2015 has not been a good year for investors, no matter how they chose to make their investments – saving accounts, bank shares, or other ways. But here comes the great news: this year, the experts announce that the situation will improve compared to 2015.
Benefits for Investors in 2016?
Many Australians choose to open a saving account, because of the interest rates. But during the last year, interest rates have dramatically decreased. In fact, in 2015, deposit rates dropped by up to 0.91%. The experts haven’t provided a clear statement regarding the evolution of the deposit rates for this year, but they gave some pieces of advice. What are the recommendations regarding saving accounts for 2016? People are advised to choose smaller institutions, because these may provide them great deposit rates on specific terms, such as seven months’ term. Investors are also encouraged to choose wisely and compare the term deposit rates.
Bank shares may be quite unstable, but they have been one of the best methods of investment in the last years. Still, investors who chose to buy bank shares in 2015 may have experienced some financial problems, especially in the second half of the year. However, in the last weeks of the year, investors may have gained enough money to cover some of their initial lost.
For a quick overview of the evolution of bank shares in 2015, it is important to know that Westpac shares went down by 1%, the Commonwealth Bank by 2%, while ANZ and NAB suffered major losses: NAB shares went down by 11% and ANZ by 15%.
But if we take a closer look over the years, in the last six years bank shares proved to be one of the best choices of investments, as the dividends per share continued to grow. Since 2009 until now, the dividends experienced a remarkable boost of 80% in the case of Commonwealth Bank, and 60% in the case of NAB and Westpac.
What are the predictions for 2016? The CMC Markets suggest that this year will definitely be more profitable than 2015 for investors who have bank shares, even though the dividends will not experience the same growth as in the last years.
The competition in the market of property investing is still a safe one, but the experts say that the investment in the field of domestic propriety will be slowed down in 2016. The investors are advised to take into consideration the risks, such as a lower demand for home buildings, when they go for property investing.