‘Market/Economic Update’ Category

Europe getting its act together

Europe getting its act together

…and what it means for investors

Dr Shane Oliver takes a close look at the European landscape. Very encouraging. Enjoy! Rick Maggi. Westmount. Financial Solutions.

Read more here

The structural challenges facing Australia…

The structural challenges facing Australia…

…and what it means for investors.

A sobering, but balanced commentary from AMP Capital’s Dr Shane Oliver. Worth a read in this blurry, politics laden post-budget environment. Enjoy!  Rick Maggi, Westmount. Financial Solutions.

Read here

Australia: Looking beyond the gloom

Australia: Looking beyond the gloom

Cheer-up, it’s much better than you think!

In this article, AMP’s Shane Oliver focuses on the Australian economy, which has been getting some depressing press lately. Read more here  (Rick Maggi, Westmount. Financial Solutions.)

Ukraine: Relief rally (and then some)

Ukraine: Relief rally (and then some)

A more conciliatory tone

Russian President Vladimir Putin said he saw no immediate need to invade Ukraine while leaving open the possibility of using force, as the U.S. weighed sanctions on Russia and offered aid to the Ukrainian government.

In his first public remarks since Ukraine said its Crimean peninsula was seized by Russian forces, Putin said yesterday he has a duty to defend ethnic Russians in the region and reserved the right to military action. U.S. President Barack Obama challenged Putin’s rationale for intervening, as Secretary of State John Kerry unveiled $1 billion in loan guarantees to Ukraine’s cash-strapped government during a visit to Kiev.

As a result stocks rebounded worldwide yesterday after Putin’s remarks stirred optimism that the worst crisis between Russia and the West since the end of the Cold War is cooling.  Putin said troops stationed in Crimea, where Russia keeps its Black Sea fleet, have only been securing their bases. Gunmen who’ve seized crucial infrastructure and surrounded military installations are acting independently, he said. At the time of writing, the US Dow Jones Index had rallied 227 points to 16,395 overnight while Australia’s All Ordinaries Index is up 0.60% to 5,444.

And locally…

Perhaps more importantly, today, Australia’s quarterly GDP surprised on the upside posting an annualised rate of 2.8% – higher than the 2.5% GDP rate economists were expecting. When coupled with the announcement today, from Chinese authorities, that their growth rate ‘goal’ for 2014 will remain at 7.5%, this should add more fuel to the overall optimism currently taking hold of financial markets – great news for Westmount clients. (Rick Maggi. Westmount. Financial Solutions.)

The US reinvents itself, yet again!

The US reinvents itself, yet again!

What does this mean for you?

The US economy is yet again reinventing itself. this has been helped along by a determination to get the US economy moving again after the Global Financial Crisis, but the real drivers are an energy boom, a manufacturing renaissance and American innovation. Read on  Rick Maggi (Westmount. Financial Solutions.)

The Economic Clock

The Economic Clock

Market Update (Friday 21 Feb 2014)

Today the All Ordinaries Index closed at its highest level since 19 June 2008 as Australian company earnings continue to impress, but also following a strong lead from Wall St overnight.

Interestingly, investors have been dismissing disappointing US economic data of late, pointing to harsh winter weather as a reason for unexpected weakness. Instead, investors have been taking a relatively optimistic view, positioning themselves for an improving growth trend in the US, betting that improved earnings will be enough to lift the market further this year.

In other words, sentiment, for better or for worse, is finally taking on a life of its own, pushing up US markets (and in turn our own), despite mediocre to ‘ok’ earnings results. Of course, we’ll need to see concrete improvement over the coming months to justify the optimism, and clearly there are are some headwinds out there if you really want to worry (Fed tapering, lower Chinese and Australian growth, Ukraine debt default etc.), however, for now, our general view remains unchanged – we’re still at 8pm, on the ‘Economic Clock’ (a quaint measure, certainly, but a useful tool just the same)  View Economic Clock Here  Enjoy your weekend. Rick Maggi (Westmount. Financial Solutions.)

China debt worries and growth

China debt worries and growth

Overdone?

Whether you have a superannuation, pension or managed fund, direct shares or property, what happens in China, the world’s second largest economy, matters to your financial health. In this article AMP Capital’s Dr Shane Oliver looks more closely at some of the ‘noise’ surrounding China these days, and whether this is something we should all be worried about. As usual, an easy to understand reader-friendly article from one of Australia’s most respected Economists. Enjoy.  Read article here  Rick Maggi (Westmount. Financial Solutions.)

Expect more…

Expect more…

The risk of a share market correction…

Since 1950 the average cyclical bull market in Australian shares lasted 48 months with a 126% gain. The current bull market has gone for 28 months with only a 37% gain. So where are we now in the cycle? Are we heading into a bear market already or is there more growth to come? Read on…  Where are we now?   Rick Maggi (Westmount. Financial Solutions.)