DelphiNews February 2016

I’m pleased to enclose the latest edition of DelphiNews.

Investment Outlook for 2016

As 2016 gets underway, with a reminder that risk assets are called that for a reason, Macquarie Investment Management have summarised the outcomes of 2015 and set out their investment experts’ thoughts on the key themes for the year ahead in the enclosed Investment Outlook.

Will the significant market volatility experienced at the start of the year continue, or will January prove to be a hiccup from New Year?

Whatever the outcomes, 2016 is likely to see the continued interplay between central banks and markets, suggesting volatility will be a key theme of the year. In this environment it is important investors remain focussed on the risks they are taking and the rewards they expect to receive.

Market Update

Global equity markets were sharply lower in January, with oil price volatility the dominate reason for global uncertainty.

US economic data was mixed but remains resilient, whilst the Bank of Japan introduced negative interest rates to provide economic stimulus.

In the Eurozone economic activity showed continued improvement whilst China economic data was marginally weaker – but there are signs of stabilisation emerging.

Back home there’s been an improvement in the economy as business credit growth continues to improve and the Reserve Bank retained the cash rate at 2.0% at the February meeting.

Economic Update

In the latest Economic Update, John Owen Portfolio Specialist at MLC, reviews events in Australian and Overseas markets during January. John notes that 2016 began with considerable market volatility.

A number of factors caused markets to fall in January with developments in China a recurrent theme. John states that we remain in an uncertain environment and that MLC believe a cautious approach is warranted.

Focussing on After-Tax Returns

Investors who focus mainly on pre-tax returns may gain a misleading impression of their real investment performance. And, in turn, they may not give enough attention to trying to keep their tax costs - along with their other investment costs - to a minimum.

Please contact us if you have any questions regarding your financial requirements or this month's articles.

Regards

Vince Dore CFP
Director

Vince Dore and Delphi Financial Management Pty. Ltd are Authorised Representatives of GWM Adviser Services Limited ABN 96 002 071 749, trading as Garvan Financial Planning/MLC Financial Planning an Australian Financial Services Licensee, Registered office at 105 –153 Miller St North Sydney NSW 2060 and a member of the National Australia group of companies.

This advice may not be suitable to you because it contains general advice that has not been tailored to your personal circumstances. Please seek personal financial and tax and/or legal advice prior to acting on this information. The material contained in this newsletter is based on information received in good faith from sources within the market, and on our understanding of legislation and Government press releases at the date of publication, which are believed to be reliable and accurate. Opinions constitute our judgement at the time of issue and are subject to change. Neither, the Licensee or any of the National Australia group of companies, nor their employees or directors give any warranty of accuracy, nor accept any responsibility for errors or omissions in this email.

Level 7, 60 Carrington Street, Sydney, NSW 2000
1300 167 826

Unsubscribe