Where to next?
Having suffered the worst calendar year for the ASX All Ordinaries index over the last century, we can assure ourselves that major falls are usually followed very quickly by some of the most significant sharemarket gains.
The sharemarket falls of 1973-74, 1981-82 and 1990 were all followed by some of the largest rises in sharemarket history.
The sharemarket has already factored in a severe downturn in the economy. Whether it materialises to the extent that the market has
Protection in Volatile Times
The last few months have certainly been tough for investors. What started as uncertainty in the markets turned bloodshed when the near collapse of a couple of major investment banks and AIG who underwrite many of the financial derivatives brought about the realisation of just how intertwined global credit, financial institutions and investment markets really are.
As a result, what started as uncertainty surrounding financial institutions became uncertainty around the economy as a whole.
How to minimise and avoid margin calls
How to minimise the risk of margin calls
Margin calls are a safety feature that lenders have added to their loans to ensure that the amount you owe doesn’t end up exceeding your portfolio value. ie it’s an early warning sign that you should reassess your portfolio to reduce your exposure and reassess your portfolio. Lenders aren’t closed to suggestions here, they just want to see your borrowing to fall below X% of the total value, if your able to add more cash, shares or managed funds