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DelphiNews March 2014

I’m pleased to enclose the March 2014 edition of Market Update.

The global economies are continuing to show more synchronised growth in February despite weaker manufacturing and export data out of China.

The US is showing positive signs that the economic slowdown from the severe weather conditions is subsiding and that a return to improved growth is on track.

The Eurozone economic data indicates a broader recovery is occurring, albeit significantly below trend growth rates.

China manufacturing and export data in February was weaker than expected but a significant emphasis is placed on the impact from the seasonal Lunar New Year holiday period. China has targeted a 7.5% growth rate in 2014, as the economy continues its rebalancing process.

On the home front, house prices steadied over the past month, with an average price increase of 1.12% in 2014. While the RBA has kept rates on hold in March, the prospect of house prices stabilising, the impact from higher unemployment in the near term, and uncertainties over the sustainability of the non-mining sector growth, gives the RBA the flexibility to lower rates if necessary.

In the Economic Update, Ben McCaw, Portfolio Manager at MLC Investment Management, reviews events in Australian and Overseas markets during February. Ben observes that the seemingly steady economic progress since, say, the US debt ceiling risk-escalation in October 2013 combined with low yield environment, has engendered a sense of complacency in global markets and pushed prices higher.

Finally, the article below covers the 3 Stages of Retirement. Australians are living longer than ever before. So it’s important to be financially ready for retirement — and the changes to your lifestyle along the way.

Please contact us if you would like to review your financial position to ensure that your long term plans are achievable.

If you have any questions regarding the information contained in this edition of DelphiNews or if you or a family member would like to review your current investment strategy please call us on 1300 167 826.

 

Regards

Vince Dore

Vince Dore CFP

Director