DelphiNews September 2018
I’m pleased to enclose the September edition of DelphiNews.
Market Update
Trade tensions between the US and China are still a source of significant uncertainty for financial markets.
Political risks and trade uncertainty have seen a vicious cycle of selling in emerging market currencies as investors react to contagion fears.
US shares rose in August on the back of positive company earnings results, while European economic data was soft.
Australia recorded GDP growth of 3.4% year-on-year—the fastest rate since 2012 during the height of the mining boom.
On the Brexit front, the biggest stumbling blocks remain the Irish border plan and the UK’s post-exit trade relationship with the EU
Economic Update
Which key events have been driving markets? Watch this video of Senior Economist Bob Cunneen in discussion with Portfolio Specialist, Sinead Rafferty.
They discuss:
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latest market movements across the world
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volatility in emerging markets, and
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the fall in the value of the Australian dollar vs the US dollar.
Wall Street's Sentiment is all "trumped up" again
Senior Economist Bob Cunneen provides his Chart of the Week below and comments on Wall Street's record highs.
Wall Street achieved record highs last week for the benchmark S&P 500 Index (black line). This extraordinary rally has seen the US share market more than quadruple in price since the lows of March 2009. A pantheon of positives are cited as supporting US shares - the strong US economy, moderate wages and inflation pressures, gradual interest rate rises and the corporate tax cuts. Given these favourable tailwinds, corporate profits have surged by a remarkable 25% over the past year to June 2018 (according to Factset).
The Twilight Zone with Trump, Trade Wars and Turkey
The calendar year is coming to a close but some markets are struggling to make the finish line in good shape. We’re in a twilight zone where Trump, trade wars and countries like China and Turkey could present risks to Australian investors over coming months. These are important to be aware of, even though the future is beyond prediction.
Family Time
It is obviously important in life to ensure your finances are in order and that you have a plan for an enjoyable retirement. However equally essential is to enjoy all that life has to offer and to get to spend some quality time with family and friends. My wife, Bernadette and I had such an occasion earlier this month with the marriage of our eldest daughter Nikki to Dean. The NSW Southern Highlands was a bit on the cool side for an outdoor ceremony but the reception inside the Robertson Hotel by the open fires was a wonderful celebration.
Please contact us if you have any questions regarding these articles or to discuss your financial requirements.
Regards
Vince Dore CFP
Director
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