Tag: Financial Planning Brisbane

The US election and investment markets, including implications for Australia

November 7, 2016

Key points

  • The smoothest outcome for investors from next Tuesday’s US election would be a Clinton victory but with the Republicans continuing to control the House of Representatives, ie, “more of the same”.
  • However, news of the FBI’s renewed examination of Clinton’s emails means the election outcome is back to being close. While some of Trump’s economic policies could provide a fiscal and supply side stimulus to the US economy, a Trump victory is likely to be initially negative for shares and favour safe havens like bonds and the US dollar as investors would fear his policies on trade in particular. This would be negative for Australian and Asian shares and for the growth sensitive $A.
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Super-size your savings for retirement

June 14, 2016

While the rules and legislation associated with superannuation may change from time to time, it is still among the most effective retirement strategies, and for many Australians superannuation is their main form of retirement income. 

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The plunging oil price – why and what it means

February 2, 2016
  • Oil prices are down more than 70% from their levels two years ago driven by a combination of a surge in supply relative to demand and a rise in the value of the $US.
  • Further weakness down to $US20/barrel is possible, but we are getting closer to the point where supply slows.
  • So far the negative impact on oil producers has predominated but ultimately it will be positive for growth.
  • The fall in petrol prices is saving the average Australian household around $14 a week versus two years ago.
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Review of 2015, outlook for 2016 – more of the same

December 8, 2015
  • 2015 has been a messy year for investors as worries about China, emerging countries and the Fed caused volatility and uneven returns across asset classes. Australian shares continued to underperform.
  • 2016 is likely to see continued okay but uneven global growth, low inflation & easy monetary conditions. While the US is likely to raise rates gradually, other countries including Australia remain biased to further easing.
  • Most growth assets, including shares are likely to trend higher, resulting in reasonable returns. But volatility is likely to remain high as the easy gains are well and truly behind us.
  • The main things to keep an eye on are the Fed, China and the ongoing rebalancing of the Australian economy.
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The perils for investors of too much information in the app age

November 26, 2015
  • The more we are exposed to information about how our investments are performing, the greater the risk that we will be disappointed and at risk of making poor short term investment decisions.
  • The greater access to information around short term investment performance and the ever present worry list around investing via traditional media and increasingly from apps on our phones is likely accentuating this risk.
  • The key is to turn down the volume on financial news and find ways to filter it such that it doesn’t distort investment decisions.
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Wealthy retirees to be hit hardest by the pension changes

November 18, 2015

Retirees and those nearing retirement with large superannuation balances and other assets and investments will likely be affected by new pension asset test changes, which passed Parliament on 22 June, 2015.

Liberum Financial, advise that under the new legislation, wealthy couples who own their own home and have over $823,000 in assets (not including the family home) will see their pension entitlements reduced or cut entirely.

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