Find out why Tesla’s latest EV advancements, the Australian dollar and banking sector woes all have a role to play in your investments. (Reading time 3:14 mins)
This information does not take into account your personal objectives, financial situation or needs. You should consider if the relevant investment is appropriate having regard to your own objectives, financial situation and needs.
1. Tesla pulls an Apple
Just when people thought unveiling the Tesla Semi truck was enough electrifying for one day, Elon Musk threw in a surprise Roadster for good measure.
Apple has famously used their hotly anticipated product launches to surprise and delight with big news, and Musk has followed suit.
Except instead of revealing a new iPhone, he announced “the fastest production car ever made, period” going from 0-100km/h in ~2 seconds.
What does this mean if you’re invested in car manufacturers?
Nearly every major car manufacturer has announced plans to partly or completely electrify their range of cars in the next decade.
Electric cars are here to stay and will become a mainstream seller much faster than most people anticipate. Tesla is the electric car leader right now but mainstream manufacturers are catching up fast.
What does this mean if you’ve invested money with AtlasTrend?
We believe electric vehicles will dominate. One of our managed funds is invested in Daimler, the maker of Mercedes cars.
The company has announced it will offer electric versions of every single car it makes by 2022.
We’re also considering other investment opportunities such as the supply chain for electric vehicles, battery technology providers and clean energy generation.
2. Aussie dollar dips again
The Australian Dollar hit a 5-month low with very few signs of recovery since June.
The most recent slump came moments after the Reserve Bank released minutes from their meeting, where members discussed the uncertainty surrounding when and how wage growth will happen.
What does this mean if you’re invested in international stocks?
If you own international stocks or managed funds investing in them for you, it is good news for the value of your investments.
The Australian dollar dropping means your international investments are worth more as being denominated in another currency (e.g. the US Dollar) means they should have appreciated in value.
The downside, of course, is your overseas holiday might have become a bit more expensive.
What does this mean if you’ve invested money with AtlasTrend?
We’re a global investing service, so naturally, all of our managed funds invest in international stocks. The fall in the Australian dollar over the last few months has helped with generating more returns for our investors.
Will the Australian dollar keep falling? Investment bank Morgan Stanley seems to thinks so, and we agree with their position it is likely to fall further.
3. Banking sector crackdown
It should come as no surprise there has been mounting pressure on the government to launch a royal commission (or commission of inquiry) into Australia’s banks.
Despite a healthy track record of scandals, the PM ruled out a royal commission on Wednesday.
He thinks it would “simply be an inquiry, take a long time, cost a lot of money and make some recommendations”, indicating appropriate actions are already being taken.
What does this mean if you’re invested in Aussie bank shares?
Chances are you have some investments in Australian bank shares – either directly or through your superannuation fund.
Long, drawn out processes (like royal commissions) distract management from growing value for shareholders, and we know stock markets hate uncertainty.
If some sort of inquiry is conducted, there’s a possibility new laws and regulations will arise to restrict Aussie bank’s activities in the future.
All of this is very bad news for shareholders.
What does this mean if you’ve invested money with AtlasTrend?
AtlasTrend’s managed funds have no direct investments in any Australian bank stocks, nor do we have any intention to invest in them. However, we are a competitor for some Aussie banks with investment management arms.
So thank you for choosing to invest with a fintech. In the long term, we believe fintechs will help create more positive change in the banking and investment industries than any single inquiry or royal commission.
It comes down to prioritising the customer experience over simply trying to enrich shareholders. Help us spread the word about fintechs so it becomes the norm for people to choose innovative services over traditional ones.
For more about the types of managed funds AtlasTrend provides, click here. Sign up for full details on what the Trends invest in, and access actionable investing insights.
