August Loomis Financial Newsletter

With protests in Hong Kong and an unresolved trade war between the United States and China, this may not seem like a wise time to invest abroad.

Given the attention on the size of Australia’s super savings, it may surprise you that personal investors in total have almost as much outside super as inside super.

Author: Simon Kuestenmacher

This article was originally published in The Australian

Congratulations! You’ve just retired. After 40-plus years of work you deserve to reap the benefits from all your savings and wise financial decisions.

But what should you do with your time in retirement? Psychologists agree that the transition into the world beyond work can be difficult as many people define themselves through their career.

This low-interest, lower-return environment may tempt some income-focussed investors to abandon carefully-diversified portfolios in the pursuit of higher income.

We look at three possible scenarios that could unfold in global equity markets over the next five years - are the roaring 20’s upon us, or is there reason to tread more carefully as we head into the next decade?

In a low-interest, lower-return, more-volatile investment environment, investors have an even greater incentive to keep wealth-damaging behavioural traits or biases under control.

Technology has become imperative to our daily work, activities and social life. What does using technology to enhance our lives, but not detract from it, really look like?

Self-care – it’s a bit of a ‘buzz’ word. Everyone is telling us we need more of it – can’t pour from an empty cup and all that. But it’s harder than it sounds!

Highlights:

• Central banks have engaged in a policy reversal in response to weaker economic growth and the uncertainties associated with the US-China trade conflict.

• US inflation has inched higher, but core CPI measures and sluggish wages growth still point to spare capacity in the labour market.

• The UK’s new prime minister Boris Johnson will enter Brexit talks with the EU, but Europe’s negotiators are unwilling to agree to the removal of the Irish backstop.

• Fears of further economic fallout from the trade conflict were partially allayed following positive growth in Chinese exports in July.

• The Australian economy is benefitting from the rise in commodity prices, but the Australian dollar remains under pressure due to the diverging interest rate differential.

If you have any questions regarding this report or would like to discuss your portfolio, please contact me directly on 02 65622295.

Read full August 2019 market update report  >>

Which key events have been driving markets? Watch this video of Senior Economist Bob Cunneen in discussion with Portfolio Manager, Myooran Mahalingam.