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Here’s what you need to know today

• For those who switched off over the long weekend, a recap of the biggest news over the weekend - the US has once again raised tariffs on Chinese imports. They now are at 245%. China’s Commerce Ministry responded by calling Trump’s move a “meaningless tariff numbers game” and have warned nations against “appeasing” the US in trade negotiations. (BBC)
  
  

• Early voting starts tomorrow in the Australian federal election. Yesterday, Peter Dutton pledged $750m to fight crime including a national sex offender register while Anthony Albanese faced criticism after the Sydney Morning Herald reported he overrode his minister and shelved a crackdown on gambling ads for fear of an election fight with media and sports bosses. (SMH)
  
  

• Recent data from the Australian Bureau of Statistics show the impact of insecure work and the cost-of-living crisis. 6.7% of Australians (or 1-in-15 people) now hold two or more jobs, with the problem most apparent in Tasmania where 8% (or 1-in-12 people) hold a second job. For context, between 1995 and 2019, the national rate hovered between 5% and 6%. (ABC News)
  
  

• The US Supreme Court and White House took another step towards a constitutional crisis after America’s highest court ordered the Trump Administration to halt plans to deport Venezuelan detainees being held in Texas. Now the world watches to see if the Trump Administration complies with that order. (ABC News)
  
  

• Protests against the Trump Administration took place across more than 400 cities in America over the weekend. The protests were organised by a group called 50501, which describes itself as “pro-democracy, pro-constitution, anti-executive overreach, nonviolent grassroots movement”. (NPR)
  
  

• In Ukraine, Russia proposed an Easter ceasefire, and then subsequently broke it. On Sunday morning, Ukraine detected around 60 shelling attacks from Russian forces. (ABC News)
  
  

• CEO of luxury giant LVMH, Bernard Arnault, called for European leaders to negotiate a tariff deal with the US and warned that if a trade deal couldn’t be worked out, he may move production to the US. Currently one-quarter of LVMH’s sales are in the US. (Quartz)
  
  

• CEO of pharmaceutical giant Eli Lilly, Dave Ricks, pledged to manufacture his company’s next generation weight-loss drug in America. Building on the success of injectable drugs Zepbound and Mounjaro, Eli Lilly has seen positive trial results with their once-a-day weight loss pill Orforglipron. (Quartz)
  
  

• US Secretary of Defence Pete Hegseth reportedly shared classified information about upcoming military strikes in a second Signal group chat. The report by the New York Times has 4 witnesses confirming Hegseth shared classified information in a group chat that included his wife and his brother. (NY Times)

What the…?

Since returning to power in January, President Trump has done a good job of annoying many parts of the world. Turns out that is starting to show up in America’s tourism numbers.

Overall, arrivals by non-citizens to the US by plane were down 11% year-on-year in March. Western Europe saw a 17% drop year-on-year but Canadians led the way, with visits down 32%. The US Travel Association has previously projected that a 10% drop in Canadian tourism could lead to a $2.1 billion loss to the US economy and put 140,000 hospitality jobs at risk. (Quartz)

Investing is a lifelong journey

Here’s what you can learn today.

Investing in property or investing in shares?

Community Question: What considerations should be made when deciding between investing in property versus shares for long-term wealth creation?

We put this question to Matt Ingram, Partner & Financial Adviser at Northhaven.

When you’re starting out and capital is limited, you may genuinely have to make a decision between shares and property. In doing so, you’d need to consider the argument for both.

The most common argument for property is leverage – the bank is willing to give you hundreds of thousands of dollars to invest into a property. This means that whatever return you earn is not only on what you put in, but also what the bank put in. This can amplify your returns (or losses).

However, property can be expensive, with stamp duty, management fees, and repairs and maintenance. Additionally, unless you’ve built a small property empire, you’ve put what is likely a large portion of your capital into a single asset that you’re betting will go up over time.

While it’s not quite as easy to leverage into shares (although there are ways to do it), shares come with the bonus of very low entry costs (free in some cases when there is zero brokerage) and the ability to easily diversify using ETFs.

For younger clients making this decision, the appeal of leverage is often enough to justify property investing. However, what they often forget is that they have tens or hundred of thousands of dollars already in shares – in their superannuation.

As they get older, the move from property to shares (especially in super) starts to make sense as it provides more liquidity to fund their lifestyle.

Questions you should consider when deciding where to invest:

• How much do I have to invest? Property typically requires large upfront amounts whereas you can invest in shares from as little as a few hundred dollars.

• Am I comfortable with the large amount of debt that comes with property investing? If not, a share portfolio (which can include exposure to property shares) might be the way to go.

• Can my cashflow support the ongoing costs of property investment? Consider if your property was vacant for a few weeks – could you cover the mortgage repayments?

• Am I investing for cash flow or capital growth? Most newly purchased investment properties are negatively geared, so they will actually be a drain on your cash flow. Meanwhile a share portfolio can provide dividends to boost your cash flow.

• What are the tax implications of each option? Negatively geared property may come with substantial tax deductions.

If you’re still unsure what’s right for you, a chat with a financial adviser who works with people similar to you is the best place to start.

Interested in speaking to Matt or being matched with one of our hand-picked financial advisers? Fill out the form on our website and we’ll put you in touch.

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Issued by FIL Responsible Entity (Australia) Limited, ABN 33 148 059 009, AFSL No. 409340. This is general information only and is not intended to be advice of any kind. Consider the PDS and TMD available at www.fidelity.com.au

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