Global equities increased modestly in July, with Overseas Developed Shares rising 1.1% in hedged terms. US equities in particular reached fresh highs in the second half of July, largely driven by technology stocks, however markets pulled back following an indication from the US Federal Reserve (Fed) that the 0.25% rate cut, to a range of 2.00% to 2.25%, was not necessarily the beginning of an easing cycle.
If investment had a magic number, it would be 72. Here’s why.
The rule of 72 is used to calculate approximately how many years it will take for an investment to double at a particular rate of return.
Global equities rebounded in June following the sharp sell-off in May, with overseas developed shares rising 5.9% in hedged terms. Progress on trade talks and strong indications from central banks to move to more accommodative monetary policy supported the risk-on environment for investors.
Global equities experienced a sharp sell-off during May, with Overseas Developed Shares falling 6.0% in hedged terms. The turnaround in market sentiment, from the first four months of the year, was sparked by increased trade tensions between the US and China, as well as President Trump’s announcement of tariffs on Mexico.
From 1 July insurance held in an inactive superannuation fund will be cancelled, unless the owner notifies the fund that they wish to retain their insurance cover. An ‘inactive’ superannuation account is one that has not received a contribution or rollover for 16 months. While this measure will be of benefit to many, it poses a risk to those who wish to retain their cover which, once lost, it may not be able to be recovered.