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DelphiNews January 2017

Welcome to the first edition of DelphiNews for 2017.

Market Update

In December global equity markets continued to make new highs as investors factored in stronger economic growth and higher corporate earnings in the United States following the US election in November.

Oil prices rose 8.7% to US$53.75 per barrel (WTI) following the agreement by OPEC and several non-OPEC oil producing countries to cut production in 2017.

The US ISM manufacturing index rose to the highest levels in two years.

The US Federal Reserve increased its Federal Funds rate from 0.50% to 0.75% and indicated that it expects to raise interest rates a further three times in 2017.

Chinese economic activity indicators were stronger than expected.

Australia’s economy has been somewhat mixed with the unemployment rate rising from 5.6% to 5.7% and the government revised its economic forecasts to show marginally larger budget deficits over the next few years.

Economic Update

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

He observes that global shares made strong gains in December as US shares surged to record highs. President-elect Donald Trump’s ambitious economic stimulus program is seen as positive by markets despite the lack of policy detail.

In Australia, our economic activity was mixed. We recorded a rare contraction in activity in the September quarter with real GDP declining by 0.5%. This was countered by solid job gains, stronger retail sales and a stable National Australia Bank business survey. This suggests that our weak GDP result should only be a temporary growth setback. Click on the following link to read the full December Economic Update.

Recent Super changes at a glance

The graphic below provides an overview of the changes to Super and Pension arrangements due to commence on 1 July 2017.

Please contact us if you have any questions regarding these changes to superannuation or to discuss your financial requirements.

Regards

Vince Dore CFP
Director

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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.

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