Latest News from Newealth

15 Dec 2020

Global Population: Numbers

Global population right now is estimated at over 7.8 billion and forecast to reach 9.4 billion in the next 3 decades.

The 10 most populous countries make up 4.5 billion or 58% of the total and are-

 

1.

China

1,441,873,450

2.

India

1,386,284,859

3.

USA

331,895,754

4.

Indonesia

274,863,991

5.

Pakistan

222,906,989

6.

Brazil

213,255,967

7.

Nigeria

208,559,445

8.

Bangladesh

165,449,046

9.

Russia

145,963,019

10.

Mexico

129,560,453

 

Source: https://www.worldometers.info/world-population/

Alternatively, if you view population concertation regionally you can see that well over half the global population is concentrated in Asia followed by Africa, Europe, North America and then South America.

Click for chart.

Why does it matter?

Natural resources, something for which Australia has in excess supply and the rest of the World very much needs including China.

A good place to be.

 

14 Dec 2020

Australian Billionaires: Vale Lady Shirley Lowy

The passing of any one person is a sad time for the family, friends and colleagues.

Irrespective of whether you are worth nothing or worth billions, we all begin at some point and then we end which is why it is so important to celebrate the journey of life.

We will never know the full extent to which Lady Shirley Lowy played a part in the creation of the Westfield fortune but for one thing I am certain and that is that her part was critical for it to succeed.

Enjoy this time of year for it is a beautiful opportunity to reflect and appreciate just how lucky you all are.

Click to read.

 

10 Dec 2020

Australian Household Income

The attached chart helps to highlight the complete collapse in household spending as a result of the COVID-19 Pandemic during 2020.

Interestingly, as household spending collapsed, saving soared to excessive levels which is not good for business or the economy.

The good news is that household spending collapse has bottomed and is on the way up which points to a more buoyant economy in 2021 and an improved profit outlook for business.

Click for chart.

 

7 Dec 2020

Electric Vehicles- Aptera

Oh my goodness.

Aptera is the first electric vehicle that requires no charging because it is solar powered.

This is amazing.

The future is most definitely electric.

Click for innovation.

 

1 Dec 2020

Success Habits

We are now only a few weeks away from the end of 2020.

What a bizarre year and what a start to the decade!

Still, now is a great time to reflect and think about what worked in 2020 and what needs to change in 2021.

To assist you in this process we have attached insights of super successful people and the 6 habits that helped them become successful-

  1.   Get off social media
  2.   Defer Gratification
  3.   Be skeptical of the news and politics and pay attention to how you allocate your free time
  4.   Hard work and hustle wins out in the long run
  5.   Embrace failure
  6.   Change your mindset and attitude

Enjoy and we wish you all a joyous Christmas and a healthy, happy and prosperous 2021.

Click to read.

 

24 Nov 2020

The Treasury: Retirement Income

The Treasury published the Retirement Income Review – Final Report on the 20 November 2020.

You can see the interaction of our retirement income system in the above diagram, the full report is 648 pages long but we have attached the Key Observation and Overview document which is only 44 pages.

Click to read.

Why is the Retirement Income Review – Final Report an important document?

Because the Federal Government will use this report to help it argue that the compulsory 9.5% superannuation guarantee (SG) should not be increased to the legislated 12%.

The Federal Governments position is that higher SG contributions come at the cost of lower wage growth and increasing the SG rate benefits high income earners the most.

Both of these two points are supported by the findings in the Retirement Income Review – Final Report.

In terms of absolute retirement dollars, we agree that the SG does benefit high income earns the most. It is a fact.

However in reference to lowering wage growth, must disagree based on the past evidence.

The SG began in 1992 at the rate of 3.0%, has been increased to the current 9.5% and wages during the intervening 28 years have most definitely increased and significantly for many industries.

Disciplined saving is always good. For everyone.

 

20 Nov 2020

Friday Tidbit

Real interest rates globally have been falling for 700 years according to research from the Bank of England.

The data shows that real interest rates have decreased by an average 0.016% per year since the 14th century to the record low today.

Global debt however, which is the sum of consumer, corporate, and government debt has risen to a record high of US$258 trillion or 331% of World GDP as at first quarter of 2020.

But wait, the US$258 trillion in global debt is forecast to rise further as a result of Government fiscal stimulus and falling tax revenues.

This quantum of debt will need to be dealt with eventually but in the interim it is a reason for why interest rates are expected to remain low for an extended period of time.

A rising interest rates now would just result in economic destruction globally and asset prices to collapse.

Click for chart.

 

17 Nov 2020

Harvard Business Review: LinkedIn

What’s the point of LinkedIn?

Good question.

This HBR Video talks about how to make LinkedIn work for you.

Click to watch.

 

10 Nov 2020

2020 US Presidential Election

Joe Biden has been elected the 46th President of the United States of America.

How unlucky could he be when you consider that he takes over governing the United States during a pandemic which has already killed over 238,000 Americans and is not finished, a record US$27 trillion in outstanding Government debt that continues to soar out of control and a Federal budget deficit (spending exceeding revenue) that is showing no signs of a return to surplus.

What a disaster for the new President of the United States of America.

Click for chart.

On the plus side, the Dow Jones Industrial Average has just busted through its February 2020 peak this morning on news that Pfizer and BioNTech have a vaccine for COVID-19 that is 90% effective.

We are most definitely living in exciting times and look forward to seeing how it all plays out over the next decade.

 

6 Nov 2020

Friday Tidbit

This is so accurate.

The speed of technological innovation is allowing companies to create enormous intangible value through patents, trademarks, software, information systems, artistic products and organisational capital and the existing legal, financial and regulatory framework is not keeping up.

This new asset-light capitalism is flipping economics on its head, making Accounting Standards obsolete for investors and allowing the winners to be more concentrated.

On the assumption that it is possible, we will just have to wait and see how long it will take the Governments of the World to catch this technological innovation phenomenon.

Click to read.

 

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