News & Articles

Market Outlook 2016

Overall We are still looking for moderate growth in the US, the European recovery is gathering pace and Japan is gradually improving. Emerging economies remain under pressure and the China slowdown has further to run.USIn the US, we may see a rate rise before long and a higher US 10 year Treasury yield over the next 12 months. A forecast of 2.5% US GDP growth is not unreasonable, although the upside for US equities may slow with lower corporate p..... Read more

What’s in store for global equities?

Outlook for 2016 2016 promises to be a better year for equities than 2015, a year where markets were shaken by weaker growth in emerging markets. The outlook for economic growth in 2016, particularly in the developed world, is much healthier than at the start of 2015, which should be positive for equity markets, including the US. Global growth still remains somewhat fragile with trade and manufacturing activity sluggish. Looking Back During 2015 ..... Read more

Retiring from small business

Selling a small business can be a challenging and complicated. So too can retiring. So plan Early.There are a range of things that may need to be addressed early on with the assistance of your accountant or solicitor.Key examples include:ensuring the financial accounts are in orderobtaining a valuation of the businessdetermining the potential tax implications if the business is soldconsidering whether the business should be restructured before th..... Read more

Inflation Remains Low

Australian inflation increased a little above market expectations in the December quarter despite the sharp falls in petrol prices. The annualised rate rose to 1.7%, but still sits below the RBA’s target band of 2–3% p.a.Headline CPI rose 0.4% quarter on quarter to 1.7% p.a. in the December quarter up from 1.5% for the previous three-month period. The corresponding underlying measure of inflation averaged 2% year on year.While the December quarte..... Read more

​What should investors be thinking?

Times like the present can be concerning as no one likes to see the value of their investments decline.The malaise affecting equity markets and risk assets generally has shown no let up with Australian shares slipping into bear market territory (defined as a 20% or greater decline from the most recent high).From their highs last year to their latest lows, US shares have fallen 13%, Australian shares -20%, Japanese shares -25%, European shares -26..... Read more

The Current State of Play

Two issues with Australian housing are that it is expensive and household debt is high. According to the 2016 Demographia Housing Affordability Survey, the median multiple of house prices (in cities with over 1 million people) to household income is 6.4 times in Australia versus 3.7 in the US and 4.6 in the UK. In Sydney it’s 12.2 times and Melbourne is 9.7 times.We see the boom in Sydney and Melbourne is slowing largely due to APRA’s measures to..... Read more

Australian Equity Market

A Few Good MonthsThe Australian equity market has enjoyed a few good months, though once again it is now facing valuations challenges. Irrespective of how the market deals with this challenge, income returns from the market remain very attractive relative to interest rates. Given that local interest rates could fall even further in coming months, this suggests that the high yield equity theme is likely to perform relatively well in most market co..... Read more

​Global Market Outlook

Global Market OutlookRisk markets strengthened further as at last month, helped by a rise in oil prices this year, signs of a Q2 rebound in US economic growth and growing acceptance to the fact the Federal Reserve may raise US interest rates.World equities (ex-Australia) in local currency terms rose 1.7%. Australian equities outperformed on a local currency basis with a 3.1% gain, helped by the RBA’s rate cut and an associated weakening in the $A..... Read more

Property Values

Performance & GrowthThe performance of individual capital cities remains somewhat diverse. Sydney and Melbourne continue to record much stronger annual growth rates, while the rest of the cities are seeing relatively slow growth or minor value falls.It is important to note that the rate of growth in Sydney and Melbourne is slowing. Considering the large weighting applied to Sydney and Melbourne within the combined capitals index (due to the l..... Read more

Brexit Effect on Financial Markets

UncertaintyThe British referendum to quit the European Union sparked a wave of uncertainty on financial markets around the world and triggered a huge sell off of shares.For most of this year, international investors held an underweight position in UK equities as compared by the benchmarks against which they track their performance. Recently, the top-performing quartile of global funds had moved to a neutral & overweight positions.Prior to the..... Read more