In view of the recent market ups and downs, if you’re an investor, you might be thinking about pulling out of higher risk investments, such as shares, and transferring them to lower risk investments, like cash or term deposits.

But if you’ve just started your investment journey, you might not be aware of how investments perform over time.

So here are some things to think about before making any changes to your investments.

Markets always recover

Share markets go up and down and this affects investor sentiment and the performance of listed companies which trade on the official stock exchange. The Global Financial Crisis (2008) had a major impact on the Australian share market but the market recovered. So it’s important to remember that markets always rebound from major events and move on to new highs, as the graph below shows.

Time is on your side

History tells us that investing in shares almost always provides a higher return than investing in low risk investments, such as cash or term deposits.

For example, if you’d had shares and switched out of them into cash during the Global Financial Crisis (GFC) in 2008, you’d still be recovering from their drop in value. But if you were an investor who ‘rode the storm’ and kept your money in shares, you’d be better off now, as you can see from the graph below.

We can’t predict the future

There’s no crystal ball to tell us when the markets are going to change and how they’re going to perform over time. That’s why, generally speaking, it’s best to have a variety of investments across different asset classes.

And remember to take a long-term view when it comes to investing.

Want to know more?

If you’d like to learn more, call us on (03) 9851 0300 so we can help you on your investing journey.


Due to an obsession with Taylor Swift and then The Carpenters I decided I needed to have a Carpenters’ CD with the full Burt Bacharach medley they performed in the early 1970s. So I went to Amazon and found that it was only on a Japanese Carpenters’ Anthology CD which would set me back $US150 from the US or $65 for a “very good” second hand edition from Japan. The last time I got a “very good” second hand Elvis book from Amazon it had some pages missing but I decided to give the Japanese CD a go.


ATM Tampering has become an increased method of Fraud. Here are some information and tips to follow when using ATMs.

What is ATM Card Skimming?

  • ATM card skimming is a method used by criminals to capture data from the magnetic stripe on the back of an ATM card. The data is then transmitted wirelessly to criminals waiting nearby.
  • The devices are attached over the top of an ATM’s card reader slot.
  • PIN capturing is attaching a camera in a certain position on the ATM in order to capture the user’s PIN.
  • ATM card skimming can also be done at EFTPOS terminals in shops. Staff can swipe your card through a fake terminal before the real one to capture your details.

How to identify an ATM skimming device

  • Pay attention to all of the touch and action points on the ATM. (i.e. keypad, card reader slot, lighting diffusers and ATM keypad area)
  • Inspect the front of the ATM for unusual or non-standard appearances around the card slot reader such as scratches, marks, adhesive and tape residue that could indicate that the ATM has been tampered with.
  • When shopping and paying via EFTPOS, keep an eye on your card at all times.

Examples of Tampered ATMs

ATM skimming devices can often be very hard to detect. The below example shows a machine with and without a skimming device attached. Common things to spot are a non-flashing light on the card slot and sticky residue around the card slot.

ATM Security Tips

  • If you do not feel safe using an ATM or think that it has been tampered with, do not use it.
  • Be aware of your surroundings when using an ATM. Does not use or approach an ATM if there are people nearby that make you feel threatened. Be suspicious of an ATM if it has a physical sign on it advising you to use another ATM.
  • Do not approach any suspicious people hanging around the ATM under any circumstances.
  • Do not allow anyone to observe you entering your PIN into an ATM. You should cover the keypad with your hands whilst you enter your PIN, even if you believe you are not being watched.
  • If an ATM does not return your card or does not issue your money stay near the ATM and contact your bank immediately.

Article originally published by Suncorp Bank: http://www.suncorpbank.com.au/about/ways-to-bank/atms


Uncertainties regarding the emerging world and specifically China and the US Federal Reserve’s much talked about first interest rate hike have continued to result in volatile share markets over the last few weeks even though most have not made new lows for this downturn.


Whenever there are sharp falls in share markets like recently, there is a temptation to wonder whether we are seeing a re-run of the last major crisis. Fortunately, the conditions today are very different to the run-up to the global financial crisis (GFC) which originated in the developed world, notably the US. The developed world hasn’t seen the sort of excesses that preceded the GFC: there has been no generalised bubble in investment spending (housing or otherwise), there has been no asset bubble, there has been no easing in lending standards like that which occurred with sub-prime debt and there has been no build up in inflation pressures or monetary tightening. So it’s hard to see the sort of unravelling in global financial markets that started in interbank lending and credit markets, threatening a seizing up of the global financial system and spreading through all growth assets that we saw through the GFC.



