Latest News from Newealth

Friday Tidbit

• Posted by Dejan Pekic BCom DipFP CFP GAICD

This forecast from The Yale Budget Lab is just further confirmation that increasing tariffs increases the cost of goods both in the short term and long term.

Increasing the cost of goods is not beneficial for the US economy because US consumers will pay more (and in most cases materially more) for the same imported goods which then slows economic growth.

Tariffs are just bad news.

Click for chart.

Our business is based on referrals, so if you have family, friends or colleagues that want advice please ask them to contact us.

RBA Cash Rate

• Posted by Dejan Pekic BCom DipFP CFP GAICD

It was literally inconceivable to forecast when we started this business that the RBA Cash Rate would fall from 12.00% in February 1991 to 0.10% in November 2020.

Click for chart.

The RBA reducing the Cash Rate by 0.25% today which is good news for almost every financial asset price because a reduction in cost increases profit.

However, lowering interest costs also has the negative effect of fanning asset price bubbles like for example, residential property in major population centres of Sydney and Melbourne.

If you are a student of Value Investing Principles as taught by Benjamin Graham then you would know that current residential property prices make no sense relative to the rental income that they produce.

The key question right now that is being asked by the market is how low will interest rates fall in this rate cutting cycle?

Our business is based on referrals, so if you have family, friends or colleagues that want advice please ask them to contact us.

The Buffett Indicator

• Posted by Dejan Pekic BCom DipFP CFP GAICD

We are most likely at a turning point.

The Buffett Indicator is a measure of the total value of all publicly listed companies in a country divided by a country’s Gross Domestic Product (GDP) to provide an indicator of whether publicly listed companies are overvalued or undervalued.

A value over 100% is a sign of being overvalued while well under 100 in undervalued.

The current US Listed Companies Market Cap to GDP Ratio is 203% as at 30 June 2025 which means it is stretched higher than previous asset price crashes.

Click for chart.

Question. Do you speculate and make changes prior to some unknown as yet future financial markets catastrophe?

No, absolutely not.

Benjamin Graham’s Value Investing Principles teach us to remain invested according to our appetite for volatility and when fear and panic next take hold, react by buying more quality assets at discounted prices.

WARNING, this does not constitute Personal Advice. To discuss if this is an appropriate strategy for your given circumstances, please do not hesitate to contact us directly.

Our business is based on referrals, so if you have family, friends or colleagues that want advice please ask them to contact us.

Friday Tidbit

• Posted by Dejan Pekic BCom DipFP CFP GAICD

Seriously, what is happening in Australia?

Is this statement by Centre for Independent Studies accurate…

‘More than half of voters now rely on Government for most of their income through public sector wages, welfare benefits and or subsidies’.

Have we forgotten that Government does not produce anything. Governments essentially make laws, collects taxes and then spends those tax dollars.

High and increasing dependency (or more accurately Socialism) will only result in economic and financial failure for Australia.

According to Benjamin Graham… ‘To be an investor you must be a believer in a better tomorrow‘.

That means we need less dependency and more productivity going foward.

Click to read.

Our business is based on referrals, so if you have family, friends or colleagues that want advice please ask them to contact us.

Billionaires Summer Camp: Sun Valley Conference

• Posted by Dejan Pekic BCom DipFP CFP GAICD

Morning all and it is such a beautiful Winters Day in Sydney.

The 30 June 2025 financial year is behind us and the returns numbers confirm that was a very successful year for Newealth clients but more on that at another time.

This caught our attention, the annual Allen & Co. four-day conference for Billionaires and CEOs to meetup, do deals and work out what is going on in the World.

It takes place at Sun Valley Lodge in Idaho USA, meeting are private, no politicians and personally have never been invited.

The talent attending is phenomenal and who knows, maybe they can find a work around for Trumps Tariffs which are causing lots of volatility/uncertainty for asset prices.

For some of the names at this year’s Sun Valley Conference.

Click and see.

Our business is based on referrals, so if you have family, friends or colleagues that want advice please ask them to contact us.