‘Market/Economic Update’ Category

The outlook for shares and growth assets

The outlook for shares and growth assets

Short term risks, but 7 reasons to be optimistic…

AMP Capital’s Dr Shane Oliver cuts through some of the current pessimism and finds some good, credible reasons to be optimistic. Be aware of the usual seasonal weakness, but don’t let it paralyse you with fear… Read more here

For more information, contact Rick Maggi on 9382 8885 or rickmaggi@westmount.com.au.

Rick Maggi Certified Financial Planner
Westmount Financial Perth, Western Australia
Clear Focus. Better Solutions.

2016-2017 Federal Budget

2016-2017 Federal Budget

Key focus on superannuation…

As usual, the pre-Budget fears and scaremongering turned out to be largely unwarranted. With a significant focus on superannuation, last night’s Federal Budget was in many ways a relief to the majority of Australians with superannuation and pensions. In fact, there were a number of positive proposals put forward like the removal not the work test and the reintroduction of tax deductible personal super contributions (up to $25,000). 2016-2017 Federal Budget Summary

For more information, contact Rick Maggi on 9382 8885 or rickmaggi@westmount.com.au.

Rick Maggi Certified Financial Planner
Westmount Financial Perth, Western Australia
Clear Focus. Better Solutions.

The Polyphony of Markets

The Polyphony of Markets

Why international diversification matters…

Dimensional’s Jim Parker discusses the importance of international diversification within investment portfolios. The article serves as a timely reminder to superannuation members, retirees, and investors to look beyond attempting to pick winners and, instead, focusing on the bigger picture – or “the effect of how all the parts fit together”. Worth a read. The Polyphony of Markets

Does your investment portfolio have the right balance?

For more information, contact Rick Maggi on 9382 8885 or rickmaggi@westmount.com.au.

Rick Maggi Certified Financial Planner
Westmount Financial Perth, Western Australia
Clear Focus. Better Solutions.

Federal Budget 2016-17

Federal Budget 2016-17

Only six days to go…

There will be added interest in the Federal Budget announcement next week (May 3rd) as it’s likely to be the final major economic statement the Government makes before the election later this year, quite possibly July 2nd. With the opposition taking a strong stance on capital gains tax and negative gearing, we’re looking at a focus this year on taxation. Corporate tax could be cut by up to 1.5% however, there is likely to be minimal, if any, relief in terms of personal income tax.

There may also be some changes to superannuation. Some potential changes might be reduced contribution caps, the concessional 15% tax on super contributions, an end to ‘Transition to Retirement’ pensions and taxes on superannuation pension payments.

Overall, the outlook is for minimal growth in government spending, with spending offset by savings elsewhere in the Budget.

Where sharemarkets are concerned, historically we have seen some sideways tracking in past election years, but there has been no evidence to date of a lasting impact caused by an election. In fact, Australian economic growth has actually been strong during election years since 1980.

We’ll be watching the announcements closely next week and will keep our clients informed of any meaningful developments.

For more information, contact Rick Maggi on 9382 8885 or rickmaggi@westmount.com.au.

Rick Maggi Certified Financial Planner
Westmount Financial Perth, Western Australia
Clear Focus. Better Solutions.

Up for now…

Up for now…

…but likely to resume its long term downswing

At the time of writing, the Australian Dollar is sitting on $US0.770, which begs the question – what on earth is driving it? Read more here

For more information, contact Rick Maggi on 9382 8885 or rickmaggi@westmount.com.au.

Rick Maggi Certified Financial Planner
Westmount Financial Perth, Western Australia
Clear Focus. Better Solutions.

So what did we learn?

So what did we learn?

Three months of turbulence…

In this article, Don Stammer adds some much needed balance and clarity, first explaining what happened during the first ten weeks of January, and then moving on to some universal lessons we all need to remember during periods of uncertainty. Read more here

This article was recently published on the ‘Cuffelinks’ website, a free weekly newsletter for investors and advisers which I wholeheartedly recommend to anyone looking for an intelligent, impartial investment website. For more information, go to cuffelinks.com.au

Or alternatively, contact Rick Maggi on 9382 8885 or rickmaggi@westmount.com.au.

Rick Maggi Certified Financial Planner
Westmount Financial Perth, Western Australia
Clear Focus. Better Solutions.

Buffett’s letter to investors

Buffett’s letter to investors

Thursday, March 10th, 2016…

Once again Warren Buffett has presented a compelling long-term view of the growth potential of the US economy. In doing so he draws upon his long lifetime experience to explain that betting against the USA was and remains a foolish investment endeavor…

“For 240 years it’s been a terrible mistake to bet against America, and now is no time to start. America’s golden goose of commerce and innovation will continue to lay more and larger eggs. America’s social security promises will be honoured and perhaps made more generous. And, yes, America’s kids will live far better than their parents did.”

The following few sentences, from his introduction, make some telling observations about the last 80 years and the future of the USA..

“It’s an election year, and candidates can’t stop speaking about our country’s problems (which, of course, only they can solve). As a result of this negative drumbeat, many Americans now believe that their children will not live as well as they themselves do. That view is dead wrong: The babies being born in America today are the luckiest crop in history. American GDP per capita is now about $56,000. As I mentioned last year that – in real terms – is a staggering six times the amount in 1930, the year I was born, a leap far beyond the wildest dreams of my parents or their contemporaries. U.S. citizens are not intrinsically more intelligent today, nor do they work harder than did Americans in 1930. Rather, they work far more efficiently and thereby produce far more. This all-powerful trend is certain to continue: America’s economic magic remains alive and well.”

“Today’s politicians need not shed tears for tomorrow’s children. Indeed, most of today’s children are doing well. All families in my upper middle-class neighbourhood regularly enjoy a living standard better than that achieved by John D. Rockefeller Sr. at the time of my birth. His unparalleled fortune couldn’t buy what we now take for granted, whether the field is – to name just a few – transportation, entertainment, communication or medical services. Rockefeller certainly had power and fame; he could not, however, live as well as my neighbours now do. Though the pie to be shared by the next generation will be far larger than today’s, how it will be divided will remain fiercely contentious. Just as is now the case, there will be struggles for the increased output of goods and services between those people in their productive years and retirees, between the healthy and the infirm, between the inheritors and the Horatio Algers, between investors and workers and, in particular, between those with talents that are valued highly by the marketplace and the equally decent hard-working Americans who lack the skills the market prizes. Clashes of that sort have forever been with us – and will forever continue. Congress will be the battlefield; money and votes will be the weapons. Lobbying will remain a growth industry.”

Warren Buffett’s logical and optimistic sentiments serve as a gentle reminder to investors, retirees and superannuation members alike that current economic or market conditions are not necessarily predictive. We are always in a ‘cycle’, and like all cycles (good or bad), they eventually must come to an end.

For more information, contact Rick Maggi on 9382 8885 or rickmaggi@westmount.com.au.

Rick Maggi Certified Financial Planner
Westmount Financial Subiaco, Western Australia
Clear Focus. Better Solutions.

Will politics get in the way?

Will politics get in the way?

Probably ok, but worth keeping an eye on…

As if the worry list for investors isn’t already long enough, politics is turning out to be a key issue for investors, retirees and superannuation members this year. Read more here

For more information, contact Rick Maggi on 9382 8885 or rickmaggi@westmount.com.au.

Rick Maggi Certified Financial Planner
Westmount Financial Subiaco, Western Australia
Clear Focus. Better Solutions.