The Independent Adviser

Economy

Patient Investing

The short term outlook for global stock markets is more volatile due to uncertainty about whether US interest rates will rise and severity of the slowdown in China and emerging markets.  Slowing growth is particularly in China’s construction and industrial sectors, which is most inconvenient for Australia as we supply...

Roller Coaster of Emotions

It’s been a volatile 10 days or so for investors but markets have since somewhat recovered.  Much uncertainty is behind this amplified volatility but the US recovery still underpins a positive global outlook.  Despite slowing, China is likely to remain a source of growth.  Amid volatility, bargains appear – patience...

Just Yuan Week

A lot can happen in just yuan (one) week!  Here we summarise what was a big week in global markets, some major events and their impact on Australian investors… Depreciation of the Yuan: You may have heard that China devalued its currency… three times!  The Yuan and US dollar exchange...

5 Investor Risks Ahead

The last two weeks remind us how the global environment can affect Australia’s prospects and those of our investment markets.  This week we examine 5 global investor risks of concern to Australian investors… 1: Greece On Sunday, Greece might return to austerity or leave the Eurozone – leaving would be...

Housing and Banks

Australia’s love for property has been a strong tailwind for huge profit and dividend growth...

What’s the Outlook?

Investors have done quite well in the last couple of years with rising capital values in shares and property. These seem likely to keep driving portfolio returns but looking forward, those high returns that were pushed along by falling interest rates will probably now be lower. Global economic conditions are...

Demographic Impacts

We heard an interesting presentation this week about the impact of global demographic shifts, by Dean Stewart, an executive at Macquarie.  In a nutshell, ageing populations in the developed world and China will affect global investment trends as more people retire to spend their savings in a slower growth world. ...

“Borrow, spend, it’s all going to be ok after all”

As Alan Kohler said in his commentary last night, this Budget read like an apology to the Australian people… Joe Hockey then said in his interview with Leigh Sales that “it’s not about me, it’s about my country”… which perhaps when translated means “it was about me while we cried...

Healthy Wealthy and Wise(ly Taxed)

We all aspire to be healthy, wealthy and wise. Each generation is living longer than the last and being a tad wealthier is likely to lead to a healthier and longer life than the average. Meanwhile, low interest rates are likely to be with us for much longer than people...

The Ever Evolving Landscape

Where’s the growth? Continued slowing of China’s long term building boom is reducing demand for our mining output, resulting in even lower Australian tax revenues.  So Australia’s growth outlook is fragile but probably gradually up from 2.8 to 3.2% in 2016 with lower mining receipts offset by our weaker currency...