DelphiNews May 2019

I'm pleased to enclose the May edition of DelphiNews.

Market Update

• The US labour market continues to tighten but the Fed is concerned that a cycle of perpetually low inflation expectations could reduce monetary policy flexibility.

•  Sentiment in Europe continues to deteriorate, with inflation softening in April and the manufacturing sector in contraction. 

•  Despite zero growth in the CPI for the March quarter, the RBA opted to hold the cash rate at 1.50%, possibly preferring to remain on the sidelines during the election campaign.

• The UK has negotiated a Brexit reprieve, moving the deadline back to 31 October, meaning it will participate in European Parliament elections on 23 May. 

•  China’s March quarter GDP growth exceeded expectations, while investment spending has stabilised after falling through 2018.

Economic Update

Which key events have been driving markets during the past month? Watch this video of Senior Economist Bob Cunneen in discussion with Portfolio Specialist, Sinead Rafferty to get an overview.

Chart of the week: Should the Reserve Bank cut interest rates to support Australia's economic growth?

Senior Economist Bob Cunneen discusses the recent conflicting and confusing evidence on Australia’s economic growth performance.

Plan ahead for the aged care you want, for your parents

Helping parents (and sometimes yourself) make the transition into supported living can be challenging, but forward planning and open communication can help everyone. Below are some things to consider.

Estate Planning: What your Will doesn't cover

Most of us think of estate planning as simply writing a will. However, ensuring your assets are distributed according to your exact wishes after you pass away can be more complicated than that as the following article explains.

Regards

Vince Dore CFP
Director