We look at investing in consumer brands and the long read focuses on gold.

We look at the mixed company results so far this reporting season and in the long-read the Influence of the U.S. Federal Reserve on Global Markets.

History points to a positive 2024. ​

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Read more on the 'January Barometer' and the growing investment in India. 

December continued the strong momentum in the markets.

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Can it continue in 2024?

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Plenty of headwinds remain, but are we starting to see the sun come through the clouds?

The long read focuses on the affect high rates historically have on growth.

In this edition of our newsletter we look at the power contest between the USA and China and the impact of current world conflicts.

The long read focuses on the era of tight credit here to stay.

In this edition of our newsletter we look at the consequence of persistent inflation and the long read focuses on the opportunities arising from the technological advancements of the past decades.

In this edition of our newsletter, we invite you to embrace the spirit of renewal and regrowth with us. As we dust off the cobwebs and open our doors and windows for that long-awaited spring cleaning, we encourage you to apply the same rejuvenation to your financial well-being.

This month's long read focuses on the global phenomenon of aging populations posing significant challenges to countries around the world and how Australia is positioned.

Both Michelle Bullock, who will assume the role of governor in September, and the departing governor Philip Lowe seem to be accepting the possibility of higher inflation persisting for an extended period while prioritizing robust employment.

As the world seeks to reduce its carbon footprint and mitigate the impacts of climate change, the demand for renewable energy sources and electric vehicles has skyrocketed. Read more on the essential element in the global clean energy transition.

IN THIS ISSUE

• Why An Emergency Fund Delivers Peace Of Mind

• How Do Interest Rates Affect Your Investments?

• How To Get Super Ready For EOFY

In the coming months, investors are expected to shift their focus from seeking growth in revenue and share prices to concerns regarding the profitability of the companies in which they invest.

Inflation continues to be the most significant topic occupying the minds of anyone who has a dollar to spend or invest, and borrow. 

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The good news is that inflation looks to have peaked for now. We all look forward inflation stepping down in the months ahead.

Global markets have been gripped by the news of the two US regional banks that have failed and a possibility of a major European bank teetering on the brink.

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Read more to get a wider perspective, feel settled, and optimistic about staying the course of your investment plan.

Just when we thought rates when thought rates were  peaking - Phillip Lowe tells us he has other ideas.

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We all look forward to returning a more normal market, where bad news doesn't cause a market rally, and good news really is good news.

2022 was the toughest year for the markets since the GFC.

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We are all hoping that interest rates will soon stabilise and provide some optimism that 2023 can be  the start of some positive momentum.

WHAT A YEAR

The year 2022 is almost past us and what a year it has been! There have been hot & cold wars, surging inflation, interest rate increases not experienced in over forty years and to say that people feel financially vulnerable heading into next year would be an understatement.

What is driving the current market rally & will it last?

The market has concluded that inflation has peaked and the only way forward for inflation is down. The rate of inflation in the US actually peaked back in June at 9.1% and has since gradually declined to 7.7%. The aggressive interest rate increases in the US, from 0% to 4% over six months, appear to be bringing inflation under control.

Is the market correct?

STEER THROUGH THE TURMOIL -Investors who take a long-term view, remaining calm during the market’s ups and downs, will reap the reward.

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This month we take a look at oil prices in a world where climate action is becoming more mainstream.

Rates keep rising, with another 0.50% rate pushed through and more expected to follow.

Will the Reserve Bank too far or will wage increases help keep affordability at levels that can stop the Australian economy from a recession?

Staying the course isn’t easy for investors, especially when there’s so much happening in the world.

But by looking at how markets have performed over time, we can put the current market situation into context and appreciate how our investments can grow over the long term.

As the 2022 Vanguard Index Chart shows, while markets do fluctuate, asset values have steadily increased over the last 30 years.

Slowing not stalling - The Australian economy continues to flash amber light, indicating that the general level of economic activity across the nation continues to slow with businesses and consumers feeling nervous. 

However, most seasoned forecasters are not predicting a recession... 

Will there be a recession soon? 

The share market is forward looking they say, it is a pretty good predictor of the future economic activity. Why is that the case you might ask?

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Well, there are thousands of profit-seeking and well researched investors and economists investing daily in the market with real money. Their collective opinion of the future economic conditions is reflected in the direction of the share market movements in the short term.

The month of May was a busy one with both political and economic news. 

The month started with the Reserve bank of Australia (RBA) lifting its official interest rate by 0.25% from the historic low of 0.1% (basically zero %).

The official interest rate now sits at 0.35% and the expectation is that by this time next year this same rate will be 3.3% p.a.

The past four weeks have been very much about investors’ concern over the outlook for inflation (cost of living) and how much interest rates will rise in the near term.

We saw Australia’s central bank (RBA) raise its interest rate last week to 0.35% and Federal Reserve in the US do the same but a little harder than the RBA.

This year’s Federal Budget covers a range of measures aiming to reduce the pressure from increased costs of living and help more people into homes.

Click the link to see how you might be effected. 

Let’s commence this month’s letter on a positive note with Australian share market now decisively in the green territory. Considering much macro uncertainty, the investment returns are nothing short of impressive at 10.4% for twelve months to 31 March 2022; six months return at 2.3%; and one month return of 6.4%. In fact, the share market is a mere 2% short of reclaiming the historic high it reached in August last year.

The month of February was a busy period of news and events for the market. And, frankly, after all said and done the Australian share market held up reasonably well given some of the news coming from overseas, specifically the news on Russia & Ukraine war and consequently soaring prices of not just oil, coal, and gas but across the full commodities’ complex.  

World and local equity markets have started 2022 badly, as valuations in some expensive sectors such as tech unravelled, triggering a wider sell-off in equities as a whole, against a background of rising interest rates and ongoing uncertainties about the short- and medium-term impacts of the pandemic.

This year QBE celebrate 20 years of delivering insights into the housing market through the Australian Housing Outlook report. The report, authored by BIS Oxford Economics and sponsored by QBE Lenders' Mortgage Insurance, deep dives into property market dynamics during this extraordinary time and forecasts where prices are headed over the next three years.

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These are truly transformative times. The way we live and work continues to evolve as the COVID-19 pandemic creates opportunities as well as challenges, whilst changing our mindsets and priorities.

IN THIS ISSUE

• What will Australia look like in 2060?

• The economic impacts of lockdowns

• Mortgage or superannuation?

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IN THIS ISSUE

• Protecting Families from ‘Health Poverty’

• Retirement Village or Lifestyle Resort – what is the difference?

• Has Peak Inflation Arrived?