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No Grizzly Bears in This Market

An article by Shane Oliver; Share markets remained under pressure last week but I remain of the view it’s unlikely we’re sliding into a grizzly bear market as conditions aren’t in place for recession in the US, globally or Australia US shares fell 3.8%, Eurozone shares lost 1.6%, Japanese shares fell 0.2%, Chinese shares fell 3.5% and Australian shares declined 0.3%. Reflecting the “risk off” tone bond yields fell, credit spreads widened and commodity prices fell, with the oil price down another 11% over the last week, leaving it down 34% from its high in early October. The $US rose slightly and this weighed on the $A. Shares retesting October lows – double bottom or resumption of the slump? Share markets fell back to around their October lows over the last week. A retest of the lows is quite normal after the sort of fall we saw in October. Whether markets form a double bottom and head back up or [...]

By |2019-03-12T11:25:38+10:00December 6th, 2018|Market News, Tips and Other News|0 Comments

The October Share Market Scare

Share Markets Fell sharply in October, led lower by the technology-heavy NASDAQ index in the US. Many major market indices are now in negative territory for the calendar year. A notable feature of market behaviour through October was that Bond markets also came under downward pressure. Diversifying into bonds turned out to be a less effective tool in mitigating volatility than in it has been over the last 5 years. Defensive diversified funds with a large commitment to bond markets experienced a disproportionately large increase in realised volatility. This article seeks to provide an explanation for the downturn and address the outlook for share markets. The main points are: The fall in equity markets appears to have been triggered by a sharp rise in US bond yields; It’s a feature of share markets these days that when they fall, they fall sharply; While the rise in bond yields was driven by growing confidence that US economic activity is likely [...]

By |2019-03-12T11:25:38+10:00November 29th, 2018|Market News|0 Comments

Superannuation Reform – Downsizing

Superannuation Reform; Downsizing - What does it mean for you? Downsizer superannuation contribution has arrived from 1 July 2018 which means that if you are 65 years or older you can choose to make a downsizer contribution into your superannuation of up to $300,000 each from the proceeds of selling the primary residence (your home) without having to satisfy the work test. Your downsizer contribution is not a non-concessional contribution and will not count towards your contributions caps. The downsizer contribution can still be made even if you have a total super balance greater than $1.6 million. You can only make downsizing contributions for the sale of one home. You can't access it again for the sale of a second home. Downsizer contributions are not tax deductible This is an opportunity for clients who do not qualify for the Age Pension because it does not count towards the individual total super balance cap $1.6 million but it will still count towards the [...]

By |2019-03-12T11:25:38+10:00August 6th, 2018|Market News, Tips and Other News|0 Comments

Fall in house prices is ‘quite a bit larger’ than expected says ANZ

ANZ Bank has warned the pace of decline in Australia's house prices is "quite a bit larger" than expected, and likely to last longer than it previously forecast. With national auction clearance rates at a five-year low, ANZ senior economist Daniel Gradwell predicted in a research note published on Wednesday that further weakness was in store for the housing market, before it would start stabilising later this year. Mr Gradwell pointed to recent figures showing that the rate of price decline had accelerated in Sydney. The weakness was also affecting Melbourne amid a slump in national auction clearance rates and a tightening in credit availability. ANZ is now revising these forecasts. Mr Gradwell said the bank had previously expected the market would have "stabilised" by now, based on higher auction clearance rates at the start of this year. It had expected prices would finish 2018 slightly higher in annual terms. ANZ is now revising these forecasts The national auction [...]

By |2019-03-12T11:25:38+10:00June 8th, 2018|Market News|0 Comments

Brexit Market Watch – The Economy and Financial Markets

Britain has voted to ‘Leave’ the European Union (EU) 52 – 48 per cent. But the debate about the implications for economies and financial markets is just beginning. The magnitude of the impact on markets and economies is open to debate. The likely rolling series of “shocks” are expected to be financial, political and economic. The UK will be most affected. But Europe (and the rest of the world) will not emerge unscathed. A financial shock Volatility has risen in the wake of the Brexit decision. Currency volatility can be seen in the Pound, US dollar and Australian dollar. We anticipate it will take up to another week before currency volatility settles down. […]

By |2019-03-12T11:25:39+10:00July 19th, 2016|Market News|0 Comments

Brexit Watch – Search for Stability

In the wake of Brexit, PIMCO recorded a conversation with Gordon Brown, former UK Prime Minister and Chancellor of the Exchequer, now member of PIMCO’s Global Advisory Board, and Andrew Balls, CIO Global Fixed Income, on the challenges facing the UK following its historic referendum to leave the EU. The discussion offers perspectives on Brexit’s global economic impact and implications for investors. This call was recorded on 5 July 2016 and the recording is delivered by streaming audio.

By |2019-03-12T11:25:39+10:00July 14th, 2016|Market News|0 Comments

“Andrew Bolt is wrong on the economy and the budget”

By Peter Switzer One of my nightly commitments after I finish my TV show at 8pm is to listen to my colleague Steve Price and his sidekick Andrew Bolt on 2GB, 4BC, 3AW and a host of stations around the country. When politics heats up, like it did last night, with the Senate bringing on a double dissolution expectation, it’s always instructive to hear the thoughts of one of the country’s most right-wing thinkers. Andrew is also set to have his own show on the Sky News Channel, so he’ll be a colleague of mine there too, so it makes me want to ask: “Whose giving him his economic briefings?” They’re way off beam, way too negative and it means he was telling his radio audience that the upcoming Budget will be all bad news. He thinks there’s no money as well so he can’t see any scope for positives to come out of Scott Morrison’s mouth on May 3, [...]

By |2019-03-12T11:25:39+10:00April 29th, 2016|Market News|0 Comments

Market Highlights March 2016

Central banks back in action Concerns of a sharp deterioration in global growth eased back following three major announcements by central banks in March. 1. The European Central Bank (ECB) –increased the monthly size of asset purchases by €20bn and extended the coverage of these purchases to investment grade non-bank corporate paper. This has significantly reduced risks in the European banking sector, a large holder of these securities. With the ECB now buying up these securities and providing cheap funding to banks, the risk of a more significant slowing in euro zone growth, via a sharp reduction in bank lending, has been greatly reduced. […]

By |2019-03-12T11:25:39+10:00April 29th, 2016|Market News|0 Comments