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DelphiNews August 2012

Welcome to the August edition of Delphi Financial Management's Newsletter.

I’m pleased to enclose the August 2012 edition of Market Update.

With many major global economies experiencing a slowdown this year, the International Monetary Fund revised the world growth outlook to 3.5% for the year. Growth forecasts for China and the US were also downgraded to 8% and 2% respectively.

The US economy continued to show signs of a slow recovery, while unemployment rates remained static at 8.2%. Quantitative easing (QE) was once again on the agenda; with Fed members keeping a close eye on economic momentum.

Over in Europe, while Spain continued to concern markets, the United Kingdom was also a key focus for investors during the month. The continual decline in GDP saw a further round of QE introduced in the UK.

On the home front, Australian markets hoped low inflation figures would encourage an interest rate cut. However at the 7 August meeting no rate cuts were announced by the RBA. In other local news, both retail sales and housing data were up for the month.

As markets continue to remain uncertain in the short term, please remember to remain focused on your long-term goals.

During periods of sharemarket volatility, many investors turn to the perceived safety of cash investments. The article below provides some insights into whether this is appropriate reaction.

Finally we look at the issues of Wills and Testamentary Trusts as part of your Estate Planning.

If you would like to review your investment strategy or discuss any of these articles please contact us.

 

Regards

Vince Dore

Director