The Australian economy remains in a difficult period as the mining boom unwinds. Non-mining activity has bounced back but is far from strong enough to offset the headwinds coming from the mining downturn. This note looks at the outlook for growth, interest rates, profits and what it means for investors.


All major share markets have been sold down heavily over recent days. The correction on equity markets has also been accompanied by ongoing falls in the price of commodities and emerging market currencies. Since the beginning of August, Australian shares are down 12%, with losses of 10% to 12% recorded across the United States, Europe and Japan. Chinese shares have declined 14% since the start of the month.

What has caused the market correction?

There appears to have been little change in underlying market fundamentals, with the economic backdrop remaining relatively stable and supportive of modest company earnings growth. Rather, the sell-off seems to have been largely sentiment driven. AMP Capital Chief Economist Dr. Shane Oliver highlights that markets are currently “full of emotion” and characterised by nervousness.

Underpinning the market’s nervousness seems to be increasing concern over the outlook for Chinese economic growth, ongoing weakness in commodity prices and fears that the combination of falling commodity prices and weaker Chinese growth will be particularly problematic for emerging markets. As a result, funds have flowed out of emerging markets causing sharp falls in many emerging economy currencies.

Is it a correction or something worse?

Whilst a fall of the magnitude experienced in recent days was not expected, sharp declines in share markets of up to 20% are not unusual and do not imply there will be an extended period of weakness. In fact, corrections can be a healthy characteristic of “bull” markets, allowing investors to reassess valuations before a rising trend resumes. Dr. Oliver believes that the longer term trend for shares remains upwards, stating that:

“Our view remains that the cyclical bull market in shares likely has further to go. Put simply shares are not seeing the sort of conditions that normally precede a new cyclical bear market: shares are not unambiguously overvalued; they are not over loved by investors; uneven and below trend growth is extending the economic expansion cycle; and monetary conditions are likely to remain easy for a while yet.”

Previous market falls that have preceded more extended market downturns tend to have been associated with financial system dysfunction, excessive overvaluation or imminent economic recession. None of these factors appear to be in place today. In particular, the global economy remains on a modest growth path with low inflation and accommodative policy support creating an environment conducive to company profit growth. Locally, the latest profit reporting for the period ending June 30th, confirmed a steady rise in the profitability of Australian non-mining companies of around 7% from the previous year.

Although share market fundamentals may remain sound, share market valuations can move away from fundamentals for extended periods. As such, the latest sell-off suggests that caution is required by investors, particularly around emerging markets. However, with little change in the outlook for underlying company profitability, investors should maintain longer term strategies and asset allocations. In fact, for investors with underweight positions to equities, the current sell-off may represent an opportunity to enter the market. Please do not hesitate to contact your AMPFP adviser should you wish to discuss recent market events or any aspect of your investment strategy.

If you would like more information on about this or any other financial planning matter, please call our office on (03) 9851 0300 to speak to one of our financial planners.



The turmoil in global investment markets has continued into this week, although the last few days have seen a bit of stabilisation and improvement in several markets. From their highs to their recent lows major share markets have now had the following falls: Chinese shares -43%, Asian shares (ex Japan) -23%, emerging markets -22%, Eurozone shares -18%, Australian shares -16%, Japanese shares -15% and US shares -12%. Such falls are painful for investors. This note looks at some of the main issues.


As widely expected the RBA left interest rates on hold at their August Board meeting. While it appears to retain an easing bias with its assessment that growth is “below longer-term averages” and that the economy is likely to have “a degree of spare capacity for some time yet”, it appeared to soften this bias by removing its previous reference to a further fall in the $A seeming “both likely and necessary”


Since its 2011 high, the Australian dollar has fallen 34% in value against the US dollar. For some time our view has been that it will fall to $US0.70 by year end with probably an overshoot into the $US0.60s. However, as we all know forecasting precise currency levels is a mug’s game. The key is that the direction remains down and we are likely to see a classic overshoot. This note looks at why and what it means for investors.