recurring
Investments you can save before you spend, regularly saving money daily,
weekly, or monthly. Unique ways to invest with Raiz.With Round-ups you
can save whilst you spend, so even if you’re making more purchases, you’re
saving and investing at the same time. A natural way to invest.With Raiz you
can track how much you have invested, and how much it’s grown, so you can keep
your financial targets in view. We hope we have a great 2016 with you as an Raiz customer. For more information on Raiz fees, click here.

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:

 

Important Information

The information on this website is general advice only. This means it does not take into account any person’s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the product.

A Product Disclosure Statement for Raiz Invest and/or Raiz Invest Super are available on the Raiz Invest website and App. A person must read and consider the Product Disclosure Statement in deciding whether, or not, to acquire and continue to hold interests in the product. The risks of investing in this product are fully set out in the Product Disclosure Statement and include the risks that would ordinarily apply to investing.

The information may be based on assumptions or market conditions which change without notice. This could impact the accuracy of the information.

Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz Invest or Raiz Invest Super.

Past return performance of the Raiz products should not be relied on for making a decision to invest in a Raiz product and is not a good predictor of future performance.

Read Post

It’s usually around this time of year that we start to look at the calendar, and ask ourselves where the year went. So we thought there would be no better time than now to reflect, and look at the big events that shaped the financial markets in 2015.
Stocks slipping up on Oil
What?
The price of oil has been in freefall. It’s hard to believe that in 2014 the price of oil was US$115 a barrel. Since then, the price has fallen nearly 70%, and is now at just over US$36.
Why?
In short, supply and demand: Too much oil being produced, and not enough people buying it.
Effect?
Sharp falls in some of the biggest Australian companies’ share prices. Santos is at just 25% of the price it was in late 2014.
A near Greek Tragedy
What?
It seems like an awfully long time ago – but over May, June, July of this year, Greece was on the verge of leaving the European Union.
Why?
Debt. The Greek economy is in a bit of a mess, and they owed people a lot of money.
In June they had a big debt repayment to make, and the only way they were going to be able to make it was by the rest of Europe helping them out.
But they wouldn’t help Greece out unless Greece agreed to some economic reforms. Greece were reluctant.
Effect?
Greece ended up agreeing to the reforms, they were bailed out, and managed to make their debt repayment.
The markets were very volatile around this time, but they soon stabilised and the whole incident was actually quickly forgotten about.
Trouble in the Far East, sending markets south
What?
The market had been worrying about a slowdown in Chinese growth for a while, and in July and August these fears came to a head.
Why?
China has experienced spectacular growth in recent history, and the data indicated a big slowdown.
Effect?
The Chinese stock market fell spectacularly in one day, China’s Black Monday, as it was dubbed. But before that, it had already fallen 15% in July. It is important to note that the Chinese stock market had grown by ~150% in the year before “Black Monday”.
Global stocks fell with China – but now there is widespread agreement that China’s growth is stabilising and not slowing down even faster.
Rising interest in Fed Rates
What?
The event everyone had been waiting for all year has come right at the end of 2015, with the Fed finally raising rates for the first time in 9 years.
Why?
After the GFC, rates have been at rock bottom to support the US economy and help it grow. With strong data coming from the US and signs that the economy is on a good path to recovery, the Federal Reserve have begun to raise rates.
Effect?
The symptoms (strong US economy), and anticipation of a rate rise has seen a very strong US dollar in 2015. We also saw a very weak Australian dollar with the RBA cutting Australian rates. If you went on holiday then this is probably a gloomy reminder, as it has basically meant you haven’t been able buy as much foreign currency for your Australian dollars.
What’s in store for 2016
Well the biggest news around the world in 2016 will surely be February’s launch of Raiz Australia…
But other than that there is a lot of room for the Australian and International stock market to go up, especially after a disappointing 2016. But stock markets have risk and it is never a certainty. Let us know your predictions for 2016 on our Twitter and Facebook pages.

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Important Information

The information on this website is general advice only. This means it does not take into account any person’s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the product.

A Product Disclosure Statement for Raiz Invest and/or Raiz Invest Super are available on the Raiz Invest website and App. A person must read and consider the Product Disclosure Statement in deciding whether, or not, to acquire and continue to hold interests in the product. The risks of investing in this product are fully set out in the Product Disclosure Statement and include the risks that would ordinarily apply to investing.

The information may be based on assumptions or market conditions which change without notice. This could impact the accuracy of the information.

Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz Invest or Raiz Invest Super.

Past return performance of the Raiz products should not be relied on for making a decision to invest in a Raiz product and is not a good predictor of future performance.

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