News & Views
Special Market Update
Market volatility continues as expected but there are some very positive signs coming out of Europe and the US. This should go a long way towards bringing some stability and confidence in global share markets which we expect would have a direct influence on our markets in Australia.
The EU / IMF financial “bailout” package is proceeding and once in place will not only have the ability to provide ad hoc funding but also to participate in secondary markets and provide long term, low interest loans to members of the EU. Following recent talks, the leaders of Germany, France and Greece have provided assurances that Greece intends to pursue austerity measures to deal with its debt position and the EU will support it through this process. Five of Europe’s major banks have also issued a statement to the effect that they will continue to support Greece. This is all promising but there is still a long way to go to resolve these issues and there is no guarantee that Greece may not default in some way in the future.
In the USA, President Obama has announced a plan to stimulate jobs through a series of targeted tax cuts and incentives. He also announced a plan to develop infrastructure projects to provide additional employment opportunities and has appealed to his parliamentary colleagues to bury their differences and support the package for the good of the country.
These are all very positive developments with a high likelihood of finally dousing the flames of fear that have been enveloping the markets. The consensus outlook for world growth is positive with Europe expected to lag the rest of the world for some years.
We remain very positive about the prospects for strong recovery in the Australian share market on the basis of low price to earnings ratios and high dividend yields. We expect a revival of positive sentiment in both the domestic and business sectors in Australia with interest rates expected to remain on hold for some considerable period well into 2012. We expect the property sector to consolidate and plateau for some time and the retail sector to improve markedly as confidence grows.
We keep reiterating the need to keep faith with investment strategies, look through the market noise and concentrate on the fundamentals. We believe that this philosophy will once again prove to be successful.
Posted: 19th September 2011
Written By: John Hewison CEO
Special Market Update
-
Young Australians must approach financial fitness like a gym workout, says Hewison Private Wealth
Young Australians must approach financial fitness like a gym workout, says Hewison Private Wealth
Young Australians eager to ‘get rich quick’ may be disappointed to hear that wealth creation can be as tough as achieving washboard abs, but those who attended a Young Investors Wealth Forum, hosted by Hewison Private Wealth, in Melbourne last week were in for a reality check.
... -
Super strategies to consider for financial year end, Hewison Private Wealth.
Super strategies to consider for financial year end, Hewison Private Wealth.
With one month to go until the end of this financial year, wealthier investors would do well to review their superannuation strategy and maximise their super savings before changes announced in this year’s Federal Budget kick in, Melbourne financial advisory firm, Hewison Private Wealth, has warned.
<... -
Shorten’s ban on asset transfers a gamble for SMSFs
New rules announced within the latest Stronger Super reforms package, banning self-managed super funds (SMSFs) against making in-specie asset transfers, will disadvantage SMSFs and exposes them to greater costs and risks, warns Hewison Private Wealth.
John Hewison, CEO of Hewison Private Wealth, said while the move to introduce MySuper and cut costs for superannuation members has been... -
Market volatility continues as expected but there are some very positive signs coming out of Europe and the US. This should go a long way towards bringing some stability and confidence in global share markets which we expect would have a direct influence on our markets in Australia.
-
The Age Money "Where can we put it?"
It is a question that has probably crossed the minds of many people in their mid-life years who have some spare cash. Is it better to put the money towards paying off the mortgage or into superannuation?
The kids may have finished school or one of the partners may have returned to full-time work and there is some spare cash for the first time in years. But the superannuation balance i... -
The Age Money "Step right up and do it yourself"
More people are leaving their large superannuation funds to start self-managed super funds (SMSFs) because they want more control over how their retirement savings are invested.
•A closer look at costs
•'I was overwhelmed by paperwork'
•Cooper: 'No safety net' on SMSF losses
But SMSFs, or ''DIY'' funds, have potential pitfalls, especially for those who are not ... -
Investor Daily "High returns possible in low-interest environment: Hewison"
Investors should aim to diversify their investment strategy to achieve strong returns in a low-interest rate environment, according to Hewison Private Wealth.
Despite low interest rates affecting the net income of cash investors, Hewison has said it is still possible for investors to achieve high returns - if they take a long-term view of their wealth management.
"It's i... -
Invsetor Daily "Comprehensive advice important for SMSFs"
Scaled advice option shouldn't take focus
Self-managed super fund (SMSF) trustees should rely on holistic advice when building their retirement savings, according to Hewison Private Wealth.
While scaled advice options form a core part of upcoming industry reforms, Hewison have said the new provisions should not take the place of more comprehensive advice when it ...
-
What is Asset Allocation?
Asset allocation is the percentage allocation of investment funds to the various investment classes, the main ones being –
· Cash
· Real estate property
· Australian shares
· International shares
· Fixed and variable interest
-
From the CEOs Desk - 2011 June Issue # 36
It has certainly been a long hard slog for investors with the Australian sharemarket remaining flat despite all the positive economic indicators. We have low unemployment, a booming resource sector, apositive GDP outlook as forecast by the International Monetary Fund and the Reserve Bank. So why isn’t our share market booming? Major global share markets have recovered despite their economies co...
-
Are the good times over for property? June issue # 36
Over the past ten years Australians have experienced a residential property super cycle where values have increased considerably over this period. The main drivers of this meteoric rise have been historically low interest rates, low unemployment, government grants for first home buyers and the strongest terms of trade seen in 140 years. The only hiccup during this period was from late 2007 through...
-
Economic Update - 2011 June Issue # 36
While many thought that the world markets would recover strongly over 2011 it seems we have been stuck in a rut over the past few months with most investment markets tracking sideways.
While markets are often driven by fear and greed we cannot ignore the underlying economic factors that also serve to drive investment markets on a global scale.