The Impact Of Money Printing On Investors

We invited Nick Webb of RSM Financial Services Australia to share his thoughts on the impact of money printing on Investors 


Here’s what he said:

An important focus, for a physio clinic business, is to make sure you are getting a great utilisation from your team. This means the number of hours you are paying them to work, versus the number of hours they are in consultations with their clients. The focus is maximising the dollars that they are brining in the business, for the hours they are working and the salary that you are paying them.

How does QE, or money printing, and QT affects decision making about what assets to purchase?

There is so much money out there in the system. The official figure out of the US was in 2021, they printed essentially 40% of their total currency in circulation, so it becomes a big problem. That’s why we see so many of these inflationary spikes at the moment because people are spending like drunken sailors as there’s so much money that’s being printed. 

Ultimately, it very much goes and devalues currency. It’s about looking at different opportunities across the globe as well. So looking in some countries where they haven’t printed to the same extent as places such as the US.

In periods like we’re in at the moment, domestically, and in Australia, even though it is a shallow market, we’ve got a huge benefit from very high dividend or income-paying stocks. We’ve got the benefit of franking credits as well, which makes it nicer on the top line from a return perspective. 

When we’re looking at QE and tightening on the other side of the coin as well, it’s very much just taking a broader macro view as to what does that flow through to how is that really going to impact upon listed investment markets and other investments that clients will have in their portfolios, such as direct property or any unlisted investments that they have as well. 

But typically, jumping into that commodity space, for a lot of people, they like that because there’s a finite supply of things like gold and silver; whereas, when you turn the money printing press on, there’s an in infinite supply of currency. It’’s just weighing up the current state of affairs and where to from there.


The information contained in the video above is intended to be general in nature and is not personal financial product advice

If you’re keen to explore changing accountants, we have a non-obligation process to do that. The first step is booking a strategy call with one of our accounting team. It’s a free 20-minute zoom or phone call where you get to meet us to manage your questions. 

From that point, you can consider doing a “Look Under The Hood” with us. There is no obligation to change accountants, but we give you a second opinion if you’re paying too much tax. 

Throughout that process, we can identify any problems we see with your current setup. Anything that your current accountant hasn’t claimed, or tax you may have overpaid, and strategies of how we might fix that going forward. We can run through with you once you book with us. 

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