Share     Facebook icon Twitter icon Twitter icon

DelphiNews August 2016

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

Market Update

Following the sell-off in equities after the UK’s Brexit decision, equities staged a strong recovery in July, helped by expectations of more central bank stimulus measures in the major economies.

Crude oil prices fell 14% on renewed concerns about oversupply, whilst China economic data continued to show that the government stimulus measures are supporting the economy.

US economic data was somewhat mixed. June non-farm payrolls figures recovered from the very low reading in May but GDP growth in the second quarter was slower than expected.

Economic data out of Europe has continued to be fairly good with moderate economic growth but recent business and consumer surveys in the UK point to a sharp slowdown in activity in the coming months.

Australia’s economy is in reasonably good shape with consumers and businesses finding conditions reasonably good but weak inflation and wages growth have prompted the RBA to cut interest rates again to 1.50% in early August.

Economic Update

In this update, Bob Cunneen, Senior Economist and Porfolio Specialist, reviews events in markets during July.

He discusses:

  • July’s surprisingly strong global share gains

  • the global share markets being supported by better than expected US corporate profit reports and global economic data

  • how Japan’s share market rebounded in July given hope from both budget and monetary stimulus, and

  • how Australian shares rose by a robust 6.3% in July. Higher coal and iron ore prices helped the commodity market.


Benchmark Magazine

For those who are interested in a more indepth analysis please find below a link  to the latest edition of Benchmark magazine - Redefining investment strategy in a low growth environment.

Everywhere you look, the story is a similar one – it’s a low growth, low return environment, with expensive asset classes and distorted financial markets. This is true for both our own economy as well as globally.

This edition features an in-depth Q&A with MLC’s Chief Investment Officer Jonathan Armitage, and NAB Asset Management’s Senior Economist and Portfolio Specialist Bob Cunneen asks whether Australia is “turning Japanese”? A number of our investment managers also share their strategies and insights.

Download PDF version  (5.5 MB pdf file)

Infographic: The State of Play

Changing demographics, macroeconomic dynamics and capital market realities are reorienting the world for investors. The following Infographic provides a summary of the international State of Play.

 



Click to view full Infographic

How many of these domestic bucket-list places have you seen?

With so many desirable holiday spots across the country, prestigious travel magazine Conde Naste named Australia as the ‘Top Destination of 2016’. So if you’re planning a trip, it might be worth swapping your next overseas holiday for an adventure closer to home.

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

 

Regards

Vince Dore CFP
Director