![Shane Oliver shares his Insights on China]()
by Jodie | Oct 21, 2011 | Economy, Finances, Investments
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
![Shane Oliver shares his Insights on China]()
by Jodie | Oct 7, 2011 | Business, Debt Management, Economy, Finances, General
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:
- Will Greece be forced to default?
- What is the status of the EFSF?
- Dexia Bank liquidity crisis?
- What is the role of ECB?
- What is the solution and timeline of events?
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!
![Shane Oliver shares his Insights on China]()
by Jodie | Sep 7, 2011 | Finances, General
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
![Shane Oliver shares his Insights on China]()
by Jodie | Sep 5, 2011 | Economy, Finances, General, Investments
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
by Jodie | Aug 29, 2011 | Economy, Finances, General, Interest Rates, Investments, US Economy
It looks like a bit more ‘calm’ returned to the Australian market this week, with local factors returning to centre stage again.
Can you take us through the key drivers over the past week?
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After the huge moves of the first half of August, the S&P/ASX 200 has spent the past two weeks trading in a 5% range centred around the 4200 level – which is where it continued to trade on Friday morning.
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Compared to the past few weeks, this week was a lot calmer in global markets. With overseas headlines taking a backseat for a few days, and with a relatively quiet week in terms of economic data releases, Australian investors were able to focus again on the local company reporting season before the RBA Governor’s appearance in front of the House economics committee and the Jackson Hole central bankers’ meeting in the US on Friday.
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In terms of local company earnings, current EPS growth for the market is running at around 16-17% for 2011, which is expected to come back to 14% next year. A key feature of the current reporting season is the higher than expected dividends, despite some generally disappointing earnings results. The fact that companies are deciding to return cash back to shareholders reflects a more subdued outlook for the Australian economy of late, and hence a reduction in the
level of attractive investment opportunities at present. Earnings guidance for the year ahead has also been largely mixed, reflecting the two-speed nature of the economy at present (mining vs non-mining).
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The most notable earnings results this week were BHP Billiton (bumper $22bn net profit), and Woolworths ($2bn). Woolworths warned that profit growth from their retail operations could be as low as 2% over the coming year – in keeping with the lacklustre retail sales data coming through at present. BHP, on the other hand, said it would invest a record USD20bn in growth projects in iron ore, coking coal and shale gas.
The week ended with Central bankers back in the spotlight. RBA Governor Glenn Stevens gave a speech on Friday, was there anything surprising in his comments?
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Reserve Bank governor Glenn Stevens’ testimony to the parliamentary economics committee on Friday morning included the comment that inflation data is ‘still concerning’, which added a short term boost to the A$ as speculation about near term rate cuts was dampened somewhat. The general view is that the RBA has
abandoned its tightening bias for now on concerns about the global economic
outlook and the impact of this for Australian growth, but may be less likely to
adopt an easing bias while core inflation remains near the top of the RBA’s
2-3% target band.
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The market is still quite nervous about developments overseas, and is looking to the Jackson Hole central bankers conference for any announcements out of the Fed’s Bernanke about the US growth outlook and any prospects for QE3.
