RESEARCH

MEDIA

Purchasing shares can be a useful way to build your wealth over time. When selecting the right shares to buy, it is key to identify your purpose of acquiring the shares. Poor investment decisions are usually the product of a lack of research.

 

Prior to making any commitment to being a shareholder of a company, you must be weary and attuned to the current economic climate. It is pivotal to gain an appropriate understanding of the following economic factors:

  • Interest rates

  • Government policy

  • Exchange rates

  • Current market trends (i.e. volatility, slow growth etc)

  • The US market

  • Industry-specific influences

An understanding of the Reserve Bank of Australia (RBA) and its functioning is critical. The RBA contributes toward the stability of the currency, full employment and economic prosperity through monetary policy design which meets agreed medium-term inflation target. The RBA also operates to maintain a robust financial system and efficient payments system. The RBA's Quarterly Statement on Monetary policy is a useful resource which details the RBA's analysis of current domestic and international economic conditions, as well as an assessment for Australia's forecasted inflation rate. 

Market Analysis