Market Update: November 2019

Australian shares were in the red in October, dragged down by Information Technology (-3.9%) and Financials (-2.8%), with bank profit growth expected to be moderate due to constrained lending and interest margin pressures. Below we summarise the key indices as at the end of October: Following a strong performance in the September quarter, the outlook appears mixed across most sectors, …

Market Update: September 2019

There were jitters in equity markets in August but no quakes just yet as a brief inversion of the US yield curve triggered steep selling. This sentiment weighed heavily on Australian shares despite a generally positive earnings season, dropping 2.4% over the month with the Materials (-7.5%) and Energy (-5.6%) sectors hit the hardest. Below we summarise the key indices …

Market Update: August 2019

Equity markets lifted in July as trade negotiations between the US and China appeared to be heading in a positive direction and central banks all over the world stepped in to offer support to address ongoing economic uncertainty. At home, Consumer Staples led the way, up 9.8% on the back of Chinese-exposed baby formula producers A2 and Bellamy’s. Health Care …

Are you at risk of outliving your Superannuation?

Recently, you might’ve read a few articles about Australians outliving their superannuation. Many of the headlines have been a bit ‘doom and gloom’ citing Aussies will run out of super about 10 years before they die. And while that’s not a very pleasant thought, is that really the whole story? Let’s look behind the headlines and try to figure out …

Market Update: July 2019

It’s been another month of good news for Australians, with an additional rate cut by the RBA and tax cuts confirmed by Parliament. Markets have also played their part, delivering strong returns in the month of June as displayed below: The Australian share market is now just 0.3% below the resources boom high it reached on 1 November 2007, as …

Market Update: June 2019

Self-funded retirees rejoice! An election win by the Coalition means that there will be no changes to franking credit refunds on the horizon. The strong backlash against the Labor party’s proposed restrictions on franking credit refunds means this feature of the tax system will remain an important investment opportunity for income-seeking investors. We feel that no future government is likely …

Market Update: May 2019

Global equities were the standout asset class in April, with the domestic share market also performing well. Fears of a disappointing earnings reporting season in the US were not realised, helping the US market maintain its upward trajectory (although events in the past week may undo these gains). Australia delivered 2.4% in April, rising above 6,300 points on the back …

Market Update: March 2019

Equities continued their stellar run from the lows of early January, with Australian shares returning just shy of 6% for the month and 10.1% so far in 2019. February was primarily led by energy (+7.9%), IT (+7.6%) and financials (+9.1%) which was the real driver of returns. In price terms the market has now fully recovered since the start of …

Market Update: February 2019

Equities recovered well through January and have run hard and fast from their December lows. Australian shares posting a return of 3.87% in January, driven predominantly by Energy (+11.5%) and Information Technology (+9.3%). Resources were also quite strong, particularly late in the month where a disastrous dam collapse on Brazilian iron ore giant, Vale’s, operation which saw the tragic deaths …

Market Update: January 2019

Happy New Year! Investment markets have been on a bit of a rollercoaster ride over the holiday season, with Santa missing Christmas but arriving the day after. A US government shutdown drove US shares down 19.8% from its September highs, with the tech-heavy NASDAQ experiencing even heavier falls. For diversified investors, 2018 was a lost year with Balanced returns flat …