July 2016 – Private Client Newsletter

In this issue:

  • Australian Growth – resilient in tough times
  • Wealth transfer is a family matter
  • Brexit – Implications for Australian investors
  • Self worth = Net worth – How to build confidence and change your financial direction

July is here along with the start of a new financial year as we await the results of the recent government election, but they are not the only new beginnings investors are taking stock of. The surprise British exit – or Brexit – from the European Union capped off a month and a year characterised by volatility and uncertainty.

Global currency and equity markets tumbled in the aftermath of the Brexit vote on June 23 as investors flocked to safe haven assets. Australia was not immune, with the ASX 200 finishing the year down around 6 per cent and the Australian dollar down 3 per cent against the US dollar at around US74c. Prices of oil and iron ore bounced around but finished the year down about 20 per cent as global growth stalled. Money flowed into gold, which surged above US$1300 an ounce, and bonds. As a result, Australian government 10-year bond yields fell below 2 per cent. It wasn’t all bad news though. Australia grew at a solid 3.1 per cent, the cash rate is at a low 1.75 per cent, inflation and unemployment are low and residential property rose an average of 10 per cent across capital cities. Consumer confidence reached a two-and- a-half- year high before falling in the final week due to uncertainty surrounding a Brexit. The ANZ/Roy Morgan consumer confidence rating fell 1.7 per cent in the week to June 26 to 116.8.

Australian Growth – resilient in tough times

‘Resilient’ is perhaps the best way to sum up Australia’s economic performance over the past 12 months. That was the word used by Standard and Poor’s director of sovereign ratings, Craig Michaels, when confirming Australia’s AAA credit rating in mid-June.  Australia’s strong performance is even more remarkable in a year characterised by ongoing uncertainty and … Read more

Wealth transfer is a family matter

It’s often said that it is better to give with a warm heart, but divesting assets while you are alive may not be the best way to pass on your accumulated wealth to your nearest and dearest.
Certainly giving when you are alive means you have more control over who gets what and you get to see them enjoy their inheritance. It also means your wishes are less likely to be contested after you … Read more

 

Brexit – Implications for Australian investors

The United Kingdom’s decision to leave the European Union has thrown global markets into turmoil in recent days. Given the result was the opposite of market expectations, the knee-jerk response was understandable, though likely overstated Brexit’s global (and hence Australian) impact.
Article sourced from BetaShares: <http://www.betasharesblog.com.au/brexit-implications-for-australian-investors; Accessed 3 July 2016>… Read more

Self worth = Net worth

How to build confidence and change your financial direction

At the start of the year, many people reassess their finances in preparation for the year ahead. This inevitably involves a review of income sources. For many people, this is a bit of a sore spot as it can cause doubt or regret about career choices… Read more

 

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