Market Update: March 2020

Coronavirus concerns continued to dominate markets through March, causing unprecedented volatility in investment markets. The far reaching economic consequences have effectively wiped out all of the progress made over the last three years. We summarise the main indices as at the end of March below which have now turned to a sea of red: In addition to the above, the …

Market Update: March 2020

To say it has been a volatile month in markets would be an understatement. From their recent highs to recent lows US shares have fallen 13%, Eurozone shares have lost 16%, Japanese shares have fallen 14% and Australian shares have lost 13%. Emergency central bank intervention saw bond yields plunge to new record lows in the US and Australia. Commodity …

Market Update: January 2020

Welcome to the first Market Update for 2020! Australian shares sold off in December, ending 2019 on a sour note for what was otherwise a stellar year for equities. The S&P/ASX 200 Index returned 23.4% over 2019, with the strongest performance coming from the Health Care sector (+43.5%) and the IT sector (+33.5%). Interestingly, the Consumer Discretionary sector (+32.4%) pushed …

Market Update: December 2019

Share markets generally rose higher in November, helped by optimism regarding a US/China trade deal and reasonable economic data. Both US and Australian markets hit record highs, which brings 12-month returns for Australian equities up to a whopping 26%, as summarised below: At the time of writing, it looks like it will be an excellent calendar year for 2019. If …

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 …