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DelphiNews November 2016

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

Market Update

In another relatively uneventful month for economic data, investor attention was directed at rising interest rates and bond yields and election uncertainty in the United States.  Economic indicators were on the whole relatively good showing that the global economy continues to expand at a moderating pace.

In October equity and bond markets were both a little weaker as investors worried about higher US interest rates and the outcome of the US elections.

Crude oil prices were about 3% weaker as oil producer nations failed to agree to production cuts.

Chinese economic data was relatively good helped by infrastructure and housing construction activity.

The US economy continues to grow moderately with some evidence that wages growth is picking up.

The Eurozone economy continues to grow in line with long term trend rates and business sentiment in both the manufacturing and services sectors has improved.

Meanwhile Australia’s economy is still somewhat mixed with softness in retail spending and low inflation but the recent lift in iron ore and coal prices should help provide support into 2017.

Economic Update

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

He discusses:

  • the softer performance of global shares

  • how the prospect for higher US interest rates and a close Presidential election caused US shares to fall, and

  • how our inflation rate picked up speed, casting doubt on further RBA interest rate cuts and adversely impacting Australian shares

Rethink Success

I'm pleased to share with you part 1 of NAB's latest whitepaper: Rethink Success.

This research explores what 'success' looks like for 2,000 Australians aged 16-70 years, and considers the importance and relevance of quantitative measures of success such as wealth, status and home ownership against qualitative factors such as experience, personal fulfilment and wellbeing.

Key insights

  • Australians rank happiness as the top measure of success
  • There is a disconnect between what Australians value personally, and what we think society values
  • Success is a work in progress, with 71% believing they're still working towards achieving it

This research also highlights the value Australians place on the experiences money enables them to have such as feeling financially secure, travelling overseas and buying a house.

The President Elect

I have previously sent you a note regarding the election of Donald Trump to the American Presidency. NAB & MLC have provided further insights into how this may affect markets. Please contact us if you would like a copy of this additional commentary.

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

 

Regards

Vince Dore CFP
Director