DelphiNews January 2018

Welocme to 2018!

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

Market Update

As was strongly anticipated by the market, the US Fed lifted the funds rate to 1.5% in mid-December.

The US economy appears to be operating near capacity, with an unemployment rate of just 4.1% and an underemployment rate of 8% – the lowest since 2006.

The recovery in Europe continues to defy expectations, with no sign of confidence diminishing despite political uncertainty in Germany and Spain.

The Chinese economy has also exceeded expectations in 2017, expanding by just under 7% in the first three quarters.

The Australian economy is being impacted by weak wages growth, but December saw an encouraging jump in consumer sentiment.

Economic and Market Update - Infographic

Take a visual tour of markets during December here. The Australian dollar rebounded strongly given higher commodity prices, and there were solid gains in global shares in December.

The Year in Review

2017 was a very positive year for investors, particularly those with substantial exposure to shares. Growth across the global economy was more synchronised than for some time due to a recovery in the eurozone, promising signs of improvement in Japan’s economy and solid conditions in the US and China. All of these strongly supported share markets in both the developed and emerging world. See full Review below.

Four Issues for Investors to keep on the radar in 2018

Senior Economist Bob Cunneen notes that 2017 was a year of surprises and shocks. This year is likely to bring its own remarkable events in economics and politics. So rather than trying to predict precisely the twists and turns of the future, here are four broad issues that investors should keep on the radar in 2018.

Your Rights when it comes to Direct Debits

Direct debits can help you organise your finances. The article below will help you understand how they work and what to do if you want to cancel them.

Who can you trust?

Trust can be tested in many ways.

Consider this situation. You are sitting at a conference with 1000 or so industry colleagues – effectively professional strangers – and you are asked to unlock your mobile phone and hand it to the person sitting next to you. They have 30 seconds to do whatever they like with it... Read below if you would like to know more!

Regards

Vince Dore CFP
Director