Brian Redican is an Economist within Macquarie Research.
In this paper, Brian examines the Reserve Bank of Australia’s decision to cut interest rates
again following its December Board meeting and the impact this is likely to have on the economy in 2012.
Read here for more insights: Economic Commentary
Oliver’s Insights – China’s turn: 
This note provideed by AMP looks at the recent outbreak of worries about a hard landing in China. The key points are:
• Slowing exports, tight credit and a slowing property market suggest the risks regarding China have increased. Policy makers may also be slow to respond, resulting in further short-term uncertainty.
• However, so far there is no sign of a hard landing and while there are likely to be bouts of uncertainty, it is unlikely thanks to spending on social housing, solid consumer demand &and a likely easing in economic policy late this year or early next. But don’t expect a re-run of the 4 trillion Renminbi stimulus that was seen in 2008-09 as public debt is higher today and it was ultimately overkill anyway.
• Chinese shares are cheap, but require monetary easing before their fortunes turn decisively.
Read more here: Olivers-Insights – Chinas-turn
Russell Investments have provided the attached economic update, which I am pleased to share with you.
Update from EMEA overnight: Eurozone Crisis: Greece fears hit world markets.
John Velis, Head of Capital Markets Research, EMEA, provides his thoughts about
where the Eurozone economies might be heading.
Key issues addressed:
So, if you’re a little concerned about what’s happening in Greece, and Europe as a whole, please enjoy the read here: Russell Market Pulse October 2011
I’d love to hear your thoughts too… how do you think the situation will play out? What else do you believe Policy makers should be considering?
One suggestion has been for Greece to start selling islands!! Let me know what you think!
Amanda Cassar has been nominated for the 2011 Female Excellence in Advice Award (www.afafemaleadvice.com). This Award recognises professional excellence and outstanding work in addressing the particular issues faced by many women in achieving financial security now and in the future.
Read the FEIA Award press release
Cash still dominates many investment portfolios at the moment, indicating that Australians are still wary about investing in equities. The ongoing uncertainty facing sharemarkets has many investors spooked and is the very reason why the appetite for term deposits remains sky high.
Whilst your Adviser may understand the importance of growth assets and constantly encourage you to stay invested, you may not agree or be fully convinced. However, maintaining some level of exposure to equities is key to diversifying returns and achieving long-term capital growth, which is critical to making sure you don’t outlive your money!
This will help ensure that investment decisions are driven by the present and future, rather than the past.
In recognition of this, Zurich Investments has developed a video for investors
emphasising the importance of growth assets within a portfolio.
Learn more in this short video: The Importance of Growth Assets in your Portfolio
